Credit Counseling Services

[NYCDiane]

Hi all!

I've fallen into some financial problems and I want to get them resolved.

I had several issues and had to stop paying on my credit cards back in September. I've since started getting things straightened out and have already paid off 3 of my small balance cards and am in the process of paying off a 4th (paying in full, not doing settlements).

I now have several large balance cards that I want to pay in full. I don't want to do debt settlement nor do I want to file bankruptcy.

Can anyone give me suggestions?? Should I try to negotiate with the creditors myself? Or should I go with a CCCS? If a CCCS, how do I choose a legitimate one? I found one online this morning and they want a $35 monthly fee and a $25 start up fee. Does this sound right?

Any advice or input is greatly appreciated!!!!!

 

[RitaE]

My suggestion would be to stay with an Agency that is a member of the NFCC (National Foundation for Credit Counseling) and is accredited by the COA. Many of these CCCS agencies and will be associated with local United Ways and have low fee schedules.

http://www.nfcc.org/index.cfm

 

[HippieChickadee]

My suggestion- all seriousness- open up a savings account and put WHAT YOU CAN into it every paycheck ($50? $100? More is better)

DO NOT pay anyone on payments.

You can either save up a good amount and call them and ask them to take it to be paid off IN FULL or they will have to just wait if they wont take what you have. DO NOT give them payments unless you are caught up and wont incur more fees.

 

[kathie859]

Hi all!

I've fallen into some financial problems and I want to get them resolved.

I had several issues and had to stop paying on my credit cards back in September. I've since started getting things straightened out and have already paid off 3 of my small balance cards and am in the process of paying off a 4th (paying in full, not doing settlements).

I now have several large balance cards that I want to pay in full. I don't want to do debt settlement nor do I want to file bankruptcy.

Can anyone give me suggestions?? Should I try to negotiate with the creditors myself? Or should I go with a CCCS? If a CCCS, how do I choose a legitimate one? I found one online this morning and they want a $35 monthly fee and a $25 start up fee. Does this sound right?

Any advice or input is greatly appreciated!!!!!

CCCS thru United Way is often free, they may request an optional donation but there's no pressure. CCCS can negotiate lower interest rates on your behalf and when I worked in credit services for a large company, we never rejected CCCS when they requested a lower rate and a payment plan.

Good luck, OP! It shows incredible personal integrity to want to deal with your financial issues with honor and responsibility.

 

[NYCDiane]

My suggestion- all seriousness- open up a savings account and put WHAT YOU CAN into it every paycheck ($50? $100? More is better)

DO NOT pay anyone on payments.

You can either save up a good amount and call them and ask them to take it to be paid off IN FULL or they will have to just wait if they wont take what you have. DO NOT give them payments unless you are caught up and wont incur more fees.

I do NOT want to do debt settlement! I spent the money using the credit card and I want to pay it back. I knew going in there would be interest rates, etc so I won't use that as an excuse to do a settlement rather than pay in full.

My best case scenario would be to save up and be able to call them and say "please remove all late/overlimit fees and I will pay in full now" and then pay the amount I owed when I went into delinquency. This scenario is unlikely to happen, though, because of the amount I owe and the number of cards (it would take a few years to do it this way and, by then, they would be with collection agencies, etc)

 

[NYCDiane]

My suggestion would be to stay with an Agency that is a member of the NFCC (National Foundation for Credit Counseling) and is accredited by the COA. Many of these CCCS agencies and will be associated with local United Ways and have low fee schedules.

http://www.nfcc.org/index.cfm

Thank you!! Will definitely look into this!

 

[NYCDiane]

CCCS thru United Way is often free, they may request an optional donation but there's no pressure. CCCS can negotiate lower interest rates on your behalf and when I worked in credit services for a large company, we never rejected CCCS when they requested a lower rate and a payment plan.

Good luck, OP! It shows incredible personal integrity to want to deal with your financial issues with honor and responsibility.

Thank you! I will look into the UW as well.

 

[SarahKate]

I did CCCS many years ago and had a great experience. Yes they do charge a monthly fee but they also work to greatly reduce or even eliminate interest. They have to charge something for the service, and I don't think a service fee equates their services to a scam or anything like that. I do recall being advised to use a CCCS office about 30 miles away instead of in my hometown, so it seems like maybe some offices are better than others. They provided counseling to me and even free seminars, such as first time home buying. It was well worth the fees and I got myself out of debt much more quickly than if I had done it on my own.

 

[trip]

I do NOT want to do debt settlement! I spent the money using the credit card and I want to pay it back. I knew going in there would be interest rates, etc so I won't use that as an excuse to do a settlement rather than pay in full.

My best case scenario would be to save up and be able to call them and say "please remove all late/overlimit fees and I will pay in full now" and then pay the amount I owed when I went into delinquency. This scenario is unlikely to happen, though, because of the amount I owe and the number of cards (it would take a few years to do it this way and, by then, they would be with collection agencies, etc)

I would also to ask them to remove any late payments from your credit report and have them put in writing.