Debt Consolidation

Two words for you. Dave Ramsey. I know he was already mentioned but if you can get anywhere to see him in video or get his books it really does work. Please try him first.

Debt consoldation is something that can go very wrong. If you choose to go this way make sure you do extensive research on the company you choose. Also just because they say the christain based, owned and operated, they still can create terrible issues for you.

If you have not made up your mind yet, I would recommend this. Go to the Library and check out a couple of books written by Dave Ramsey. We have been following his plan now for almost 2 years. When we started it looked like we would never be debt free. Now we are beginning to see light at the end of that tunnel. We have paid off 2 cards totally and have 3 more to go. It changes your whole perspective of shopping, spending money, and debt.

The best part about it, is you take control of your own debt. You dont pay someone else to do it for you. You know where the money is going, and it gives you a feeling of freedom to see it starting to disappear.

I'm also a Dave Ramsey follower! My husband and I have since last January have paid off $100,000 in debt (this included selling out home). We have another 10,000 to go...but will be totally debt free in a few more months! Despite downsizing and sacrificing... He is amazing! Check out Financial Peace University offered at many local churchs....Total Money Makeover book by Dave Ramsey. Google Dave Ramsey for his website!
Good Luck!

If your credit is already messed up and you are committed to never getting into debt again, it might not be too bad. I have done extensive research. Your credit will be screwed up until that final debt is charged off AND, until it's been 7 years and the old debts fall off. Even when a debt is settled for less than what is owed, it says that on your credit report. There have always been credit card companies willing to offer high rate cards to people that have less than perfect credit. But if a person is not willing to end that lifestyle forever, then these programs are not really worth the effort. If it's a matter of keeping the wolf away from the door, then that's another matter completely.

I for one have not been willing to enter a program like this because I enjoy my buy now pay later lifestyle. It am not committed to changing my ways. I am also not in trouble. But these things come in the mail offering to lower my payments. The reality is nothing close to what they try and make it sound like it will be. In reality, it's going to get worse before it gets better. I have considered the idea of doing it though for only one reason. If my credit was totally messed up I would have to learn another way to handle my finances.

Suzi

I've never used a debt consolidator, but here's my thought. Those people will charge you money and if money is what you are short on, why pay someone else? I know A LOT of people that have gone the Dave Ramsey route. We once had a few issues due to some bad decision making and used Dave Ramsey as well. My sister spent the money and went to the Dave Ramsey workshop. I didn't want to pay the money, so I went on half.com and bought the book super cheap. We had ourselves out of debt in less than 5 months. We weren't on the point of debt consolidation though. My point is, that there are other options. You have to be dedicated to the Dave Ramsey plan though. You need a budget. I was able to pay our credit cards off by simply cutting out all the fun money we were spending and taking a serious look at our grociery bill. There are a million and one blogs out there to help you with that grociery bill. We were spending $150/week on grocieries and then I was running to the store for things that I forgot and buying more cookies (my weakness). I got a plan and now spend less than $100/week on wal-mart and groceries. AND, we have more food in this house than we did before. Amazing. I did that to a ton of areas in our budget and it was super helpful. Now, we have a "surplus" every month that we decide what to do with. We started this just after New Years. Not too shabby. On the same note, I have a friend that is trying it, but not so dedicated to it and they are better off, but... well, you gotta be dedicated.

Talk to your bank before you seek out the consolidators. If you have decent credit and something to use as collatoral (ie. car, house) a lot of times your bank can help you out. Also look into possibly increasing your credit limits on one cards to that you can transfer the balance from one to another and then cut up the card that has been paid off. For the most part, you can do everything that the consolidators do for you. Call your credit cards and ask them to evaluate your account to see if they will lower your interest. Most of the time, if you are in good standing with them, they will do it. Be your own advocate and save the money and time that you would spend researching.

NO ! They are a big fat rip-off. They take your money, but don't pay your bills as they say they will. Plus you can get stuck in a contract with them, forced to pay them, while your other creditors are still hounding you for money. I don't know how they are allowed to legally operate.
Check into Dave Ramsey. You'll never be sorry.

Hi T.,
In the past my husband and I used a company called TCCF (The Credit Counseling Foundation) It worked for us to get our credit cards under control and paid off. They got us lower APR's so that the money we paid went further. I will tell you though, that here we are 4 years later and have gotten ourselves in the same mess. If you want to actually take care of the debt you need to learn how to do it for the longterm. We just finished Dave Ramsey's Financial Peace University and it will show you the right ways to get out of debt and stay that way. The 13 week class costs $95 and this includes your kit and a lifetime of support. You can actually go thru the class as many times as you like. It is working for us and I know it will be permanent this time. And not just paying off debt, but also getting our children's college funded and our retirement in awesome shape. GOOD LUCK!

Sorry, I don't have suggestions on companies to use. I just wanted to make sure that you are aware that most (if not all) of these programs will damage your credit rating. If you do go ahead with one of these programs make sure to do your research and go with a not for profit company. Check this out: http://www.ehow.com/how_###-###-####_non-profit-debt-help...
Good luck with your search.

