does debt counselers help?

Question

or is it just another scam

Answer 1

Many are Legit
many do help you with a plan
Many help you reduce interest rates

Youc an also do on your own -

I am now Debt free, 20 months ago I read Dave Ramseys Total Money Makeover which I borrowed from the Library. (My debt was greater then $70k - gone in 16 months).

The Debt snowball and his other plans work.

I have all his Excel Spreadsheets and a few of my own if you want them.

Answer 2

Well, they can and they can't be scams. Most are.

All I can say is that I checked into a few a while back, and they all promised miracles of sorts. Then, I lucked across an honest fella who went over my credit portfolio and he said that several creditors cards were privately owned, so he could not make any deals with them (like department stores), and the few he could do were were ones I could do myself.

So, I merely shifted my strategy. Locked up the credit cards (all but one emergency one), and set at a specific amount to go toward paydowns. As time went by, one by one the credit cards were paid off, and my 'specific amount' to put down grew as each card was paid off. So, larger amounts were available to put down toward the next card.

It's taken a few years, but everythings under control, and I didn't have to pay for any service, book, seminar or consultation fee. I did it myself and walked away just fine. It just takes a real conviction & self-control (to say NO to goodies that come your way!).

Good luck! 041607 7:20

Answer 3

" When you are in deep debt and dont know how to come out of it, then you can approach a credit counselor, who would guide you. Credit counseling agency are filled with experts, to help you get out of debt. These agencies have programs which helps to solve the problems.

Debt management programs helps you to prepare a budget which help you to tackle the situation. You make an agreement with the agency to start the process of clearing your debts completely. The counseling agency then negotiates with your lenders, and fix a lower monthly payment.

Money management programs helps you gain more financial knowledge which leads to improvement in overall financial situation. As your knowledge about finances develop, your chances of getting into the debttrap in the future are minimized."

Answer 4

Using a credit counseling company reflects on your credit the same as a Chapter 13 bankruptcy.

Answer 5

I would say "NO" They can suggest what to do but if you don't do it, money wasted. I can tell you to quit smoking but if you don't, time wasted.
My father had the best idea " if you can't pay cash, you can't afford it and you probability don't need it any way" The easy way to buy things today is to charge it, the hardest thing to do today is to pay for it. I am not talking about expensive things like houses, cars do not have to be new, just affordable. It is the little things that one buys on the spur of the moment like IPods etc.

Answer 6

as long as it is totally free with no hidden cost then it is not a scam..they can do allot of good for you.They have more pull with creditors than you do by your self.Look for the non-profit credit counselors..if they say something about a nominal fee then go somewhere else...good luck

Answer 7

Yes they can help. They will work with your creditors to lower interest rates and payments. Normally you will make one payment to them and they pay your creditors.

Answer 8

It's not a scam, but they don't do anything for you that you can't do yourself.