Help!!!!!

Updated on May 05, 2007
M.S. asks from Advance, IN
30 answers

Hello everyone! I need some really honest suggestions. My husband and I were thinking about going to a credit service "CCC". We were wanting to know thoughts about the company. Did it help anyone?? Is it worth the ding on your credit to assist you. We are trying to weigh our options as to which would be better to try to get our selfs out of this mess or just give in and go to get assistance. We know that our credit has been affected already! So, we aren't sure on what to do. We really need some personal experiences. PLEASE HELP!!!Thanks! You can email me personally also! THANKS

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C.M.

answers from Louisville on

Hello, my dh and I went through the same thing a few years ago. I ended up buying one of those ebooks that gave a plan and it helped quite a bit. I can't remember which one, but hang in there!

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R.

answers from Indianapolis on

Don't do it, CCC is owned by the credit card companies!! Any good financial advisor will tell you not to use them!! Find another way to get your finances in order, find some "self help" books rather than wasting your time and money on CCC!!
They are a rip off!!

1 mom found this helpful
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A.N.

answers from Lexington on

Don't feel like you are alone, everyone has been at this point at one time in their life. My husband and I use a book time and again as a reference to how we spend our money. It's called "Making your money count". A good book to use to just set up a plan to get out of debt is any of Dave Ramsey's books. Don't be discouraged, it will feel like you aren't making much progress in the beginning but you'll get there if you just put your head down and barrel through! Good Luck!

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J.W.

answers from Evansville on

I don't know about that. But I have heard that the best way to get your bills down is to concentrate on the smallest one first. Any time you can(even if it's hard) pay extra. The first bill is the hardest. Then go to the next in amount and go after that with the money as extra that you used to pay the other bill with. Keep going until it is like a domino effect. The first takes the longest, and we are about half way through our first:)

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D.T.

answers from Indianapolis on

I wouldn't use an outside service until after you've done everything you can yourself. They don't really do anything you can't do yourself. There are alot of good books (get from library - don't buy a book about saving money!) and free websites that talk about getting out of debt and improving your credit. The process is simple, but it's hard to put into practice.

You can call your creditors yourself, explain the situation and ask for a reduced interest rate. Most will be helpful. Pay off the higher interest cards/loans first. Move the balance from a higher card to a lower card - but don't do it too often because this can also raise a red flag if you just shuffle the balance around every few months. You need to work out a budget and separate needs from wants -- very often people's "needs" are actually wants. You have to be ruthless even if it means no high speed internet, cell phones or cable tv. Try websites like lowermybills.com to find the best deals on things like cell phones. Two good books are Tightwad Gazette and Living Well on a Shoestring. They are full of good ideas for saving money, reusing items and cutting your utility and grocery bills.

Anyways... we went through this right after we were married 6-7 years ago. We gave ourselves a year to get on track before bringing a company like CCC into it. So glad we did. Within 5 months we had tweaked the budget so almost half our income was going to pay off debt. All the interest rates were lowered, too. After the first year, we had made a HUGE improvement and decided not to contact CCC. One good thing I don't regret (although it was HARD) was that for 2 years after getting all the debt paid off (took 2 years to get out of debt), we continued to live the same way. Instead of putting that large chunk of money to repay debt, though, we just put it into savings. We weren't used to having it, so we didn's miss it.

It's hard, but if you're determined and have some long term goals in mind (what will you do once out of debt? We saved for 3 years and bought a new ski boat with cash!) you can do it!

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A.T.

answers from Lexington on

Hi!

I have not personally used it, but two of our friends have. I don't know the particulars, but they seem satisfied and ok now (I am a realtor and am actually currently working with both of them on purchases without any issues). It was a few years ago that they each used them.

Maybe another option would be to talk to your bank or a loan officer. They should be very knowligible about credit etc and if they can help with refinancing a car, home, or with a signature loan etc.

Good luck!
A.

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J.K.

answers from Lexington on

Hi! I used one of those credit services before I got married. It really did help to get my debt paid off much quicker than I could alone, but there are some drawbacks. You have to pay them a monthly fee in order to use their service, and your credit score will be lowered as well.
I would actually recommend a book by Dave Ramsey, it is wonderful. It has helped my husband and I so much, just by following the program he outlines in the book. It's called The Total Money Makeover, I would highly suggest reading it before you signed up with the credit service. Also, he has a website with lots of free advice: www.daveramsey.com. I hope this helps & good luck to you!

