credit counseling services

Discussion in 'Budget Board' started by tiff211, Mar 30, 2005.

  1. tiff211

    tiff211 DIS Cast Member<br><font color=blue>Was busted by

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    I called a place on a recommendation to ask them a general question about my credit report and of course they gave me their whole spiel and asked if I wanted a free debt analysis. After a long "interview", they said they could have my interest rates lowered on my credit cards and have my debt eliminated in 3 years and my credit would be restablished. Has anyone done anything like this? Please share any advice. It seems too easy. Why wouldn't everyone do this?
     
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  3. EthansMom

    EthansMom <font color=red>spare yourself from asking me to d

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    You can often get your rates lowered on your credit cards by calling and asking to have them lowered. If they balk at lowering your rate, threaten to transfer the balance to another card. This tactic works best if you have been paying on time.

    You can pay off your credit cards completely on your own using the snowball method:

    First, stop using your credit cards. Take them out of your wallet and leave them at home. (I've heard of people who freeze them in a block of ice to make sure they have to think before using the ccs.)

    Second, pick either your card with highest interest rate or with lowest balance. Pay minimum on all other cards, but put every month, put extra money toward your chosen credit card bill -- you may have to work to figure out somewhere to cut back in order to get the extra money, but it's worth it!

    Then, when that credit card is completely paid off, take the money you had been putting toward it's bills and add that to your payment on one of the other cards. And when that one is paid off, use all of that money to pay down the next card. Etc., etc.

    This method also works well to pay off other debts. We've paid off thousands of dollars of debt in the last few years using the snowball method.

    Good Luck!
     
  4. Bbbethei

    Bbbethei Mouseketeer

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    I am very familiar with credit counseling and it is not right for everybody. Most people who enter a debt management program have high interest rates and are past due on their accounts. If you are current on your accounts then your payment might even be higher than usual.

    I would be careful about transfering your balances however. Often times it is only for a limited amount of time that the interest rate is lowered. Additionally, opening new accounts and closing old ones can actually lower your credit score because a portion of it is based on the length of time your credit has been established.

    If you have any questions, please PM me.
     
  5. MickeyMonstersMom

    MickeyMonstersMom DIS Veteran

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    Be aware that some companies that claim to improve your credit are actually scams. Consumer Credit Counseling Service (CCCS) is reputable and does a great job. However, going through a service like this to lower interest, payments, etc., can show up negatively on your credit report.
     
  6. ktink

    ktink <b><font color=f95602>Member of the 'Jambo! WildBu

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    This is very true and the effects can lower your credit score very rapidly and may do more harm than good. I work in the loan dept of a bank and see the effects that some of these agencies can do. Just check into and the snowball way of paying is an excellent idea. We have also done this and managed to pay off quite a bit this year alone. Good luck.
     
  7. Rhonda922

    Rhonda922 Freakin Family Guy is Freakin Awesome!<br><font co

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    I used credit counselling and was able to finally pay off my 3 cards just within the past couple months. When I sent in my last (and final) money order, I was so happy I could scream!! It was a great feeling to finally be done with it.

    :cool1:
     
  8. welovedis

    welovedis Can't wait to be back in the WDW!

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    I highly recommend Mary Hunt's Website called Cheapskate Monthly

    As other's have referred to, the "snowball" method of paying off your debts really does work. Check out her section on the RDRP (Rapid Debt Repayment Plan) which is essentially the same thing.

    Good luck!
     
  9. cbrfan

    cbrfan DIS Veteran

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    This is very true. There's so much competition between credit card companies these days that if you have halfway decent credit they're beating a path to your door. I've found them ready to deal to keep your business. My DD once got them to remove a $29 late payment fee by telling them it would have been paid on time but she didn't have a stamp. :confused3 I know, but it works for her. :blush: So call your current companies and ask them to reduce your interest rates or you'll cancel and go to another company. Another suggestion...if you have a car loan or other consumer loans, check your credit union or other financial institutions. You can sometimes refinance for a lower rate. It never hurts to ask.
     
  10. Focusdude

    Focusdude Takin' on the jellies!

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    Having used a credit counseling company for about 6 years - I would highly recommend it! Some of my cards went down to a zero percentage rate - and were paid off quickly. Also, the fee that I paid to the company (I think it was $2 per account - per month) was deductible on our taxes.

    It was the best thing we ever did for our credit - we also learned a big lesson about credit that we will pass on to our kids!

    Good luck!
     
  11. jenr812

    jenr812 <font color=deeppink>I'm wondering how outta hand

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    Which company did you use?
     
  12. Focusdude

    Focusdude Takin' on the jellies!

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    The company we used changed names several time - it was Genus Credit Management when we finished!
     
  13. deltachi8

    deltachi8 Smells of rich mahogany

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    Be careful - Credit COunseling Services can be seen as a negative on your credit reports and it will be listed.

    Check out www.creditboards.com for some great information.

    With the help of those boards i was able to fix my credit reports AND pay off my cards myself.

    Good Luck!
     
  14. tiff211

    tiff211 DIS Cast Member<br><font color=blue>Was busted by

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    Went on this site. I love it. I am thinking of just using this as a site to repair credit and get out of debt. I will use the same time frame the credit repair agency quoted me of 3 years. Hope to do it sooner.

    Hey the way I see it, I didn't use a travel agent to plan our trip to WDW, I used this site....kinda the same idea, right? ;)
     
  15. deltachi8

    deltachi8 Smells of rich mahogany

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  16. mikess

    mikess Big Papa

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    The news report was on all the news services this morning and there are a lot of other frauds out there. Unless you are close to bankruptcy, I would not use them. It does show up on your credit report.

    You can lower the interest rates just by calling. I just lowered mine from 14.99% to 6.99% just by calling and asking.
     
  17. jenr812

    jenr812 <font color=deeppink>I'm wondering how outta hand

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    Just wanted to say hi! I'm a former Buffalonian :flower:
     
  18. LisaNJ25

    LisaNJ25 DIS Veteran<br><font color=aqua>I paid $300 back i

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    I have been using Genus.org for 5 years... When I first started I had alot of cards. They were able to stop the interest on a few of them and reduced others. My credit got alot better and stupid me fell back into bad patterns.. I now only have 1 bill left with them.

    I have never had any problem sin the past years, everything has always been paid on time. If you have any more questions please ask.

    Their website is www.genus.org.

    It did show up while I was paying them on my Credit report but after they were paid off it was removed. I also wanted to add that I have been able to get 2 car loans since being with them.
     
  19. bartty

    bartty Mouseketeer

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    We used cccs and got all of our debt paid off in 3 years. First, you have to cancel all the accounts they are managing and they do lower interest and the payments are feasible. But I think their fee was $29 and after all of our debt was paid off we tried to get a car loan. Figure hey no debt should be easy to get a loan....Wrong!! Apparently it showed up on our credit report, it did I checked, says account was managed by credit counseling service and caused my score dropped to below 500!! So now we only have one cc -disney visa- and are trying to rebuild my credit.... I wish they told me this before hand, if I had known I would have never done it. Hope this helps.
     
  20. my3kids

    my3kids <font color=blue>Helpful Cruise Board regular!<br>

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    Didn't I hear on Dave Ramsey that these services look as bad on your credit report as declaring bankrupcy? Maybe I didn't hear it correctly, but I would definatley do some research before signing up.
     
  21. mikess

    mikess Big Papa

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    I have heard that too from other sources. Some even said that bankrupcy may be better.

    I would try talking to a financial advisor before bankrupcy or using credit counseling service. Some churches have financial advisors on staff that you can use for little or nothing.
     

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