Debt/CC Reduction Services

[Anonymous]

My wife and I are considering using a debt manangment company to reduce our cc payments, but are unsure of the consequenses to our FICO or which company to trust.  Is dealing with a  non-profit better than not? 

[Anonymous]

Anecdotal feedback on several boards would indicate that those services cause more harm than good, and there is nothing they can do that you cannot do better on your own.

[haulingthescoreup]

Here's a link from the FTC that might help you understand the different options:

Knee Deep in Debt

Discussion of debt negotiation programs is prohibited on these boards, but there are good debt management programs, and several of our members have had good experiences with them. They reduce your payment by getting your creditors to reduce the APR's, so you are repaying your debt in full, just at a lower interest rate.

You might want to do a search here on DMP.

[llecs]

IMO, try doing it on your own. Cut your expenses, increase your income, stop using the cards, and at the very least negotiate lower APRs with the CCCs as Hauling mentioned.

And besides, not to make us sound cheap, we are free. Great examples in here of CC issues pertaining likely to your CCs. You can search around and see how your creditor would likely respond if you said this or did that.

[marty56]

I used a DMP program and had great results results.  You can try it on your own using various debt reductions plans.  Dave Ramsey uses to so-called debt snowball plan where your make minimum payments on all but your smallest account and pay as much as you can until its paid off.  This is the most common plan that poeple and DMP programs use.

I sent you a PM on the DMP program I used.

Do not go near the so-called debt settlement programs since they will trash your credit and possibly rip you off.

November will be 1 year since I finished the program and it tookme almost 5 years to complete.

[JayBeast]

I'm currently using a debt management company and I have nothing but positive things to say about it.  My phone no longer rings from bill collectors, my accounts now report as being paid on time, and I am actually paying off my debts.  I can see myself being debt free in about 18 months, or 12 if I try really hard.  I have been in for about 18 months so far.  I would also advise doing a search on the boards for DMP.  I have sent you a PM with the company I am using.  Whichever company you use, just make sure they are paying your debts on time.  I watched mine like a hawk for the first few months to make sure they were paying, and I still watch once I see the money drafted from my checking account.

As far as FICO scores go, mine has gone up about 150 points and I expect it to go up another 70 or 100 more!!