Debt Consolidation

What is the name of your state? OH

I was wondering if anyone could recommend a good debt consolidation program and if I di that, will it result in fewer calls from collectors. As of right now, i have outstandings on credit cards that are with a collection agency and was hoping consolidation of those bills would alleviate the problems I am having, which consists primarily of collection calls and demands.

Thanks in advacne for your help.

[Jeter]

I believe Consumer Credit Counseling Corp has programs in many different states. Check to see if they have one in your state. The key is to find a non-profit organization.

Credit counseling will usually give relief from collection activity. It will take a good 2 months or so until the collectors stop calling. They must first be contacted by CCCC to let them know that your payments will be submitted through them.Once the process is up and running you should be able to pay down your debt in 3-5 years and not have to deal with collectors provided your payments to CCCC are on time.

Jeter

[Ladynred]

The problem, even with non-profit CCCS, is that NOTHING obligates the creditors to accept and participate in the program. Those that refuse, and many do, will continue to be nasty and harass you for payment. I've read too many times that there is NOTHING that any cccs service, non-profit or otherwise, can do that you cannot do for yourself. A person needs to get informed and be diligent but it can be done w/o any outside help.

Its a personal decision.. if you don't want the hassles of negotiating with creditors and collection agencies yourself, then go with the non-profit CCCS. Just be aware that any of these CCCS programs are not all smooth and easy.

[Jeter]

Ladynred- You said:

"The problem, even with non-profit CCCS, is that NOTHING obligates the creditors to accept and participate in the program. Those that refuse, and many do, will continue to be nasty and harass you for payment. I've read too many times that there is NOTHING that any cccs service, non-profit or otherwise, can do that you cannot do for yourself. A person needs to get informed and be diligent but it can be done w/o any outside help."


That info is incorrect. The fact is that MOST credit card companies participate in CCCC programs. The creditors list with the CCCC agency prior to ever recieving a client from CCCC. 99.99% of the time if a creditor is listed with the agency (and as I said, MOST are listed with all CCCCs) the creditor will accept your case. I've seen people who are 3 years past due get happily accepted by the listed creditor as a matter of routine.

Additionally, credit card companies extend rates to CCCCs that they do NOT extend to individual debtors. There are creditors that will accept a finance charge as low as 0% AND a lower monthly payment until the debt is paid in full. You will NEVER get that rate on your own (try and you'll see how nasty they can really be and how frustrated you'll become). The best deal you'll get on your own is a 3-6 month hardship period to pay at a reduced rate. After that you must continue paying at the regular rate, and that deal may not be extended to you again.

Some CC companies will not participate, but that is an across the board policy, not case by case. For example, you will not see Sears listed on any CCCC list because they refuse to participate in these programs, period. However, the aggregate benefit you will get from listing all of your cards will be a lower AVERAGE interest rate on your debt (ie 5 credit cards at 10%, 5 at 5%=7.5% overall interest rate on your total debt) and a lower overall payment.

Remember though, that your credit cards will be CLOSED when you put them on the program. You cannot use the card and will not recieve another card from that particular issuing bank until you have paid the existing debt in full. Even still, it doesn't matter how informed or dilligent you are, you will not get the benefits that you will get at a CCCC. The only thing that will get you a better rate is bankruptcy.

Jeter

[nailtech]

Though they may participate they don’t all lower their rates, out of the 13 my husband contracted with them only one or two lowered their rates to 6% and one to 9%... the others were still at the 18 and 21%...... basically they participate, but they don’t cooperate...... then the husband paid them over 18K in little over a years time it only went down approx. 1,800.00 and paid the CCCC 1,800.00 to be in the NOT FOR PROFIT org... and they said he would be out of the program in 4 years.... you do the math (original debt was 65K),.... it wasn’t going to happen...... we were told they have certain companies they work with I think your best bet is to go with the original company that started this. I was once sent an application by Sears to enter CCCS...... but stupidly I declined, I was told by someone within the company that the CCC got a kick back from the CC comp. they said they would pass it on to us when they received one to help lower our bill, but seems once we contracted with them we could never get them on the phone afterwards, weird ha************** go figure.....

