As long as they don't charge you money. I actually use the Dave Ramsey Money Makeover plan. And I'm much happier and my creditors are happy too. www.daveramsey.com It is not really an instance fix but long term planning.
DaveRamsey.com
I second daveramsey.com. Stay away from any debt consolidation, mediation, credit counseling, etc. Dave Ramsey is amazing and can offer do-able solutions to any financial situation. I know when money is tight...or non-existent...you try not to spend on anything extra, but you have to get The Total Money Make-Over or Financial Peace (Although I am not sure the latter is still in publication). Go to half-price books or look on Amazon if you can wait a few days. The return on that small investment will amaze you. I know first-hand how desperate you feel in tough financial situations. But, just PRAY, remain calm, check out daveramsey.com, read the book, make a plan and then work that plan. It will all work out, and if you use Dave Ramsey's snowball plan, you will feel so accomplished in solving your financial situation. Good luck, and God Bless!
We went through CCCS which then became Money Management (www.moneymanagement.org). We have one year left and we will have our debt minus cars and house paid off! For us it did not lower the monthly payment, but for some it does. What did happen is the interest was lowered and we were able to get all our debt paid off in less than 5 years where at the rate we were going it would have been 45 years. This really helped us and your monthly statements are still sent to you so you can track the payments and make sure everything is being done correctly! It also hasn't hurt us on our credit report in fact our scores have been raised while doing this. Plus, we moved and totaled a car so we qualified for a new house and car with no trouble!
Hi Carri,
I haven't used it, but I would beware of it and avoid it if possible. Many of those agencies are a scam. If you must use one, contact Consumer Credit Counseling, not one of the agencies that advertise. They are well known to be reliable. They can help you if you're desperate. Few people know, however, that using a program like this has a horrible effect on your credit rating--it's as if you declared Chapter 13 bankruptcy.
I would highly recommend you listen to (and possibly call)Dave Ramsey from 1:00 - 4:00 pm on AM 571, KLIF on weekdays. He is a money guru who helps others. I like to think of him as a Christian Dr. Phil with money. People call in with their financial problems, and he walks them through the steps to solve them. He had been a millionaire 20 years ago, then lost it all and went hrough bankruptcy, then began a program to help others understand and overcome their financial issues. Because he has been there, he deals with people with warmth, grace, humor and encouragement
He has a huge ministry now, with a show every night on the Fox Business Network, and has written two wonderful bestsellers, "Financial Peace", and "The Total Money Makeover." If you can, get a hold of the latter--it's very specific about what steps to take to get out of a mess. His seminar series, "Financial Peace University" is held at churches all over the country once a week for 12 weeks. If you look on daveramsey.com you can find out where they're held near you--you'd be surprised how many there are! If you can't listen during the day, I think you may be able to listen to the show online, but I'm not sure of that.
He has a very common sense approach that actually works. Sorry to sound like an advertisment (I really don't work for them), but this program is huge and works. We went to see him in Reunion arena a few months ago, along with many thousands of others.
Hope this helps! I know how scary this stuff is--been there, done that. Hang in there--it can get better. I'll be praying for you.
I would declare Ch13 before I would go with a Debt Mediation company.
JME
Steph
I agree with the advice of using a well known company like Consumer Credit Counseling (CCC). It takes a couple months to get the program set up. That is the time frame that hurt our credit. When the creditors call you to pay them, send them something, even if you can not send the minimum; then the creditors know that they are not going to have to write you off as a loss, and may work with you better. The CCC may say that is not necessary, but hindsight told us otherwise. Fortunately, Our credit was really good (we just owed everyone money:( ) before using the program, so the start up time did not hurt us too seriously.
Listening to Dave Ramsey is excellent advice!!
I agree with most of the responders: Don't go to a for-profit credit counseling business. If you decide to go with a credit counseling service, go with a non-profit like CCCS (now as one responder said is www.moneymanagement.org). My husband and I did so 17 years ago when we had $45,000.00 combined debt when we married. Some companies stopped the accruing interest, which greatly helped. We paid the debt off in 3 years. It was on our credit report for many years, but it never seemed to seriously damage our credit. We have excellent credit now and all along we have been able to secure loans if needed, buy cars, etc.
I really like what many said about taking the Dave Ramsey course, although I was not personally aware of him. Sounds like he has a sound program. Use your caller ID, stop answering calls, and if any are calling your work, you can ask them to remove that number from they records. If they don't; you can report them to the appropriate agency.
Another good source if you plan to do it on your own is "Pay It Down! From Debt to Wealth on $10 a Day" by Jean Chatzky.
Good luck to you. We have been there and empathize with you. Bless you for reaching out for a plan to get to a much better place.
Call Consumer Credit Counseling Service (CCCS), they have an office in the metroplex. They are a nonprofit company, versus these private consolidation companies that often leave you in worse condition than you started in.
