Hello everyone, I'm new here.

[Anonymous]

Hi everybody.  I am in CC debt  ($25,000) and am having trouble making payments. I have 4 cards, and am looking into a Debt Management Plan. I've contacted a few, and the best one so far seems to be Consolidated Credit Counseling Services. They said they can put me on a 44 month plan and I'd be paid off. My payments would be around $700/month, which is close to my minimum payments now, which would take 4ever to pay off.

It seems like a plan, has anyone here done business with Consolidated before, or suggest a couple more companies?  I'll be looking into Take Charge America, & Clearpoint Credit Couseling, too.

By the way, Consolidated charges $49 to set it up, and $49/month, included in my payment.  Is that reasonable?  I'm also worried that any company I choose, if they  will make my payments on time.

My FICO score is 520 at the moment.

HELP PLEASE.................

[marty56]

I used Debt Free Christian (Harbor(.  $49 a month is about right.  I think I was paying in that range.

I just graduated back in November after 4.5 years in the program.

Some things about DMP.

1.  You must monitor your balances.  The DMP company wont.

2.   Make sure the payments are paid on time.

3.   Dont apply for credit cards while in the program.  BofA will will remove your card from the plan if  you do.

4.  Try to keep your oldest CC out of the plan since they will close all the accounts.

5.   There is life after DMP.

Message Edited by marty56 on 05-18-2008 05:48 AM

[Anonymous]

Thanks marty, for your response. The thing that worries me is I have to sign a contract with them, before they talk to my creditors. I just hope their estimate is real close to the payment they specified. The counselor that worked with me over the phone seemed real knowledgeable, and like he really cared. I DID have a good feeling after I talked to him, though. I just get nervous that maybe the payment will change after they negociate (sp?) with my creditors.

[marty56]

The only that changed for me was they rasied their monthly fee.  I dont remeber how much it was when I started but when I finshed the program it was 42 or 46.

As far as the payments go, they onl;y time it changed was when BofA decided they wanted more from me after I got a Sams card and the DMP people had to submit a new proposal to them which added $75 to my monthly payment.  That waont happen to you if you dont have a BofA account and you dont open new credit.

Funny thing is that most CCCs on a DMP get all their money plus more interest on their money then you or I could get at the bank, yet when I spoke with BofA on the phone about the rasining of my payment, they treated me like dirt.

I cant begin to describe the feeling you get when you make your last payment.  Good luck and dont worry, you will do fine.

[Anonymous]

Thanks again, it sounds encouraging. Funny thing is I do have B of A, but my counceler said I could leave them off my DMP, they are hard to work with.  Thanks for raising my spirits.  I can't wait to be debt-free.

BTW, marty, is this who you went through?-------  http://www.christiandebtconsultants.com/

Message Edited by Bigraydaddy1 on 05-18-2008 11:38 PM

[BungalowMo]

BEFORE YOU SIGN ANYTHING........

I feel I have to chime in here....Have you tried just talking to the 4 creditors? 

First, Come up with a bottom line total you feel you can pay monthly without shorting yourself.  Look at your 4 debts.  Who is owed the most?  Who charges the highest interest rate?  Who do you have the longest history with?  Might be good if these can be answered with the same name.

Talk with them and find out...are they willing to drop late fees?  Drop some ongoing interest until you can catch up? 

From what I've read, these have not gone to collections.  This is good!  Let your creditors know that you would rather give THEM the money that would otherwise go to the Credit counselors.

Do what you can...swallow that pride & call them.  They may be happy to work with you knowing that eventually they will receive all their money, rather than just a portion.

Finally....why would you pay someone to do all that was stated above?  They say that they "work with creditors", but actually, the cc companies want their money & if they'll accept less that regular payments from those people, they'll accept it from you as well.

Try  it...I know it worked for me!

Message Edited by BungalowMo on 05-19-2008 08:38 AM

[Anonymous]

Thanks 4 your post, bungalowmo, but do you think I can get the same deal the DMP would get, and be payed off in 5 years or less? I thought they're trying to keep me in debt forever, so why would they work with me to pay off my balances?

How would I go about it if I tried? Do I 1st ask them to lower the interest rates, or eliminate the late fee's?  The 1st person you talk to always say's there's nothing they can do.

Do I then ask to speak to a supervisor? What if that doesn't work? I have alot of questions on how to go about this, any feedback would be appreciated.

[demi]

Do check out Take Charge America.  I have 3 months to go on my Debt Management Plan with them and they have been great.  Very much into educating you.  I think my start up fee was $50., my monthly is $35., but could be different now.  They make you make a budget, etc.  They don't let you have any cards, I got rid of all of mine and have managed just fine (on car rentals are hard, but now I do have a work credit card, and now pretty much the only reason I would rent a car is work).  I didn't have a BofA at the time, but my one card still outstanding was bought out by BofA during the process, have not had any problem, but I do notice they do soft pulls every so often, guessing they are checking to make sure I have not gotten any new cards.

[Anonymous]

     Who are the 4 CC's how much do you owe each and what is your current interest rate, possibly someone has had to work with these companies and could offer you advice based on the company from the experiences they have had with them.  

      What is your monthly payment on each and what is the most you could afford to pay on them. 

      DMP may be fine , I dont have experience with them so I dont know.  But if you could figure this out yourselve that 49. upfront and 49. (and they may raise that from what other posters are saying)  could go to paying off your debt on your own.  If you are unable to stick to a plan and not add any more debt to your cards then a DMP might be your best solution. 

      Plus do a financial sheet (nothing fancy) just a piece of paper and pen, write down your take home pay and all your expenses, be they large or that coke you buy every day.  One coke a day (20 oz bottle) can run you app.  47.70 a mth (more if you put that on a CC and pay interest).  Expenses like that can be cut out for your over all financial success.  Take a seat and really look at what you spend each mth. 

      You can sit down and figure how long a CC will take to pay off if you know the numbers and then you can see if you could do this faster or your own or with help.  Mostly it takes commitment.  Good Luck Vicki

Message Edited by greyhound2007 on 05-19-2008 10:14 AM

[Anonymous]

Gosh darn, my credit cards are these.... the APR's all around 22-29%, don't have all my statements hand, keep in mind--they're all at their limit.

Union Plus Visa -  $ 10,000    Minimum payment  $200

Union Plus MC - $1500               "                  "          $75

Citicard - $6000                          "                   "        $220

B of A- $2000                               "                    "          $75

and this one is stupid, I know,  Citifinancial (not a CC, a unsecured loan ) - $7300  with a monthly payment of $206.

Any advise??

Thanks to all you who responded, keep the advise coming  PLEASE

Talked to TakeChargeAmerica, they offered a 50 month plan around $650/ mo.

That's less then I'm paying on my minimums, and like I said, It'll take YEARS & YEARS like I'm going.

NEED MORE ADVISE!!!!!!!!!!!!!!!!!!!!!

PS the reason I said ! had 4 CC's was I was going to keep one for emergencies...the lowest limit.

Message Edited by Bigraydaddy1 on 05-19-2008 12:17 PM  Edited 4 spelling

Message Edited by Bigraydaddy1 on 05-19-2008 12:17 PM