anyone have good exp. w/credit counseling?

[malaynab]

I am considering going to a credit counseling service. I would like to hear from someone who has used it for a while or is done and what kind of experiences you've had with obtaining credit after using credit counseling.

I am also considering contacting my credit card companies myself and explaining that if I can't work something out, I may have to file bankruptcy. (I will NOT file, but think the threat might convince them to modify my payment agreement). Has anybody done this?


Malayna

[joie]

Hi,
I looked into a credit counseling place...only problem was that they wanted me to close all my credit cards. Which sounds great--close them! never use them again! But, I live in Manhattan with my b-f and we basically live paycheck to paycheck, so I can't get rid of all my cards for fear we'll starve if we're extra short one month. It's probably a good thing to do if you can close them all.
I've tried to deal with the credit card companies myself too...I've never had much luck. Sometimes they'll offer to "close" the account for you, and maybe waive one late or over-limit charge, and possibly lower your % rate a LITTLE bit, but it was hardly worth it. It sucks. They are blood-sucking money grabbers who do anything to keep you in debt to them. I love when I'm way behind on (one of) my credit cards and then a telemarketer calls offering you all these great deals they'll just add to your account, etc. I always ask them now if they're going to pay my late charge and over limit fee if I agree to some stupid deal. What kills me is they KNOW you are struggling to pay the minimun every month, but they don't care, they keep trying to get you to spend more, be more in debt to them. It's really bad how they prey on college kids who turn into US--older 20s so deep in debt that we feel we'll never have extra $$ to buy a house or have kids.
Good luck.

[stephr721]

I was completely drowning in debt when I got out of college four years ago. I was fired from my job and really had no choice but to do consumer credit counseling. I did have to cancel all my cards, which was fine since they were all about to charge off anyway. It's been a long road, but I'll be finished paying off about $12K in debt in a few months. I don't have to pay interest on the cards, which made it possible.

I spoke with a mortgage lender a couple years ago to see where I stood and they told me that FHA (gov't lender) really has no problem with consumer credit as long as you've paid on time for a couple of years. Most lenders see consumer credit as an earnest effort to repay your debt, instead of weaseling out through charge off or declaring bankruptcy.

I have a couple of Providian cards that I managed to keep under the radar and that I've used responsibly. They aren't as good as Citibank and the like, but I'm just glad someone gave me another card so I could rebuild.

Overall, I had a good experience with consumer credit counseling. Make sure you use a non-profit - not someone that is going to charge you. I use Consumer Credit Counseling Service of Denver, and I'm sure they have one in your area.

It will effect your credit, but so does not being able to pay your cards. I read something wise on the Motley Fool once..."You didn't charge them all up in a day, don't expect to pay them off that quickly."

[angeltread]

instead of doing credit counseling, i went to a credit union and got a loan in the amount of my debt w/ a low interest rate. my dad had to co-sign though, so i don't if it will work if you can't get a co-signer. anyway, i paid off all my credit cards with the loan money and now i'm paying the loan back at half the amount per month that i was paying on each individual card. i don't know if that helps. it takes time to pay off debt but if you're diligent and patient, it will happen. i still have a year to go, but i can't wait!

[angeltread]

p.s. if you do what i did and get a loan instead of doing credit counseling, you don't have to close your cards.