Jan
08
Has anyone had any good experience with debt reduction programs?
Posted ByI have done it once with dept consolidation program, but it appeared on my credit and totaly ruined it. Now i got a letter from other “not “consolitaional program, but debt mediation… I dont trust any of them, but I really need help in reducing my debts.
4 Comments
January 8th, 2010 at 4:23 am
I read that there are really a lot of unsavory characters claiming to do debt reduction. I would call the Better Business Bureau and maybe some place like the mental health Center who deal with debt reduction counselors and get some recommendations.
January 8th, 2010 at 4:48 am
Go directly to the debt reduction program without being recommended. A recommendation will cause you to have an extra $7 per payment/per month. So, if you have 5 credit cards that you want to pay off, it will cost you an extra $35 per payment every month. Not worth it.
Try to take out a personal loan with your bank or a secured loan and pay off your credit cards and re-pay yourself on a continual basis that the bank could set up for you or take out a pension loan. Less costly.
The best thing to do is compare, dollars and cents, per month against dollars and cents of corresponding programs, personal loan, secured loan, etc.
January 8th, 2010 at 5:37 am
nearly all are scams. avoid them. they do nothing that you can not learn to do yourself. They usually take your money and pay off little if any debt for you.
the only one that is decent is consumer credit counseling service. cccs.
using them will be like filing a chapt 13 as far as your credit reports go…
you do have other options. Get on a budget, live below your means, stop borrowing… start paying the debt off. Stop spending more than you make.
sell stuff to pay the debt off… sell so much stuff the kids think they are next.
follow the baby steps.
also, avoid the earn money online scams/urls people post here.. they are also bogus
January 8th, 2010 at 5:41 am
Heres’ a free personal finance course:
http://www.financialfreedomtrail.com/money_management_advice.html
Hers’ the beginning of the debt section:
http://www.financialfreedomtrail.com/money-management-advice.html