I see ALOT of posts here.......

You might try contacting your creditors..some of them offer a "hardship" program with reduced interest rates until you get back on your feet.

 

1. find a part-time second job

2. cut back expenses (i.e. HS internet, cell phone plan, caller ID, cable, etc...)

3. consolidate as many balances to as few cards as possible (preferably 1) and then enroll that/those cards in a *local* type of CCCS. Make sure the issuers will work with the CCCS programs. Then watch the CCCS program like a hawk to make sure the payments are sent on time. And send any additional money to the creditor in addition to CCCS.

4. Borrow against your whole term life insurance.



There is nothing wrong with CCCS as long as:

1. you have written proof that the creditor will accept the CCCS terms and payment amounts.

2. you make sure every month that the creditor's minimum payment was made on time by CCCS.

 

Unfortunately, you've really answered your own question. There are no real solid answers to get rid of cc debt, and not hurt your credit rating, unless your in a position to consolidate your debt, and pay everybody off, get a 2nd job and make paying down your debt a focus, or skim your other expenses to bare bones and pay off debt. Sometimes none of those are viable options.

BK and credit counseling are similar. They both trash your credit. IMHO, there isn't much difference, except if you feel morally obligated to not walk away from your debt. I did counseling many years ago. It worked for us. Our credit was toast, but with the exception of one creditor, once we completed the program, all counseling notations were removed and we were in decent credit shape. Others have horror stories. BK sits there for 10 yrs unless you are lucky enough to remove it in the repair process--but that is an unknown.

You are right, most cc's won't even think about putting you in a hardship program until your credit report is severely blemished. And they wonder why so many BK's are filed. I have never heard of NCC, but maybe others can share the good and the bad part of using them.

They are no easy answers, and whatever you decide to do, it is a purely personal choice. I feel for you, and wish you luck!

 

Mr. Breeze,

If you are making the minimum payments. You can do this without a BK or credit counciling.

Pay the minimum payments on all accounts, except for the ONE that is costing you the most in interest each month. For the debt that is costing you the most....pay that debt the minimum amount and an extra $5.00 or $10.00 or whatever you can find that month. The next month pay the new minimums on all debts again, except on that ONE that is costing you the most. (which is the one with the highest interest) Pay that debt the same thing you did the month before, plus the difference in the new minimums for the others.. even if its only a dollar or two. In time it will get going. The one thing you MUST do is put your cards away, lock em up, freeze them whatever. You must not USE them any more. ( I'm the pot calling the kettle black now). Don't cancel the cards as you will lose your bargaining power later on when it comes to requesting a lower rate. If your rates are high anything over 9.9%. Call and ask NOW for a lower interest rate. If you can't get it call again in 3 months, 6 months and ask again. Watch your mail for new offers, but ALWAYS read the fine print.

I am very proud of the fact that since finding this board and another that the highest interest rate I am paying at the moment is 3.9%. However as of this morning our credit card debt is over 20K. The thing I/we must do now is budget, get these suckers paid off and STOP using them period.

I hope I have been helpful, If I can answer any more questions for you just ask.
Cherie

 

My only problem with debt consolidation/help companies are, they want you to pay them and then they make the payments to your creditors. There are alot of stories about the payments being late or not made at all. I just think the risk of your credit getting screwed up by one of these companies is to great. Have you thought about a home equity loan. I dont know if you own a house, but if so that would be an option. I have heard of people cashing in on the 401-K, but that would have to be a last option for me. I would get a second job and try to cut back on the extras you have for a while. You are lucky that you have been on time and only one over the limit fee. There is no other real solution that I can come up with other than get a second job or file BK.
Good Luck!!
Matt

 

If you are going to use the programs you speak of be sure to check in your area to see if there is a program put on by Catholic Charities or Neighborhood Service Organizations or other non-profit type of organizations. They are usually a lot more reliable and much cheaper too.

 

You are correct. People on these financial sites trash talk these companies. I was in the same situation as yourself a few years back. I used such company to get back on track. I would try to give you a brief run down.

Be carefull about who you sign up with. Be very carefull.

Do not buy into the non profit crap that people keep saying, they probably don't know what they are talking about. In my state, only non profit orgs can be in the business (debt Consolidation). I think the law that requires them to be non profit is federal. Therefore, they would all be non profit.

Starting a non profit business is not that hard to do.

ANY COMPANY CAN SCREW UP YOUR FINANCES< profit or no profit.

