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Category: debt management

Finally, I got out

Finally, I got out

I got out of that with ‘London Financial’ after months of sending them money and putting up with the nasty calls from creditors.

I pulled out and they sent me most of my money back (Short of their $50.00 fee per month …for doing nothing) and I made payments, dealt with another, got the collection agency on my back, but at least THEY took lower payments… and I am almost paid entirely off to them now, Paid off 5 other debts through the years and after May, I will have 2 bigger (But non-delinquent) debts left to pay off.

Deal with them yourself. Debt management places only save your money, getting the interest and ‘fees’ while YOU are left to hold the bag on the phone calls for years.

In the Debt Management/settlement industry there are a lot of fly by night companies, but there are some that have a legitimate stake in assisting the clients.

The success of a program like that is based highly upon your location and determination to get out of debt. The industry as a whole settles debts for 40-50% of the balance owed and the good comapnies are going to charge you about 15% of your debt.

The industry is NOT for everyone. It is a tough process to go through as you do get late pays reported (which can ultimately be removed) but to look at the big picture, it was your “good credit” that helped get you in that situation.

Look for a company that has been around, and for one that does not hold your funds. In most states that has become illegal and several Management/settlement compamies are behind on the times. Try to find one that will provide you with copies of previous settlements and a rep that takes the time to listen to your situation and not just sell you for a commission in their pocket.

Also, many debt management programs aren’t very good but CCCS of Atlanta is very reputable and will help you get out of debt. They are a non-profit organization and you will not have to pay off your accounts in a lump sum. They will get your rates reduced and you will pay a monthly fee and they will also send you a monthly statement of what was paid where. Check out Anyone in the US can use them. You don’t have to live in Atlanta.

I highly recommend this for people with interest rates over 18%. It m y be your only hope to get out of debt.

Debt management question

Debt management question

hi everyone,

is debt management advisable?

NO! I am working on getting us out of one as it has totally screwed up our credit because you actually stop paying your creditors and pay the DM company to settle with the creditors. The problem with the one we are with is that they started settling with our creditors and before we had anything saved to pay them with. Once you settle then the creditor wants their money now in lump sums. It’s too much of a headache. You are better off working with your creditors yourself.

But in general I think it depends on the company.

Some companies do what is described here, and nothing goes in to your creditors until so much is built up. According to everything I have read in Consumer Reports, Money, Kiplingers, etc. this is a SCAM and set up to really screw you. The reason is that the creditors are not getting anything, just reporting you as late/non-paying.

I have known people who have worked with Consumer Credit Counseling Service (through Lutheran Social Services, I think) – you don’t have to be Lutheran. They help everyone. You pay them a set amount for your bills, but they send the money to your creditors every single month. Up front, the creditors agree to take a particular amount of money and you know up front what is going to the creditors. It will still take years most likely to dig yourself out, and the accounts will not be available to you to use until the program you enter is complete, but the people I have known that did it stopped the collection calls, the harassment, and were able to sleep at night.

You still get a statement each month from the creditors, so you can keep track of things and verify that your payments have been made. The creditors get paid only once a month on the date that CCCS negotiates with them, so when you make your payment, that’s it. They will not charge you for being late, past due, etc.

There are legitimate companies out there willing to help you dig out of the hole and there are scam artists out there, no matter how “legit” they look.

You can do it on your own, but it takes discipline and a determination to do it. Can you stop using the accounts long enough to make a difference. I have been reading that Dave Ramsey book, the Total Money Makeover – get it for free from your local library – and the debt snowball makes sense.