Hi Carri,
I know a lot of people have said so many things so you are going to have to decide what is going to be best in your situation. I would (and have) started with the essentials. Cut back wherever you can. Start with some of the most common things like grocery, electricity, water, and phone bills. We have done a major overhaul in our home and we are probably saving about $300 a month. It just takes a little time and planning. Next (this should really be first) work with your mortgage company and the financing company for your car. Mortgage companies (the good ones)are making a great effort to work with customers. The gov't has really cracked down on them to do as much as possible to slow down this foreclosure rate. They should have a plan that can help you either skip a payment or catch up on your mortgage. Also with your car, finance companies can offer a certain amount of extensions over the life of your loan. Contact them to see how they can help. This will allow you to skip at least one payment. Believe me it cost them a lot more to repossess your car than working with you. The credit cards and unsecured loans...let them go if you can't afford to pay. You can later settle those with the creditors...or look into a company called Credit Solutions to settle the debt for you. I like Dave Ramsey as well, but have not done his courses, but he has very very good advice. The key to all of this is get yourself out of as much debt as possible and don't go back! Debt free living is the way to be. We have been brainwashed about credit and consumption which leads us to debt. It's just a revolving door. Watch the movie "Maxed Out" and it will change your whole view on things. I would avoid bankruptcy or CCC as much as possible. God wants us to be good stewards of our money. I pray you have much success with this season of your life. Be Blessed! Felicia
How about credit consumer counseling. I heard they were able to help alot. Or maybe the family you work for would assist in some way. Alice
I used Consumer Credit Counseling a few years back in Washington state and it worked out great. They'll have you bring in every debt you owe and will consolidate the amount and work out a monthly amount you can afford. The fee for me was only $10 per month. I think it's the same for them all. They contacted all of the companies and I only paid one check per month to the Credit Counseling company and they paid the bills. You have to give up all your credit cards during the process but it's worth it because it saves your credit. These credit agencies are owned by the credit card companies who don't want to see you default on your debts so they try to help with these agencies. If during the process you find the amount is too much per month they'll re-work it so you're sure to have enough to live on every month. My amount was reduced when I needed more for rent. The website for your area is http://www.cccs.net/. Good luck!
Hi Carri! Please check out DaveRamsey.com before you do anything drastic!!! He is my Hero! I am strongly against consolidating debts, because the interest you pay for each debt is usually a different rate. In order to fully benefit, you really need Dave Ramsey's complete FPU course (Financial Peace University). If you don't have the money, try to find a kind sponsor. Here is a snap shot of Dave Ramsey's advice: Make a written monthly budget (your income and bills). After you met your basic needs (prioritize your bills: Housing, Utilities, Food, Transportation), establish a Pro Rata Debt list (in descending order) and send this list with a certified letter to all your creditors. Let them know, you are willing to pay, and how much you are able to pay, each month. Use the snowball system to pay off your debts (start with the smallest debt first). Get a cheaper car (until you can afford the better model). Stay away from new debts, especially credit card debt. Stick to the above and stop spending what you don't need. Hang in there! Believe me: There is hope! I will pray for you and God bless.
hi carri
my husband i use CCCS and they have done a great job for us. We were in debt up to our ears and now only have 1 1/2 of 4 years and we'll be out of debt!!! they took care of the creditors calling us non stop and now just pay them one lump sum!!! :) i love them!!
good luck, hope you find something that works for you, i know how you feel being in debt....its a terrible feeling!!!
sheryl
I would recommend CCCS (consumer credit counseling service); they have offices in McKinney, Plano, and Frisco just to name a few. http://www.cccsnct.org/ They are non-profit, but do charge $30 per month if you use their services and a one-time set up fee. In most cases they can get your interest rates reduced AND payments reduced. You pay them a set monthly fee and they distribute payments to your creditors for you. They are very friendly and very aware that "life happens" and do everything possible to alleviate some of the stress associated w/ financial crises. Also, remember Angel Food Ministries. This is a great way to make the most of your grocery budget. http://www.angelfoodministries.com/
Hi Carri!
Some of the debt mediation and consumer credit agencies are scams. I would be very careful.
I recommend Dave Ramsey at DaveRamsey.com. You can check out his endorsed local providers and counselors that are trained to deal with creditors too.
Good luck and God bless!
Carri,
My husband and I used NATIONAL FOUNDATION FOR DEBT MANAGMENT.
WWW.NFDM.ORG we didn't have over 10,000 in debt or own a house so no other company would help us unless we went to a bank and got some kind of consolidation loan. That is a form of bankruptcy and we would have lost the car that we were paying for.
At NFDM they treated us like people who needed help-not morons who couldn't handle our business. They were friendly and helpful, available by phone and internet 24/7. They were just the greatest company and helped us to get out of debt in 3years, paying the payments and fees to the company's directly would have taken us over 25 years.
I'm sure they would be able to help you, and last time I checked they covered any kind of debt, credit card, medical, or house or vehicles.
Good luck
Jae
We used David Ramsey.....i think...he pretty much teaches you how to pay down debt with the snow ball approach. Where you pay off one bill and the money you were using to pay that off you pull that into the next bill. I am not sure but i do know that you can look him up on line...might be under Dave Ramsey. Good Luck to you and God Bless..Heather
I haven't tried it but anything to do with finaces I would look up on Dave Ramsey's website! He has a radio show AT 570 KLIF at 1pm Monday thru Friday.
Barbara
I used a counseling service several years ago when my credit card debt reached $20K. I think I had about 8 credit cards then. They made it easy, I just sent them one payment each month, and they paid the creditors. They also got the interest rate reduced and on one, eliminated.
The bad part was that it gave me bad credit on my report, even though I was never delinquent. You can also look into filing for bancruptcy if you have a huge amount of debt, but as a last resort. Or you can marry a rich guy and have him pay your debts, and then write it into the pre-nup. :)