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K.B.

answers from Indianapolis on

Hi there,
I don't know how much debt you have but my hubby and I did something a bit different. We had quite a bit of VERY OLD debt, mine from my ex-husband that he never paid and some he had he owed and some he co-signed with an ex gf.
Well, we contacted this company and we've been working with then for about 2 years now.
We havne't had to pay anything off, he had some judgements which he did pay (2). They have slowly removed tonz of things from our credit. I was unwilling to pay a LOT of things bc I had a divorce decree stating my ex was responsible for SO MUCH! They have really helped with stuff, if you are willing to pay for things too then even better.
Chek them out, my hubby used to do mortgage loans and referred a lot of clients there who were later able to finance homes.

They're called I3 Solutions - Tell them Chad Lockhart (my hubby) referred you.
Client Services Division
i3 Solutions, Inc.
###-###-#### Phone
###-###-#### Fax
P.O. Box 949
McKinney , Texas 75070
____@____.com
www.i3solutions.net

You will not have to file a chapter 13 bankruptcy or anything like that.
Amy

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K.

answers from Lexington on

I can't say that I used "CCC" myself, but I know someone who did, and she had good results. I used another credit counseling agency (one that is no longer in existence), and I have to say that it helped so much. We are now out of debt (mostly) and were able to qualify for a decent home loan -- something we would have NEVER been able to do before. It does affect your credit, but at least your reports will show that you are attempting to pay off your debt, not just let it go. Almost all of our debt was on credit cards, though, and not student loans or other loans. When you're done with the program, it will look so much better than it does now! If you are literally unable to pay, or even only pay the minimums on high-interest credit cards, I do suggest you seek assistance...it will help to ease the stress on you.

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C.D.

answers from Louisville on

Hey.. I know it maybe a little to late but check out my website and you can work at home or do this on the side and make some extra cash! Join The Mom Team Today!
http://www.themomteam.com/cgi-bin/mom.cgi?id=ch514139&amp...

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S.C.

answers from Kokomo on

My dh and I used CCCS and it did us a world of good. Make sure to use CCCS (non profit) vs one of the "Ameridebt" type companies that ARE FOR PROFIT. They got our % lowered on 7 cards, lumped the payment together and paid it for us EVERY MO. NEVER missed one. I did pay them a volunteer fee only on months I could afford to (5-20) I didn't have to at all. It took 4 years to pay it all off, but well worth it. Yes, it does show that some of the debts were closed for "debt management", but better to see that with a 0 balance than consistenly 30/60/90 days late....THAT is much worse on a credit report!
Good luck and it is a great feeling to be able to answer the phone again!

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A.M.

answers from South Bend on

Hi there I can tell you this company is wonderful. I am still with them today. All the collection calls stoped. Things are tight but 1 out of my 4 cards is already paid off. This company is Christian based. If you are looking for a way to make some extra cash I can help there too. Do you like AVON? I do.
Would you like getting your products 50% off? Bet you think it cost a lot to start but it doesn't $10 is it. Call or email me I 'll tell you more ###-###-#### ____@____.com.

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S.D.

answers from Indianapolis on

Look on www.rtv.com they just did a story last week on companies that "consolidate" loans. I don't know if you can still find the story. I don't remember everything but it seems that I heard that there are government programs that cost little or nothing whereas private companies are not non-proffit and can cost you more in the long run. The person they talked to said spend the $50 it takes to meet with a financial planner for an hour. It can save you tons of money in the long run.
Good Luck!

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K.G.

answers from Fort Wayne on

I agree with those that said do it yourself if you can. It will help you in the long run because you'll be doing it because you decided to, not because someone is telling you to do it. The process will be more labor intensive, but I would think the liklihood of ever getting into a similar situation again would be pretty low.

Good luck, and remember that there is light at the end of the tunnel!

