debt negotiations verses debt couseling service

i am currently 3 months behind payments on six credit cards, i haven't been able to pay them anything. i wanted to know if it is better to go to a credit counceling place like profina, or go with a debt negotation place. what are the risks of going with a debt negotation place? my credit is already bad because of this, but i just want to make sure i don't lose the house that i have been buying for the last four years

Dear pappap,

Your best option is neither. Call the creditors directly, give them your complete financial situation and negotiate a hardship payment program with each of them. Try to reach agreements that stop interest and late fees.

There is no reason to pay another company to do something you can do yourself. That money would be better spent on your bills.

Good luck.


[email]JASON@LEGISLATOR.COM[/email]

FYI - not all credit counseling services charge you for the service - Consumer Credit Counseling Service (CCCS) is a great non-profit organization who does all the dirty work for you. They're good, but they're strict.

Also - word of advice - some future creditors will see the CCCS on your credit report and feel you are a good credit risk, since you made the effort to actually pay off your obligations. OTHERS - see it as a last-ditch effort to avoid bankruptcy. I agree with the previous poster that it's better to do it yourself if you can - if not, try a non-profit.

I live in ohio, if you go to a debt management make sure you check their history. My boyfriend went through one that was suppose to have negotiated payment with a credit card, they didn't and this damaged his credit worse. be careful