Credit counseling

[dhuba]

I just found out this week that my sister is in some very serious debt troubles. She and her husband both work, yet they can't keep up with all the bills she has. She always consolidates, but gets herself in the same trouble and now it's totally out of control. I want to suggest some credit counseling, but I haven't a clue about where to find a reputable service. She is in southwestern PA. Anybody have any suggestions? Should you be paying for a consultation? What clues should she look for to know it is a scam. She makes me so mad, but I could hear the desperation in her voice. Thanks.

 

[SarahKate]

I can vouch for Consumer Credit Counseling Services. They are one of the "legitimate" ones, not one of these scammy ads that you see on TV. I will tell you that there are certain local branches that are better than others, but it is a non-profit company.

I got myself into trouble many years ago when I was younger. I was referred to CCCS, who conducted a phone interview w/ me to assess my debts. Once they ran all the numbers, they came up with a monthly payment. As soon as I signed up with them, no more creditor letters or phone calls. I also had to agree NOT to use a credit card while on the plan. I sent one payment in to CCCS, and they paid the creditors. The creditors either waived interest or significantly reduced it (they had the choice). There was a fee, but it was incorporated into the monthly payment and I think it was pretty small.

Although it's been a long time, I still hear about them (on the Disboards too!) and would definitely recommend she look into CCCS!

 

[smokeyblue]

I second Consumer Credit Counseling for all the reasons the PP mentioned. It can be done over the phone. My parents used them during an employment scare and really liked the service. I used them too, but the solution the proposed wasn't doable for me; but the counseling was free and I was not obligated to do anything. Another service I know that the UDSA Rural Development office recommends is Green Path.

 

[dhuba]

Thanks for the replies. I will suggest that to her if her latest home equity loan application doesn't get approved,which she is thinking it probably won't. She already tapped alot of the equity in her house already. Luckily our housing market hasn't suffered like many parts of the country.

I am always amazed how two people raised by the same parents can be so different. She is my older sister yet, but totally irresponsible with money. The best part is she has nothing to show for all the debt. I just can't figure out what she is spending it on.

 

[njmom47]

My ds is currently using Novadebt. They do charge a small monthly fee (I think he pays $19) but compared to all the interest he isn't paying, I feel that's a great savings. He is almost there (less than 4 payments on his last card) and it was a difficult 4 1/2 yrs but things will be much better when he's done.