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K.W.

answers from South Bend on

I think the best way of cleaning up the credit is paying it off yourself. You can do the following yourself:
1. call the creditors that you owe and talk them down. Say like a credit card that you owe. I have talked them down a little over 1/2 of what I actully owed.
2. Pay off your little things first. say you have 10 things you need to pay off. send $5 - $10 each but the smallest one you send $50 or whatever it is you can talk them down to.
This will make it easier and look better on your credit. If you are behind and can't make the min. payments that they want you to just tell them "look this is what I can pay you a month until ..... then I can start to really pay you off." when that time comes you call them back and say "ok i am ready to pay you off. but can't do the $1000 I can pay you $400 for it" you will be surprised that is all that these other places do and you can do it your self. you just have to be strict when you talk to the places you owe. They just want money. I hope this helps some I have cleaned up my, my ex husbands, and my boyfriends credit doing it like this. and it didn't take long at all. good luck

For Your Pleasure Managing Regional Director,
K. W.
###-###-####
www.katiesparties.com
____@____.com

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J.C.

answers from Fort Wayne on

From what I understand, people end up regretting anything that shows up on their credit report that shows proof of not being able to take control of your own financial solutions. My husband owns a mortgage company, Guardian Financial, and he's always telling people to do everything they can to stay away from bankruptcy or credit counseling because it makes it really hard to qualify for any kinds of loans or lines of credit. I know one thing that I thought of right away, which is probably just from being around the whole mortgage scenario, is if you own your own home, could you refinance it and take out some extra cash? Or maybe take out a second mortgage? If you are available to take advantage of these options, feel free to call and get some advice from my husband. His name is Doug C. and his office number is ###-###-####. I know that a lot of people are struggling right now because of their loans being adjustable and are being forced into foreclosure because they can't afford their rising payments. Doug's been able to help lots and lots of people, so take advantage if you can.

I really do recommend calling all of the people you owe money to though, and working out some sort of payment plan with them with a lower interest rate even. Also, most loans and lines of credit will allow you to defer your payment once or twice a year. If you can do this, maybe you can pay the ones that won't, and within a couple of months, not be as behind.

If you really feel you have to call CCC, maybe call, but don't giveinformation and ask tons of questions. I think that you'll find that they mainly call your creditors and negotiate a smaller payment, which you can do yourself. This would save a mark on your credit report.

Hey! I'm adding on because I talked to my husband and he said that calling a place like CCC is looked at in the same way as filing bankruptcy to a bank you're trying to get a loan from. He said he tells people to NOT do it and that what they do is tell you that they'll take care of the stuff adn not make any payments and then they wait until your payments go into default and negotiate with the company for pennies on the dollar. They wait until it is at a point where the company wants to just get any kind of money that they can, but in the meantime your credit is being wrought through the ringer. He said don't trust them.

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A.S.

answers from Charleston on

I just went to this CCC in Dunbar, WV. They couldn't really help me. I have rather good credit, but have over $10,000 in CC debt. The reason they couldn't help was because my interest rates are still manageable. They have agreements with each lender and a certain interest rate that they can get. Basically the program shows up on your credit as a debt management program and it closes all your accounts. My interest rates were too low for the program to help, but for others who have interest rates that are out of hand or additional charges--I believe the program is worth looking into :)

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K.G.

answers from Lexington on

My family has faced dire financial straights and at one point declared bankruptcy 18 years ago. It was a nightmare...we finally got to the point where we rebuilt our credit but life has a way of pulling your feet out from under you...recently as in unforseen car repairs around $4,000 and a child who amputated his finger and we had to get it reattached...$30,000 and climbing. We looked into different credit solutions and I can say this from experience...bankruptcy is the last and I mean last option...we made arrangement with the credit card companies to accept a lower payment for a couple of months to help us try and work through some things. If you find that a credit counselor is the option you have available ...PLEASE...PLEASE...PLEASE...look them up on the better bussiness bureau website...it's free and when I was checking out a couple of compnaies the one that a friend reccommended had multiple complaints...some of these companies are fly by night places that take your money and leave you high and dry. Also go to the Clark Howard website to check out some financial options...I listen to him and Dave Ramsey who also has a website...they can reccommend honest counseling help...I know that this probably isn't very helpful but I hope it points you to a more informative decision.
Good Luck!

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J.C.

answers from Indianapolis on

I talked to creditors a few years ago when I was trying to clear my credit up some & was actually told that the better thing to do is pay a small part at a time to someone. what he had me do was make a list of all the bills I owed money on & how much I owed each one. then start at the top of the list, send that place some money from that paycheck, most weeks it was only $20 but it was something. then the next payday, go to the next one, do the same. on down the list. the reason he had me to do it that way instead of finishing one bill before going to the next was so that it showed up on the credit report as being reopened or being paid on instead of showing as being ignored.