Anyway here’s a link to "I think" the original company, go under “Fees” and read up**************


[URL=http://www.cccs-la.com/fees.html]CCCS- click here[/URL]



by the way after our time in Cambridge CCS.... we ended up filing BK,************** but we did try and now feel like we spent good money on bad advice.... oh well...... we tried.....

and yes sears will work with you in certain CCCS.... after all they are the ones who sent me the brochure...


Then again your talking about debt consolidation, which is way different the counseling services************** the only problem with all that is,...... you consolidate your bills, don’t tear up your cards, recharge then you now have Ccard debt along with the consolidation bill, double problem************** back to where you started from with an extra additive************** you still have all the bills**************...

[Jeter]

nailtech,

Congratulations! You chose one of the most fraudulent firms in the debt consolidation business.

FYI...did you know that Cambridge's main HQ is operated out of Long Island New York? They Call it Cambridge and filed in Mass because it's the easiest state to be blue skied in (registered). Their phonecalls are redirected to LI where their "experts" pretend you have called MA. Oh they do have an office in MA now as well, but they were created and still reside on LI. Ironically enough, they don't handle debt consolidation in NY. Why? Because you must be an attorney to handle debt consolidation in NY. They probably told you that your first monthly payment is held "in house" or in escrow until you complete the program. Then you get it back. That's their idea of non-profit. Sound familiar?

A legitimate non-profit organization only charges filing fees, which they pay to the CC companies. Usually the fees range around $35 or so. These companies will ask for "donations" but It is up to you IF, and how much you will donate.

Sears will not work with you in any CCCC program. They will accept payments but will not lower their % rate or payment. Most major credit cards have a consolidation program but it doesn't mean that they're going o lower their rate for you.

Once again, you cannot charge with the cards you put into a legitamate debt consolidation program because your accounts are closed. That saves the double- jeopardy situation that you described. I still recommend consolidation if a person doesn't want to file bk.

Jeter

[Ladynred]

Good info, Jeter, but the fact remains.. even the non-profit CCCS's are funded by the credit card companies !! That's like having the fox guard the hen house !!! I once went to a CCCS service in SC several years ago when I was laid off. This was a state-run CCCS office, and the payments to them were based in a sliding scale of what you could afford. However, the woman there told me that with the bills I had at the time (not as severe as now), there wasn't much they could do for me !!! She gave me some helpful info on negotiating with the creditors myself and I went on my way. I was out of work 6-1/2 months that time... believe me..it got ugly, and I had no recourse for help.

Debt consolidation can be quicksand. If you don't cut up ALL the cards you consolidate, you'll be worse off than when you started.. choose wisely.

[nailtech]

Originally posted by Jeter
nailtech,

Congratulations! You chose one of the most fraudulent firms in the debt consolidation business.

FYI...did you know that Cambridge's main HQ is operated out of Long Island New York? They Call it Cambridge and filed in Mass because it's the easiest state to be blue skied in (registered). Their phonecalls are redirected to LI where their "experts" pretend you have called MA. Oh they do have an office in MA now as well, but they were created and still reside on LI. Ironically enough, they don't handle debt consolidation in NY. Why? Because you must be an attorney to handle debt consolidation in NY. They probably told you that your first monthly payment is held "in house" or in escrow until you complete the program. Then you get it back. That's their idea of non-profit. Sound familiar?

A legitimate non-profit organization only charges filing fees, which they pay to the CC companies. Usually the fees range around $35 or so. These companies will ask for "donations" but It is up to you IF, and how much you will donate.

Sears will not work with you in any CCCC program. They will accept payments but will not lower their % rate or payment. Most major credit cards have a consolidation program but it doesn't mean that they're going o lower their rate for you.

Once again, you cannot charge with the cards you put into a legitamate debt consolidation program because your accounts are closed. That saves the double- jeopardy situation that you described. I still recommend consolidation if a person doesn't want to file bk.
Jeter

well no I did not know that for a fact, but not that It all matters to me now, husband is not in it anymore... I dont know any of the paticulars that you stated, husband did most of all that before we were married...

not going to dispute that sears wont work with you anymore on CCCS, I knew the once would or they would not have sent me the info or told me about it on the phone if they were not trying to help me, but that was years ago...

But i'm not getting into a spitting contest with you over this... and there nothing worse than someone thats out to make you feel STUPID after the fact... but thanks and have a wonderful day...

