Comments on: do credit counseling agencies (debt reduction) really work? http://www.reducecreditdebt.info/do-credit-counseling-agencies-debt-reduction-really-work-2/ Mon, 01 Aug 2011 19:38:35 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: LivingDebtFree http://www.reducecreditdebt.info/do-credit-counseling-agencies-debt-reduction-really-work-2/comment-page-1/#comment-1772 LivingDebtFree Wed, 11 Feb 2009 12:30:41 +0000 #comment-1772 For some people, sometimes they are the best solution. But oftentimes you can accomplish some of what they do yourself. If you are really good with numbers, very patient, detail oriented, you can probably call your credit card companies and negotiate some changes in your terms. 1. Sometimes all you have to do is ask them to give you a lower rate. Call their customer service number and ask them. Tell them if they can't help you, you will be transferring your balance to another company that will give you the lower rate. If you're making your payments every month on time, they probably don't want to lose you as a customer. Be willing to go through the trouble to make good on moving your balance to a lower rate card. 2. If you are only paying minimum balances, don't expect your balance to go down much, even on a card you're not currently using for new charges. Take a good look at the amount of interest posted to your account during the previous cycle. They're going to charge you about the same amount of interest in the next cycle unless you make a substantial dent in the balance being carried on that card. So to get ahead, you should plan to pay at least one and one half times as much as the interest charged to your account each month. That should help you start seeing some progress. 3. If you really have no additional money to increase your payments, you have overextended yourself. You need to carefully examine your budget to reduce expenditures and look at ways to increase your income. These are the only 2 things you can do to change your cash flow. 4. If you really cannot make any headway on your own, contact Consumer Credit Counseling. They will review your situation with you and you need to tell them EVERYTHING about what you owe. They will only accept you for their program if they can help you get paid out of debt within a 5 year time frame. They have a little bit more power and flexibility in getting your interest rates lowered, and lower payments set up because of their status as a credit counseling agency. Make sure you ask lots of questions and understand all the terms of the program. 5. Usually, the fact that you are using a credit counseling agency will show up on your credit report WHILE you are contracted with them. This will prevent you from getting new credit during this time and will affect your credit score. On the other hand, if you have no other options, it WILL help you get your debt under control! Good luck For some people, sometimes they are the best solution. But oftentimes you can accomplish some of what they do yourself. If you are really good with numbers, very patient, detail oriented, you can probably call your credit card companies and negotiate some changes in your terms.
1. Sometimes all you have to do is ask them to give you a lower rate. Call their customer service number and ask them. Tell them if they can't help you, you will be transferring your balance to another company that will give you the lower rate. If you're making your payments every month on time, they probably don't want to lose you as a customer. Be willing to go through the trouble to make good on moving your balance to a lower rate card.
2. If you are only paying minimum balances, don't expect your balance to go down much, even on a card you're not currently using for new charges. Take a good look at the amount of interest posted to your account during the previous cycle. They're going to charge you about the same amount of interest in the next cycle unless you make a substantial dent in the balance being carried on that card. So to get ahead, you should plan to pay at least one and one half times as much as the interest charged to your account each month. That should help you start seeing some progress.
3. If you really have no additional money to increase your payments, you have overextended yourself. You need to carefully examine your budget to reduce expenditures and look at ways to increase your income. These are the only 2 things you can do to change your cash flow.
4. If you really cannot make any headway on your own, contact Consumer Credit Counseling. They will review your situation with you and you need to tell them EVERYTHING about what you owe. They will only accept you for their program if they can help you get paid out of debt within a 5 year time frame. They have a little bit more power and flexibility in getting your interest rates lowered, and lower payments set up because of their status as a credit counseling agency. Make sure you ask lots of questions and understand all the terms of the program.
5. Usually, the fact that you are using a credit counseling agency will show up on your credit report WHILE you are contracted with them. This will prevent you from getting new credit during this time and will affect your credit score. On the other hand, if you have no other options, it WILL help you get your debt under control!

Good luck

]]> By: mccray_51 http://www.reducecreditdebt.info/do-credit-counseling-agencies-debt-reduction-really-work-2/comment-page-1/#comment-1773 mccray_51 Wed, 11 Feb 2009 12:30:41 +0000 #comment-1773 In the long run no. I deal with credit issues with my borrower's on a daily basis. I find that if you ever plan to buy a home bank and lender underwriters consider counseling agencies in the same light as bankruptcies. If you decide to use this service make sure you choose a reputable company. Some have been known to take a client's money and fold up over night leaving you in worse shape than when you started. Late pays - I have seen ficos destroyed by these companies because of late pays. If I were you I would do your homework before making this decision. Good luck In the long run no. I deal with credit issues with my borrower's on a daily basis. I find that if you ever plan to buy a home bank and lender underwriters consider counseling agencies in the same light as bankruptcies.

If you decide to use this service make sure you choose a reputable company. Some have been known to take a client's money and fold up over night leaving you in worse shape than when you started.

Late pays – I have seen ficos destroyed by these companies because of late pays.

If I were you I would do your homework before making this decision.

Good luck

]]> By: drew_canole http://www.reducecreditdebt.info/do-credit-counseling-agencies-debt-reduction-really-work-2/comment-page-1/#comment-1774 drew_canole Wed, 11 Feb 2009 12:30:41 +0000 #comment-1774 I have personally used a company that helped eliminate some debt. They were able to negotiaite for 20 cents on the dollar. Check them out. http://www.waterfieldcredit.com. I have personally used a company that helped eliminate some debt. They were able to negotiaite for 20 cents on the dollar. Check them out. http://www.waterfieldcredit.com.

]]> By: Jer T http://www.reducecreditdebt.info/do-credit-counseling-agencies-debt-reduction-really-work-2/comment-page-1/#comment-1775 Jer T Wed, 11 Feb 2009 12:30:41 +0000 #comment-1775 Start by looking around a good credit counseling company, and not become a victim of one of the various credit counseling scams that are prevalent today. Do not be misled by any ad that assures you quick fixes for your credit report. This is an impossible promise. Instead search for a honest company accredited to Consumer Credit Counseling Services. Then fix a meeting with a professional credit counselor, and apprise them about your debt situation. Do not omit anything as they will require the entire information to draw up re-payment plan according to your situation. http://debts-to-wealth.com/category/Credit-Counseling.html Start by looking around a good credit counseling company, and not become a victim of one of the various credit counseling scams that are prevalent today. Do not be misled by any ad that assures you quick fixes for your credit report. This is an impossible promise. Instead search for a honest company accredited to Consumer Credit Counseling Services.
Then fix a meeting with a professional credit counselor, and apprise them about your debt situation. Do not omit anything as they will require the entire information to draw up re-payment plan according to your situation.
http://debts-to-wealth.com/category/Credit-Counseling.html

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