Does anyone know a good debit counslor or company that really works? And can help me get out of debt?

Answer 1

A lot of place advertise their services and may not be reliable, so look into the Better Business Bureau or speak to someone at your bank and see if they can recommend or assist you.

There are some things you can try on your own... first, If you are in a position to pay off any of your debt (that may be in collections) please ask for any negotiations to be sent to you in writing. In other words, collection agency will offer to accept a lessor amount, just make sure it comes in writing otherwise they might change the terms! Second, work on paying off the smallest debt and/or the ones with the highest interest rate. Third, read up on this topic as a lot of general (but good) advice is available for free, especially thru reliable sources like Oprah or major news providers. They often run stories on this topic as so many Americans are in debt. Good luck!!

Answer 2

Stay away from "Debt consolidation" companies. In fact, stay away from Consumer Credit Counseling. Why would you want to enlist a third party to pay bills....If you sign up and don't complete the program, you have just added another creditor with a negative report to your credit score.

Get all your ugly financial papers together, grab the phone and call each one. Ask for temporary reduction of interest. Ask for 0% for a couple of months. Tell them what you need and they will help you. They want their money. Be polite and you will get a break. It'll take time, but it's free, and you will be so much more knowledgeable for the future.

Don't entrust your credit to someone else.

Answer 3

This is another vote for Dave Ramsey. Debt consolidation companies don't do anything that you can't do yourself. Besides, moving the debt around doesn't solve your real problem. You're in debt because you live on more than you make. If you can correct that problem, then you can get out of debt yourself.

Read his book "The Total Money Makeover".

Answer 4

And still another vote for Dave Ramsey. We used his 'baby steps' to pay off a $20,000 car loan in 20 months. The only debt we have left is student loans and they should be paid off within a year.

Answer 5

I agree, do it yourself. Save money, learn your rights and by also doing it yourself, you may be less likely to end up in the same situation.

I would suggest going to a few self credit repair sites and do some reading. Find one that you like. You can find many of them by doing a search under - credit repair boards.

Or, use my favorite spot - creditboards.

If you do not want to do it yourself and want to use a debt repair company - Do your research on them. Check them out with your state and with the BBB.

States are starting to have stricter regulations on those types of companies because of the underhanded tactics many of those companies have used. And, quite a few people who have used them have ended up in worse shape than when they started.

Answer 6

Another plug for Dave Ramsey... www.daveramsey.com.

From his show, he says you can do it yourself. The only company I've heard him recommend is Consumer Credit Counseling Service. BUT, if you use them it can show up like a chapter 13 bankruptcy on your credit report.

Go to his site and look up info. Look up "baby steps" and "debt snowball."

Answer 7

As a former financial counselor, it really gets to me when I see so many people with a negative view of credit counseling. The industry in the past has gotten somewhat of a "black eye" because of misinformation and bad press. By your question though, it sounds like you are earnestly trying to do something about your debt situation and have come to the conclusion that debt counseling is the best way to reach your goal to be debt free. It sometimes takes much effort to get to where you want to be and sometimes you can't do it by yourself. I can speak from experience about the DMP because not only was I once a counselor but I too have within the last year made a commitment to pay off my debt through a DMP. Debt management is sometimes the only way that you will be able to show your creditors that you are trying to turn a new leaf.

In case you are interested in contacting a counselor, make sure you look for these things in a company:

1) A company who is genuinely trying to help consumers. A company who is looking for the consumer's best interests will not only counsel you, but they may take you through a budget, analyze your situation, provide free financial material, etc. In other words they don't just try to enroll you. You should never feel pressured.
2) A company who is non-profit, certified, and has a good track record with the BBB. A company who is non-profit may ask for a donation but it is purely voluntary. All your payments should go to your creditors. Also there are regulation agencies in place to weed out the "shady" companies, so you should make sure they are certified and a responsible member of the BBB.
3) A company that answers all your questions. You probably have lots of questions, but a counselor who is knowledgable AND certified will be able to walk you through step by step, and explain thoroughly every step of the process.

In case you are wondering on how they work:

Here's the basics on how they work:
1) You have lots of high interest debt. Perhaps you fell behind on some credit cards or private loans, and the late fees and high interest rates are making it very difficult for you to make any progress. With my case, I was always on time, but I wanted to make a change in my life and rid myself of my high interest debt. So what can you do?
2) You call a credit couneling company. I can't speak for all companies, but at the one I worked for we were trained to counsel the clients. To show care and compassion because they were in some difficult situations. They will make a decision as to whether or not the program will work for you. Okay so you qualify for the program, now what?
3) You enroll your high interest debt into the program and the company will begin contacting your creditors to negotiate lower interest rates on most of your accounts. Many people above state that credit counseling can't do anything that you could do. That is actually inaccurate. If you call your creditor to reduce interest, they may budge after much pleading, and bring it down 2-4 interest percent points. On the other hand, a credit counseling company could bring down your interest by 15-20% depending on the creditor. This is a tremendous help because interest consumes most of your monthly payment anyways. Another important thing that you have to remember is that the creditors also CLOSE your accounts. This is to further help you along in paying off your debts.
4) You stay in contact with your consolidation company and creditors. But you only make ONE payment to the consolidation company, who in turn forward it to your creditors.
5) Sit back and watch your debt slowly disappear!


My overall experience with a debt management company is a smooth one. As far as my debt goes, in about 18 months, I have gone from $14000 debt, to about $8500. That's a big leap for me, and it's only going to get better as the payments get larger when accounts begin to close. It's a great system and more people need to take advantage of the great opportunity creditors have given consumers through the DMP. My credit score wasn't bad to begin with but it has increased from 695 to 723.

So if you are interested in the company I worked for, it is http://www.incharge.org . They have a great relationship with the Defense Department as soldiers that are in financial trouble are often referred to them. If you are interested in the company I have an account with, it is http://www.careonecredit.org/ . Both of these companies are registered with the BBB and have outstanding reputations.

There are plenty out there though, so you should find the one that best suits your needs. I hope that you get to where you want to be and don't ever give up! Patience will heal your credit. There is no quick answer. Good Luck!

Answer 8

If you haven't already done so, check out the "get out of debt" section on leading financial website "The Motley Fool":

USA Version
http://www.fool.com/ccc/debt/debt.htm

UK Version
http://www.fool.co.uk/debt/debt.htm

Answer 9

www.daveramsey.com

you can do it yourself.