Make sure you sign up with a company that has a local office of business. Remember that this is your personal finance, you need to be able to walk in and talk to a manager or sup. if you have issues with the way they a handling your "personal finance."

The company I worked with was small local when I joined but became national by the time I left. They handled my account well enough. HOWEVER ...

Overall, I think they were morons. I never really had a problm with them because I paid VERY CLOSE attention to what they were doing. After all, this was my "Personal finances".

The few times that I looked the other way, they SCREWED UP.

The morality of my story is that "your Personal finance" is your personal business. Do not leave it to anyone else. These companies offer a valued service but do not expect to dump your problem on them and leave them to solve it for you.

Most people who get screwed by these compaines do so because they failed to take basic responsibility.

Willy Nelson was a millionaire who left all his personal and business finances for accountants to deal with. He is now a bumb who will work of food.

I personally know other people who used the same service as myself but had problems. They were also late on payments many times or missed payments. If you are responsible and care about your finances you would do just fine with these companies.

Before you join, make sure to keep one good card active and away from them. You would not be able to get another card until after you have completed your repayment plan.

Yes, it would leave a "temporary" bad mark on your credit report. However, it is still about 10 times better than BK.

I can go on and on, but I think you get the gist of it.

Bottomline, Debt Consolidation Companies are only as good as you take responsibility for your own finances. If I needed to I would use them again in a heart beat.

 

Ms.Breeze cops out and Mr. Breeze takes her place.

 

Re: Re: I see ALOT of posts here.......

I'm in your situation as well.. I called CCCS and they couldn't help.. They even told me they couldn't help.. The program would have got me out of debt one month earlier. I (nor them) thought it was worth it.. Then the guy mentioned settling with the c.c. companies.. He said he knew of people that quit paying their cards that they were barely paying and once they got close to charge-off date they would come up with a settlement offer from the c.c. company usually 30-50% and with the money they were paying to the cards each month they paid soem of the settlements..
you could try this..

 

Re: Re: I see ALOT of posts here.......

While I don't disparage anything anyone has said here, one thing that people might want to consider is that if they care about getting their credit straightend up its going to be a lot harder to do it after CCCS than it is before using them.

It might be impossible in fact. Some might think it better than Bk but in reality both are about the same in the eyes of future creditors. You may have done the honorable thing and paid them off but it still says that the debtor could not manage his own affairs so he had to run to someone else for halp. That's basically what BK says too in the eyes of new creditors in the future.

 

Re: Re: I see ALOT of posts here.......

Several months ago there was a lady who used the screen name of Breeze also.

Haven't noticed her posts in a while now.

 

Re: Re: I see ALOT of posts here.......

Lbrown, you are such a class act.

not

I wasn't going to do this, because I am a really nice person, but you gave me the perfect excuse.

 

Re: Re: I see ALOT of posts here.......

Lbrown,
you're a piece of chit!!!!! i've always given you the benefit of the doubt, but this comment was the proverbial straw! You, sir, are a complete waste of time on this board. Not once, have i seen you give any useful information. NOT ONCE!!! that's really sad considering how many post you have! Next time, you feel like making a smart a$$ comment hoping you don't get caught, why don't you direct it at me???!!!!! i'll be more than happy to get into intellectual fisticuffs with you, and unlike Pat, i have no problem shooting an unarmed man. (i know you are terribly slow, so let me translate. YOU ARE AN IDIOT, and the original troll)

 

Re: Re: Re: I see ALOT of posts here.......

Well, mr Bill. I would like to attest to the fact that they are no where as damaging as filling BK. The big difference is that BK stays on your record for 7 - 10 years even if you paid it all up and became a millionaire in six months.

With debt consolidation, The notation on your account is removed after you complete pay off program.

I put 3 of 4 cc in the program and only one card (MBNA)reported to CRA as belonging to the program. I have heard same thing from other people as well. All other accts. were showing current.

With MBNA, I did not have to do anything. Once they got paid in full (I over paid), they sent me a check and my next CR showed no sign that I was in any program. I was in the program for 3.5 years but scheduled for 5 years.

I got my first house with conventional First time home buyer loan (Not FHA), 2.5 years into the program.

Also, Debt consolidation has a positive mental advantage. You don't have to live with the stigma of filing BK chaper 7 or 13.

Look at it this way, if your boss called you into the office and said you have two options right now. "I can fire you or you can resign" You are out of a pay check with either option. Which one would you choose and why?

Again, If I had to do it again. I would go to a debt Consolidation company in a heartbeat.