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K.S.

answers from Indianapolis on

My husband and I were in a place many moons ago where we were way in over our head. What helped us by doing CCC was that the creditors stopped calling and that reduced alot of stress. They showed you how to shop within your means and why that was important. Today's soceity is all about instant gratification and to get what you want now and pay later. Not so smart but that's America!! Anyhow it did help us because we paid a lump sum to CCC and they dispersed the money accordingly. As for credit ratings it actually did not "ding" us that bad. We were still in CCC when we wanted to buy a house and just had to write a letter of explanation and it was not a problem. Its alot better than bankrupcy. Good luck!

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L.R.

answers from Evansville on

We went through a similar service 2 years ago and have just completed the program. About 3 months into the program, we found a program on the radio called the Dave Ramsey show. Locally it's on 1280 at 6,7 and 8 am. Check it out at Daveramsey.com also. But anyway, we paid extra into the CCOA program and finished in two years instead of three. On the show he doesn't recommend doing the program, but if you are already in it to work the "debt snowball" within the program. I found that once I got control of my finances with Dave Ramsey, that I spent a lot of time "checking up" on the CCOA people and making sure that my money was getting applied correctly. So, I could have done it myself without the monthly fee and additional damage to my credit. (You are treated as if you filed bankruptcy) My recommendation is to try to get control of your finances yourself using the Dave Ramsey program. You can negotiate lower terms with the cards yourself and the extra $40 or so in fees a month can go to reduce your debt. It is a scary thing, but you can do it!

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L.M.

answers from Fort Wayne on

Be VERY Leary. My husband did this prior to US and his credit is still terrible after nearly 6 years. You might as well go bankrupt because that is what future lenders see except you still have open accounts. Try talking to the lenders yourselves directly some will lower your interest rates if you close the account yourself. This helps you manage your credit and save on some of those fees. If they think you are on the verge of bankruptcy they are more willing to work with you because they want to get paid. but also ask about them settling on less amount because if they agree to this it may still tarnish your credit just be sure to ask ALL the questions. I know Catholic Charities has some financial credit counseling they just help you without ruining your credit. Check it out. Good Luck and a word from a been there done that DO NOT PUT YOURSELF BACK IN THIS SITUATION!!!CUT UP YOUR CARDS!! Keep only one that you pay off monthly. Good Luck Again

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K.M.

answers from Indianapolis on

I've been listening to The Dave Ramsey Show on 93.9 (Beat Debt ... Build Wealth) He says that these sorts of companies are BAD IDEAS. Horrible. And they will haunt your credit as if you filed bankruptcy!

For example: My sister signed a contract with "Ameridebt" (similar to CCC) & they NEVER made her first payment. She had never been late on a CC payment before, signed with AMERIDEBT & paid AMERIDEBT ... but they NEVER made that first payment to her credit cards. (Google Ameridebt & check out all the lawsuits!) She was THREE MONTHS into her "contract" w/ AMERIDEBT before the credit card companies started calling HER! (Think they cared about her contract with AMERIDEBT???) She noticed the payments were not being made before that & had called Ameridebt with her concerns ... they assured her it would be taken care of. "IT takes awhile to process through the system". By the time the CC companies started calling, it was too late. Not only was she three months behind ... she had to scrap together the payment money a second time (LATE, LATE, LATE), fight to get out of the contract w/ AMERIDEBT AND get her money back. Of course her credit rating took a nose dive in the process!!! I won't even go into the STRESS this caused on her & her family. (People had to GIVE THEM FOOD so she could FEED HER KIDS!)

True, her nightmare case is extreme but these kind of companies DO ruin your credit rating!!!