My husband and I went through Clearpoint Credit Counseling. It was a totally painless experience. They have helped out a great deal. We went to an office in St. Charles, MO, but I know they have other offices. There is a small monthly fee, around $28 I am thinking. We pay $166 a month and it is automatically taken out. Once one thing gets paid off, they move the money that was paid to that creditor and move it to the one with the next smallest balance and so on. We started with around $9,000 and now are down to $1,000. We are also trying to buy a house. It shows up on your credit that you are in this program, but it doesn't hurt your credit. That is what our mortgage lady told us. I figure, which is worse? Not being able to pay my monthly bills or asking for and seeking help? THeir number is 1-877-877-1995. I think they also have a website. It is www.clearpointfs.org. Good luck and I hope you find the right fit for what you need!

My sister and I (she suggested this Service to me, too) used Consumer Credit Counseling Service (CCCS) Agency: http://www.cccsstl.org/ I used the Service late 90s/early 00s, and it took me four years to pay off my debt.

It is non-profit, did not try to 'pull' anything, talked w/the CC companies, lowered the interest rates, made a monthly payment that worked for me that I paid to the Service each month. Then the Service distributed the payment to the CC companies. But you HAVE TO AGREE NOT to use CC during the counseling. You MUST MAKE THAT PAYMENT on time each month.

The Service did ask for me to make a service fee payment, but it was optional, I simply stated it would not fit in the budget at the time. And the fee was waived. ~L.

My advice is to stay away from them unless your credit is already ruined. I'm a loan processor and have seen the affects of consumer credit counseling (CCC) on my customer's credit reports. I am not claiming that all of the programs are the same or that I know everything about them, but in general your credit will probably be significantly impacted in a negative way by enrolling in a CCC program. If you're already making late payments (I'm talking 30+ days late, not just a few days late), then by all means check into the program and do a lot of research to make sure you're not getting ripped off. But if your credit is good, don't do it. Good luck!

first read dave ramsey's financial peace or total money makeover before doing anything

We did Consumer Credit Counseling at one point. I agree that it can be a rip off (you should shop around because they are NOT all the same)...I thought their fees were a little exhorbitant considering they weren't able to get any of the late fees or interest rates reduced on ANY of our cards like they had initially promised. Another annoying thing was that despite them telling us the phone calls would stop, they didn't. I still had credit card companies hounding me for money 6 months to a year into the program until I threatened to turn them over to the Attorney General if they continued to call me because according to my CCC contract I was supposed to be protected from this kind of "hounding".

Another thing that you HAVE to do when you sign up for these programs is to HAND OVER all those credit cards. They cut them all up so you can't use them. So just because you are now on a convenient pay back program you need to remember you can't go back out and start racking up more bills. (Sorry, needed to be said...seen too many people do it).

Yeah, it does help to better balance your budget. I haven't listened to or read Dave Ramsey but I've heard good things about him...if you have the self discipline to set yourselves up on a program then I would do it. I would try to contact your credit card companies and see if they will work with you at reducing the interest rate, etc. if you will agree to some kind of automatic withdrawal from your account or something...that would guarantee payment just like a CCC in my book.

You should be able to check with your state Attorney General's office and they should be able to tell you who is at least disreputable (i.e who they have had complaints lodged against).

I would not use a debt consolidation company but check out Dave Ramsey. Like others have said he has done wonders for people who are in the same situation. Infact before he started his program he found himself in deep financial trouble but he pulled through and now he never has to worry again. Another site you might take a look at that can help you is the grocery shrink, www.groceryshrink.com. She followed Dave's plan and had some of her own ideas to pay debt off and to save money as well. Hope this helps and please do not use a dept consolidation company. Good luck and God bless you and your family.

I would also recommend Dave Ramsey. Credit card consolidation companies are not always working in your best interest - most of the time you can do yourself what they would do.

We started Financial Peace (Dave Ramsey's plan) in February of 2007 - we have paid of both mine and my husbands student loans, two cars and are now working on our last credit card before we pay off our mortgage. Let me tell you - it is an AMAZING feeling!!

A good friend of mine is an Independent representative of Primerica Financial Services and is helping us right now with our finaces. It is helping us out a bunch and already feel better about our financial situations. They meet with you for free which is another plus to their company. His name is Wayne Anderson his phone number is ###-###-#### or you can email him at ____@____.com Luck I know what you are going through.

I agree with amy. Use Dave Ramsey program. The company that I am with uses dave ramsey programs and helps us get out of debt. So I would love to share with you how I am doing it with the help of our own financial program. Yes I have had friends use the credit consolidation one. But to me its well worth it to do it the financial way.

D.
1-866-532-6846 to find out about the program and company

T.
PLEASE do not go to a debt consolidation group until you do what I am suggesting!!! You can do this on your own! There is a guy named Dave Ramsey...He has a program that teaches us how to control and get out of our debt. Call Morning Star Church in O'Fallon mo###-###-####)....they are conducting it and will be able to tell you how to get enrolled. There are many people there who are thrilled they are learning how to control their debt/finances!! I think that you will be glad you hve not gone to a consolidation person...tht is only a quick fix. We all need to know who to handle our money in the appropriate way. I will be praying tht this works out for you, I know how stressful financial burdens can be. It kinda takes over all your thoughts!

S. goebel
lake st. louis