No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Be very very very VERY (I must emphasize) VERY careful when going through a debt management program. I was forced into one back in 1998 as it was required due to my clearance regardless of my ability to repay my debts without it.
I was young and stupid and all heard them say was
"Don't worry it will lower your monthly payments, when you add up all your bills you are currently paying X Amount of dollars and with the program you will only pay x amount of dollars and all of you late accounts will be brought current."
Sounds great right?!?!?!?!? Let's all sign up!
Not so much. This "Not for profit" company tacked on a pretty hefty fee. I would send them the money required to pay my new "minimum" payment to each creditor plus a little extra to cover their fee, they would then take their GINORMOUS fee off the top divide the rest among the creditors and VOILA! I got an over the limit fee PLUS a late payment fee (they paid all of my bills on the same day of the month regardless of what day it was due) which in turn caused the creditors to increase my APRS which just compounded the over the limit problem. A horrible vicious cycle was born.
*I was living overseas at the time and the statements were going to my moms house. The payments were autodrafted from my check so neither myself or my mother had any reason to believe there was a problem
By the end of 2 years I was in almost 3 times as much debt as I was to start with without ever using credit card or opening any new accounts. Like I said YOUNG and STUPID.
My very serious point is that there are BAD companies that disguise themselves as helpful friendly Debt Management companies. If you really do need debt management assistance do ALOT of research before hand. Check the BBB, Ripoffreport.c , consumer reports, ask your bank or credit union if they know of any, and when you choose one make sure you read EVERY WORD of the contract. I missed the part about the fee because it said "a small percent of your total debt". Well... a small percent of ALOT of debt is a BIG number.
AmyBoo wrote:
Be very very very VERY (I must emphasize) VERY careful when going through a debt management program. I was forced into one back in 1998 as it was required due to my clearance regardless of my ability to repay my debts without it.
I was young and stupid and all heard them say was
"Don't worry it will lower your monthly payments, when you add up all your bills you are currently paying X Amount of dollars and with the program you will only pay x amount of dollars and all of you late accounts will be brought current."
Sounds great right?!?!?!?!? Let's all sign up!
Not so much. This "Not for profit" company tacked on a pretty hefty fee. I would send them the money required to pay my new "minimum" payment to each creditor plus a little extra to cover their fee, they would then take their GINORMOUS fee off the top divide the rest among the creditors and VOILA! I got an over the limit fee PLUS a late payment fee (they paid all of my bills on the same day of the month regardless of what day it was due) which in turn caused the creditors to increase my APRS which just compounded the over the limit problem. A horrible vicious cycle was born.
*I was living overseas at the time and the statements were going to my moms house. The payments were autodrafted from my check so neither myself or my mother had any reason to believe there was a problem
By the end of 2 years I was in almost 3 times as much debt as I was to start with without ever using credit card or opening any new accounts. Like I said YOUNG and STUPID.
My very serious point is that there are BAD companies that disguise themselves as helpful friendly Debt Management companies. If you really do need debt management assistance do ALOT of research before hand. Check the BBB, Ripoffreport.c , consumer reports, ask your bank or credit union if they know of any, and when you choose one make sure you read EVERY WORD of the contract. I missed the part about the fee because it said "a small percent of your total debt". Well... a small percent of ALOT of debt is a BIG number.
Their selling point is always reduced initial monthly payments.
Reduced payments that are not in access of monthly debt owed do not reduce principal balance owed, and thus also always result in an increase in principal/debt, and thus further compounding of the debt.
As my grandfather once told me, if they offer you a miracle cure for your old malady, then it will be at the hidden expense of their newly-inflicted malady.
@RobertEG wrote:Their selling point is always reduced initial monthly payments.
Reduced payments that are not in access of monthly debt owed do not reduce principal balance owed, and thus also always result in an increase in principal/debt, and thus further compounding of the debt.
As my grandfather once told me, if they offer you a miracle cure for your old malady, then it will be at the hidden expense of their newly-inflicted malady.
Yep! I just heard an advertisement on the radio saying they will reduce your payments to principal. Ummm ... why the heck would you want that?!
Be very, very careful!