credit counseling agency or no??

Question

Ok so I've read many comments saying not to use these services
because they mess up your credit (mine is already a mess!!) , then some people say they have helped them to regain control of their credit. I am unsure of what to do--whats the verdict on this--I would like to hear from some people that have used the services of CCCS or some other agency, also would like to hear from people who have fixed their credit on their own. Please help--I need to get my credit in order.

Answer 1

As far as using a credit repair company, I've never used one myself. I've heard both good and bad about them, mostly bad though.

If you decide to use one be sure and research them as hard as you can. Keep on top of them and "don't" let them withhold payments!!! Also make sure they aren't a "pay themselves first, then pay the creditors" type of company, letting the payments to your creditors slide while they get theirs first.

As far as doing it on your own, many people do it themselves. Some get lucky and it goes fairly quickly.
Some it takes awhile.

A lot of it depends on how the disputes with the bureaus and dealing with the creditors goes. And also how hard you work on it.

But, whether you pay a service or do it yourself, you will probably run into some baddies that just love to stick.

Doing it yourself is work, no getting around it.
Having someone do it for you, you have to do the work on researching the company, keeping on top of them and you also run the risk of being in worse shape than when you started.

Doing it yourself, when you see the baddies fall off and realize that "you" did it.

Doing it yourself, you learn your rights and how to use them. You become more "aware" of credit.
You learn how to deal with creditors before and after cleaning up your credit. (how to get the best interest rates on cards, loans etc)

And the biggest thing you learn when you realize that cleaning up your credit being difficult is that you think twice about that purchase you want to make. You weigh the pros and cons about it because you are thinking about your utilization.

When you use a credit repair company, someone else cleans up your (for a better word) mess. And hopefully doesn't make a bigger mess of it.

I'm not saying that everyone who does it themselves does not fall back into bad credit, it happens. But it seems to happen to fewer people who do it themselves than those who use a credit repair company.

You might check out the site I've listed. Do some reading in the newbie forum and then in the credit forum.
All of the information on that site is free to read and use. If you have any questions while you are in the credit forum, feel free to ask them in there.

Answer 2

I have used the services provided by Consumer Credit Counseling Services for a year.
The Bad Part:
Actually, I was a year into doing it on my own. I had torn up all my credit cards and called all of them to request a reduction in my percentage rates. As I was not late on any payments and paid over the minimum every month, all went well for a year. Then I was contacted by one of the credit cards (Chase) who told me they were raising my interest rate to 18%. Even though I was a good customer, they decided that I was too much in debt and raised the rates on me! They refused to negotiate with me unless I went through CCCS, thus forcing me into using the service. CCCS was able to get them to lower the rates back to 7% and I have been following a payment plan through CCCS since then. I would have rather done it on my own but learned that when you stop using your card for a long time, the card companies look into your records and will probably do what Chase did to me. The other hard part of using CCCS is that, unless you are willing to give up your credit cards, it simply won't work. Yes, it will follow you for 7 years after you have finished paying off your debts but many cards and agencies see your attempt at getting out of debt through CCCS as a more positive sign than declaring bankruptcy.
The Good Part:
CCCS is very reputable and, though it took a couple of months to get my payments through them coordinated with my due dates on my cards, once that was worked out, it has been going well. The credit cards all gave CCCS much lower interest rates than they would me as an individual. I was ready and had already given up my cards so that wasn't an issue for me.

A caveat:
You absolutely have to keep on top of your statements and bills. CCCS doesn't do that for you. If you use their agency to pay your bills, you need to make sure that the payments are getting to the creditors on time (adjusting your due dates will work toward that). The other thing is that you do not incur any more debt. This is something you should be doing anyway.
The End (so far) result:
So, though I live frugally, in a year through CCCS I have paid off $15000. of a $39000 debt! It can be done! Do it now before it gets worse. Debts don't go away!

Answer 3

Stay away. You can not rebuild your credit while you are dealing with them. Pay your bills on time, every month without fail. Then make sure your good credit history is reported to the credit bureau. Don't use your charge accounts, you want to pay them down, now run them up.

Pay everything on time. Gradually your credit rating will improve. A credit counseling agency is a black mark that continues for long after you no longer use their service. If you are paying a counseling agency, you are really being foolish.

Answer 4

I found a solution that worked for me. It might work for you too.

I had some pretty serious credit problems…some were not my fault and, I guess, a few were. I listened to the so-called “experts” who said they could fix my credit report and I spent money I didn’t have. I didn’t have any luck trying to get my credit report fixed.

