I get the feeling from talking with Take Charge America (a nonprofit debt management/credit counseling company) that my creditors will be more willing to work with them than they are with me. What I am asking from my creditors is realistic (waiving of some fees, lower interest rates, etc.) however they are not willing to cooperate. According to Take Charge America, they will be able to consolidate my payments into one and submit proposals to my credit card companies and lower my rates and get me out of debt in just over three years. Is this the case? Are credit card companies more willing to work with a debt management Plan program than they are with me? if so, why is that the case?
no dont do credit counseling. The problem with credit counseling is that it’ll take you 5 to 7 years to complete since it can only reduce a minor portion of your interest rates. According to Consumer Reports, the credit counseling dropout rate is 79%! Unfortunately, many of these people end up doing bankruptcy. The dropout rate is so high because credit counseling gives people monthly payments as the same minimums they were struggling with and since it only reduces interest, it barely reduces your debt. Another problem with credit counseling os that it appears negatively on your credit report telling other creditors you were unfit to mage your debt and had to hire a credit counselor.
i personally used debt settlement they lower your monthly payments and cut your debt by about 60%. they work on lowering your principal balance. best choise so far.. here is the company i used.
www.debtfreeleague.com
Debt management and Credit counseling are 2 completely different things. So make sure you know which they are offering.
Debt managment involves up front fees, and usually will not help.
Credit counseling like Consumer Credit Counseling Service are good.
The reason why the Credit card companies will not work with you is that you are dealing with a customer service department.
The reason why Credit counseling works is that they usually (CCCS Does) have a set contract with each of the credit card companies.
References :
no dont do credit counseling. The problem with credit counseling is that it’ll take you 5 to 7 years to complete since it can only reduce a minor portion of your interest rates. According to Consumer Reports, the credit counseling dropout rate is 79%! Unfortunately, many of these people end up doing bankruptcy. The dropout rate is so high because credit counseling gives people monthly payments as the same minimums they were struggling with and since it only reduces interest, it barely reduces your debt. Another problem with credit counseling os that it appears negatively on your credit report telling other creditors you were unfit to mage your debt and had to hire a credit counselor.
i personally used debt settlement they lower your monthly payments and cut your debt by about 60%. they work on lowering your principal balance. best choise so far.. here is the company i used.
http://www.debtfreeleague.com
References :
http://www.debtfreeleague.com