2006-06-20 04:42:41 · 8 answers · asked by n_darden 1 in Business & Finance ➔ Personal Finance
Here is the truth about those programs.
They ruin your credit.
If all of your creditors do not participate in the program it can actually end up costing you more money.
They charge a fee per card per month.
I went through one of those programs. All of my creditors did not participate in the program. The ones that did eliminated interest so that all monies were applied to principal. The ones that did not RAISED the interest. They all canceled my accounts and reported them to the credit reporting agencies as special program. Because of the fees that were charged my net savings every month was around $40. Because the payment was made to the program it was all at once, debited from my bank account, instead of some from each paycheck as the due dates from the bills fell.
I ended up in a bankruptcy 7 months after I started the program.
2006-06-20 06:58:59 · answer #1 · answered by Sharingan 6 · 0⤊ 0⤋
BAD..BAD...BAD...First if its a counseling program like Consumer Credit Counseling, you must complete the program or they report your failure to do so on your credit report. It's like a new creditor and new bad debt.
If its debt consolidation, it's basically a scam...Why entrust your financial state to a disinterested third party.
Get all your ugly, ugly bills together, grab the phone, and start calling. Ask for rate reductions, ask for temporary zero percent for a couple of months. The cards want their money; be polite, be persistent, and take the time to understand your own finances.
good luck....Hell, I'll help you for free and won't report your progress to your credit report.
2006-06-20 06:11:34 · answer #2 · answered by Paula M 5 · 0⤊ 0⤋
If you are having trouble making your payments or cannot send more than the minimum payment, then you might want to consider it. For those who qualify, it usually helps.
If you can pay more than $100 more than your minimums each month, then you should first try to pay it off on your own instead. It may take longer, but you will benefit from a higher credit score.
Debt settlement companies and attorneys will tell you that it is bad because they see it as competition to their services, which it can be.
2006-06-20 10:37:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋
surprisingly credit counceling sevices can hurt you particularly if you are planning to buy a home or refinance soon. creditor may veiw your being in the service as a collection or forclosure as far as they are concerned. i believe that you can negotiate payment plans with your creditors just as easy as they. communication is the key. creditor just want paid so most will consider your situation and allow for a payment plan to be adopted that you can manage and be in good standing which improves your credit.
2006-06-20 06:09:12 · answer #4 · answered by phaze1bj 2 · 0⤊ 0⤋
It is a good idea to get your finances under control.
2006-06-20 05:02:43 · answer #5 · answered by fire4511 7 · 0⤊ 0⤋
I was here on Y Answers for something or other, then this question was displayed on the sidebar...
2016-08-23 00:11:34 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I don't think anyone can truly tell you
2016-08-08 00:54:41 · answer #7 · answered by Anonymous · 0⤊ 0⤋
a little of both
2006-06-20 04:45:38 · answer #8 · answered by jyd9999 6 · 0⤊ 0⤋