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Credit Counseling Pros/Cons

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What is the name of your state? ohio

Got about 25,000 in cc debt. Wife and I are both employed with good jobs we're just getting behind, not missing, just behind in paying our bills and are starting to get the calls every month. We should not be living paycheck to paycheck with what we make.

Anyway, been looking at counseling(just info on the net now) because I know it will take forever to pay off the CC's since all we ever do is pay the minimum(and it's always a week or two late) and we want to pay off but can't do it on our own right now. We own a house but don't have enough equity to pay off the debt.

My main question is: What happens to your credit rating if you use a credit counseling service like Ameridebt?



First, I would never use Ameridebt...they have a questionable reputation...at best. In fact, many credit counselors/debt services have questionable reputations. It's best to use one that has a local office in your area (look for a CCCS office). Trying to do debt counseling over the phone with a company like Ameridebt can be a nightmare.

Next, you have to ask yourself some serious questions-- Do you have the patience and discipline to cut up your credit cards? Stop spending money on eating out and other non-essential things? Are you willing to devote most of your money to paying off your credit cards over a 3-4 year period?

If not, signing up for a debt counselor is a waste of time.

Paying off that much debt means that you must change the way you live for several years. It means getting rid of all the extras...cable channels, cellular phones, dining out, etc. All that saved money can go to paying down the debt.


I would like to add that credit counseling puts a major dent in your credit scores too. Many creditors will look at this as a warning sign that you are unable to handle debt so you had to have a pro fix it. You might think that this shows them you are responsible but quite the contrary. I have heard of instances on other forums where credit counseling has hurt someone worse than a bankruptcy. I would only take this route if that is the only way out. Check your credit reports and see if any "lates" are showing for your debts(you mentioned they are usually only a couple weeks behind?), if you do then your credit is banged up already. Weigh all your options before credit counseling.

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