Mothering Forum banner
1 - 10 of 10 Posts

·
Registered
Joined
·
1,730 Posts
Discussion Starter · #1 ·
DH and I are about ready to go to a non-profit credit counseling service Re: his debt. My credit is good, but his is shot
We're currently homeless, living with relatives and trying to pay off debt. (We couldn't afford rent/house payment anyway!)
Does anyone have any advice about credit counseling/debt consolidation?
Thanks!
 

·
Registered
Joined
·
59 Posts
Research, research, research! When dh and I were looking into this, I spent a LOT of time online, first searching for companies, getting a feeling from their website, then looking them up on the BBB and getting any feedback I could. We ended up going with a company that my cousin and her husband recommended to us. They'd been with them for over a year and were happy with them. So far, we've been happy with them, too. We still get our credit card statements each month and it's satisfying to watch our balances go down, down, down. We did have to pay them a month upfront (meaning the first month's payment didn't get divvyed out to creditors), but we'll get that back after our last payment. Really pay attention to the paperwork you get; see what, if any, fees are being charged monthly and for what (even non-profit companies usually charge a small monthly fee to cover their expenses.) And pay attention to your monthly statements from your creditors. Make sure the proper payments are being made on time.

I wish you guys the best of luck!
If you'd like to talk about it anymore, feel free to PM me.
 

·
Registered
Joined
·
66 Posts
We went with a company that used to be called Profina. It's now called In-Charge Debt Solutions. It's a non-profit. And, I'm VERY proud to say, we have only ONE MORE PAYMENT, and then we're completely debt free (except for one student loan that wouldn't participate in the program). We've been on the program for almost 6 years. The company has been great. They work with the creditors to get you reduced interest rates. Then they withdraw your monthly payment directly from your checking account each month and distribute it to your creditors. You're not allowed to incur any new debt while on the program, and you must close all of your accounts. We were close to $90,000 in debt when we started (this included a car payment, which was not eligible for the program--we paid that off on our own), and like I said, we have only one more payment to go
. And, I just recently checked my credit report, and it's great. Now that we're almost done with the program, we're so used to being VERY frugal and not using credit cards that it will be easy for us to maintain that lifestyle. We'll actually be able to start saving up for a down payment on a house! Good luck. It's hard work, but it's so worth getting out of the hole!
 

·
Registered
Joined
·
714 Posts
We are working with CCCS. Have been for about 8 months. They are also an agency that qualifies for the mandatory credit couseling if you file bankruptcy.

What is nice is that it does not show on our credit repots that we are working with an agency. Our credit cards report the payments as on time and we make the one payment monthly. I actually liek it this way as they automatically snowball once the lower balance card is paid off, I think we will have paid $20000 in about 3 years!!
 

·
Registered
Joined
·
2,618 Posts
My dh used CCCS to pay off his debt before we were married. His payments were really low and it was only going to take him four years to pay off a large sum of debt. We were lucky b/c my mom gave us the option of a big wedding or paying off the debt-we payed off the debt.

Anyway i think you are making a good move. Good luck.
 

·
Registered
Joined
·
1,730 Posts
Discussion Starter · #6 ·
Can we do this for just DH? Like I said in pp my credit is good/no debt. Would it have to include my credit accounts?
 

·
Registered
Joined
·
6,061 Posts
We are looking into it as well. Mainly because we have a lot of small stuff so are unsure about combining it or paying them off one at a time. Also the coming April we will receive part of our adoption tax credit back and figured they would know the best way to distribute it.
 

·
Registered
Joined
·
714 Posts
Quote:

Originally Posted by mamalotusyoga
Can we do this for just DH? Like I said in pp my credit is good/no debt. Would it have to include my credit accounts?

You can include or not include whatever you like. We put 3 cards on the plan and are paying 2 ourselves. (The 3 that had the rates hiked to 30% because of late payments!!!)

Although I will say, with the other 2 we did go late and they raised the rates, but after a few months of non-payments, they worked with us on a reduced payment/lower interest plan to pay them off. SO I guess my point is, sometimes you can work with the cc company yourself and not have to go through the CCCS or whatever.

And no, yo dont have to put your in with your dh!
 

·
Registered
Joined
·
48 Posts
Like someone said, research, research, research. Check out the Better Business Bureau reports on the organization and check in with your state's Attorney General's website as well. I went through CCCS years ago, and while I did get my debts paid off, the counselor screwed things up royally in the beginning and as a result, I had about 3 60-day late payments marked on my credit report.

Be sure to keep an eye out for how much of your monthly payment goes toward their "overhead". CCCS was reasonable, I think, but others are pratically highway robbery.

Good luck!
 

·
Registered
Joined
·
714 Posts
Quote:

Originally Posted by tullyleague
Like someone said, research, research, research. Check out the Better Business Bureau reports on the organization and check in with your state's Attorney General's website as well. I went through CCCS years ago, and while I did get my debts paid off, the counselor screwed things up royally in the beginning and as a result, I had about 3 60-day late payments marked on my credit report.

Be sure to keep an eye out for how much of your monthly payment goes toward their "overhead". CCCS was reasonable, I think, but others are pratically highway robbery.

Good luck!
Absolutely!! I open and check all the CC statements each month ( CCCS recommened this) to make sure the payments posted, that there were no fees or charges, etc. I think $11.00 a month goes to them and the rest to the debt.
 
1 - 10 of 10 Posts
Top