Call each company & ask if they will lower your APR. (I've done it myself & they HAVE done it for me! The worst they can say is 'NO'. In fact, I've been told "no" & told them I wanted to cancel my account ... I was transfered to another person & that person said YES! I paid them off & STILL canceled my account!) Then you tackle the one with the highest interest rate FIRST while making minimum payments on the others. When the highest interest rate one is paid off ... start on the next to highest, and so on. AND, most importantly, start listening to Dave Ramsey. He's on from noon to 3PM M-F here in the Indianapolis area. www.daveramsey.com

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P.M.

answers from Lexington on

As others have stated, I too have heard that it is as if you filed bankrupcy to use that sort of company. And I also recommend the Dave Ramsey plan. Someone else has already posted the web address here, but to sum it up, you first establish an emergency fund of $1000, then make a list of all your debts and put all the money you can toward the smallest debt first, when that is paid off then snowball that $$ to the next and so on...
You can also check with churches in your area to find one doing the Financial Peace study by Dave Ramsey.

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B.G.

answers from Fort Wayne on

They have REALLY helped us. I too was VERY concerned about it hurting our credit and they told us that it would only hurt our credit if we were renting, but since we own our home it won't hurt our credit at all, actually it will improve it because we won't be getting constantly hit with late fees and our cards will be getting paid off routinely. It has been a little expensive for us though and we have been using it for almost a year. We are almost debt free! Better a year than the 30 it would have taken us to pay it all off. You can at least talk to the credit counselor and see what they have to say and if you still don't feel comfortable then definatly don't do it, but hear them out, they really have done wonders for my family.

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M.C.

answers from Lexington on

I have looked into CCC and actually been approved. You have to go through a lengthy interview for them to decide if you are eligible. Then, they come up with a payment plan for you that includes $30 a month for them. As long as you are making the payments on time, you are a member, but you can quit at anytime. After you have made 3 or 4 ontime payments, your creditors begin lowering their interest rates. I decided not to go with them, as my balances did not match up with theirs and they were only going to save me about $5 per month. I know in the long run we would have saved a lot on the interest, but my problem is needing lower monthly payments now and $5 less just is not going to help.
Overall, I think that this is a great service. If you qualify and can meet the payment they set for you, then great!

M.

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M.S.

answers from Bloomington on

I haven't read the previous responses, but we are reducing our debt using Dave Ramsey's Debt Snowball Plan. Part of that is a loan we got at our credit union to consolidate our cc debt.

Check out Dave Ramsey's site because I'm sure he'll have info on the service you mentioned.

Good luck!

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A.C.

answers from Indianapolis on

After our daughter was born my husband was laid off, so we also got into a financial mess. I thought about CCC, but instead, I called our creditors myself and they were more than willing to work with us. We had several credit cards that we couldn't keep up with. They actually ended up offering us settlements on our accounts. If we agreed to pay the settlement they would write off the rest. This saved us thousands of dollars! I was really suprised at how easy it was. Of course it will show on our credit history that we made arrangements - but that looks better and will clean up faster than repeated late and missed payments. Hope that helps.

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T.B.

answers from Kokomo on

My husband I were/are recovering from a situation. We didn't do CCC, instead we used tax money and payed off what we could, with everyone else we owe/owed money to we called companies and worked out payment options. Most were very happy to just have the effort. I wouldn't talk to customer services either, ask for a boss. The bosses were easier to work with. If your credit is bad enough, possibly seeing CCC would help future lenders want to work with you because they see the effort. My husband and I also made a rule that every friday night, after our son goes to bed we do bills together. So far this has helped a great deal. Not just one of us is carrying the burden and we both know exactly what is going where. I wish you luck.

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K.S.

answers from Indianapolis on

My hubby and I used them and THEY WERE NO HELP!!!!! We were paying $520/mnth before going to them and we couldn't afford that, and they barely reduced our interst rates (by maybe 5% if that) and our payments were $540/mnth (they have afee u pay them) for 5 years, which broke down to $135/week. We signed and soon realized if we could not afford the $520/mnth what in the world made us think we could afford $540/week.. then they automatically withdraw it, so that hurt our other bills being paid on time, u know the one's that were more important then credit cards. There are others to use, so shop around and know all your options BEFORE u sign. Good luck, let us know.

P.S. I know alot of people say that ur credit cards will lower if you ask, but be prepared for them to say NO. We called (more than once on the large ones) and asked if we could lower our rates because we were on the verge of bankruptcy and instantly they said NONONONO!!!!!!!!! Most of the time they wouldn't even try to. We had over $20,000 in debt and had to file chapter 7 bankruptcy and kept our home, nd we feel we are in a much better place. Good luck!

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