I remember paying for the services that these Credit Repair Companies had to offer. The companies told me that they could have negative items removed from my credit reports without any problem, Yeah, right. This did not happen at all. Most of the companies wanted to charge me a set up fee anywhere from $39 to $299 for their services. Not only did they charge this set up fee, most of them also wanted to charge me from $29 to $49 monthly while they “attempted” to repair my credit report. These companies offered no guarantee that their services would actually work and, believe me, they didn’t.

I was about ready to give up when I found a lady who had been through the same thing and who had found a solution. She figured out how get all the negative items removed from her credit report within 3 months without paying anyone a penny. She developed a fast, easy, step-by-step process that she guarantees will work for everyone. She sells the complete plan with all the help and instructions for $47.00.

I know what you are thinking…”another $47 down the drain,” and that’s kind of what I was thinking too. But, I figured that since she offers a 100% money back guarantee I had nothing to lose.

Well, I tried it and it was amazing. I got all of the negative items removed from my credit report and my credit score went from 553 to 715 in only 3 months. All I can say is that it worked great for me. I suggest you check it out. You can always get your money back if it doesn’t work for you. If it works even half as well for you as it did for me you will never even think about asking for a refund.

The information is on this site: http://clean-credit-secrets.com/

Answer 5

Credit Counseling Programs
http://www.complete-debt-info.com/category/Credit-Counseling-Programs.html

Answer 6

When I met my husband he was in serious debt being an Airman in the military. I put him thru discount debt all the interest rates were lowered to 0% - 6%, we pay a small fee, and we make 1 payment per month for all the credit cards. We finally are down to 2 credit cards in the program still!! He had over 20 credit cards when he was single and all were maxed out! I have been helping my brother with his debt paying more each month, but the interest rate is so high, now since he lost his job he is getting behind again. With discount debt if you are not working they work with you. They waive their fee, and work getting the interest rate to 0%. I would never recommend credit repair or bankruptcy they ruin your life. I filed bankruptcy when I was single mother in 1996. I just recently was able to get a credit card for $2000.00, but the interest rate is so high. I rather pay cash for things. The great thing is once you finish paying your debt thru the credit program they give your 1st mo payment back to you.

Answer 7

stay away. you may no longer rebuild your credit while you're coping with them. Pay your expenses on time, each month without fail. Then make constructive your good credit historic previous is stated to the credit bureau. do no longer use your charge money owed, you % to pay them down, now run them up. Pay each little thing on time. gradually your credit status will develop. A credit counseling organization is a black mark that maintains for long once you now no longer use their provider. while you're paying a counseling organization, you're somewhat being silly.

Answer 8

start paying every month on all bills.....if you have many and paying on them seemed to be taking forever....check to see if some are medical bills....you might want to make smaller payments to them then the others...house, car, student loans, and credits cards should be paid off 1st.........if you pay on the collection bills after a year or as long as two years they may consider taking them off your credit report if all are paid on time.......don't let collection agencies tell you they can't take them off...they can and do often....just talk nice nice to them and remember actions speak louder then words so before talking to a collection agency make sure they have received a payment recently and at least every 30 days therein.......credit cards are a different story as with bank notes and other institutional loans.....they stay on your report until statutes run out ...usually 7 years and............do steer clear of these so called debt consolidators....they do in a way help but they charge in most cases and actually take away your responsibilities.....do it yourself..it feels better watching your score going up!

Answer 9

Look up you local city and state credit counseling agency's. But just for educational purposes only. I believe almost every state has one. Setup an appointment and speak with them and have them help you.

I agree with the first answerer, a pay for service CCC will be a black mark on your credit.

Additionally you can do alot just on your own......Go to Myfico.Com and order the kit for $50.00 bucks it'll save you big time....GL, and let me know if you need anymore help :)

Answer 10

I have fixed my credit on my own. I've used the Dave Ramsey technique. I organized my bills by the ones that have to be paid, house, utilities ect. Then I take the credit cards or other things that needed payments. you put them in order from largest balanced to smallest balance. This is your debit snowball. You start paying the lowest balances first, as many as you can afford, get them done and out of the way. Then you start working on paying the larger ones. It would be very benificial for you to get his book THE TOTAL MONEY MAKEOVER. He also hold seminars. check out his website:http://www.daveramsey.com/ He also has radio shows you can listen to for free that are informative. Hope that helps