[Jeter]

Sorry,I didn't mean to come off that way. Just dry humor mixed with aggravation , but really not intended as a shot at you.

The FYI wasn't intended to be rubbed into your face. It is seriously something I wanted to let you know in case you wanted to pursue anythig against them. I also wanted to let others who read this know so they don't get scammed as well. That info is little known by anyone. The reason I know that info is that I used to live on LI and I worked in the debt consolidation business. A friend of mine knew the company's owner and I heard the inside scoop about Cambridge from day one.

Strangely enough in my 1st post I was going to say stay away from Cambridge Credit Counseling but I really didn't know how well known they are now and that anyone would know who I was referring to. . I definately don't find it funny that a company takes advantage of people in need of real help.

I tried getting into a spitting contest once on the computer, but my screen got all wet and gooey, so I realized it's a futile effort.



Jeter

[Jeter]

Ladynred:

I understand where you're coming from. I think that bad experiences and misunderstanding of the way debt consolidation works puts a bad taste in people's mouths about the whole thing.

The credit card companies fund CCCCs because CCCCs are helping them to collect their funds. There's nothing wrong with that. There's no fox in this scenario. The fact that a credit card company is interested in recieving payment back on the money borrowed from them does not make them predators. Matter of fact, the reason why many CCs will extend rates only to CCCCs is to entice the use of debt consolidation services so a person can pay down their debt.

As for the benefit, it is on a case by case basis. Your overall benefit is a composite number based on each individual credit card. Ex: You and I could both have 5 different credit cards. Out of your 5 cards, maybe 3 of them will lower your payment but not your interest rate and maybe the other 2 will lower nothing. That leaves you with no real benefit, so you may as well do it on your own and eliminate the middle-man. But maybe 4 out of my 5 CCS are banks that will lower both interest rate and payment for the CCCC. It makes sense for me to use the CCCC because they are extending rates that I cannot get on my own.

The debtor still needs to take responsibility to make timely payments. If someone witholds a CC or 2 from consolidation and maxes them out on his own, he is hanging himself. Don't blame the CCCC for that.


Jeter

I'm here right now in this mess. And I hate the company. We hastily chose a bad place that mixes up payments.

A good company is supposed to be able to lower the interest as well as the monthly payment. Now not all creditors will lower the monthy payment, but it the interest is lowered, that helps. However, a lower monthly with the same interest defeats the point.

Some creditors who list will only accept clients if there is a "need" that can be proven. MBNA is notorious for this. I have a lot of medical bills and supplies we need to buy, but because the medical supplies are not something a monthly bill is sent for, they wouldn't count those as part of the bills for each month. So the lady who did our ap, who was actually a nice lady, illegally upped the amount of rest a month since the rent isn't verified. MBNA wanted to see us in the negative for just rent and monthy statement bills before agreeing to the program, and even then, after all the other bills were lowered, they still wanted to see that we would be in the red by paying their bill in full. It took a bit of "tweaking" to get them to accept us.

From my experience, I'd say only go to a consolidation place as a last resort. These are the bills that are actually my fiance's, but I decided to file bankruptcy. He's in money problems too since he buys the medical stuff my disability doesn't cover,which is a few hundred a month in just gauze.

[Jeter]

How ridiculous that MBNA wouldn't count your supplies as a monthly expense. They could have esily taken an average amount of what you spend on supplies each month and figured it in.

By the way, that's another thing and something I failed to mention. There are 3 types of CCCCs. One type will insist on handling ALL of your debt and then qualify you through their own debt/income analysis.

The 2nd type of CCCC will accept whatever debt you would like to include, tell you your monthly payment/interest rate and allow you to decide if it's what you want to do.

The 3rd type lies, takes your money and leaves you with more debt than you had going in.

I'd recommend 1 or 2

Jeter

We have #3. I spent hours on the phone this week trying to get some answers to why none of the bills were paid the last six months, at $475/mo, with a $35/mo "fee" and after oaying $400 to get into the damned program in the first place.

Could you recommend a reputable program in CA that preferably has no "set-up fee"?

Go to amerix.com .They are good company and you dont have to the month fee if you cant a afford it.

[mandy7181]

would you please refrain from posting disgusting pictures. I came here for legal advice and maybe to help others---kids use this site----you want to post pictures like that---buildyour own website