CreditQuestion about non-profit credit counseling services

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idonthaveaname
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CreditQuestion about non-profit credit counseling services

Postby idonthaveaname » Wed Apr 08, 2015 12:54 pm

Hello,
I had a question about some of those non-profit credit counseling services. I currently have a decent amount of cc debt 30k. Right now I'm working as a freelancer and when I do work its a decent salary. Of course I'm making all types of changes to reduce my spending. The problem is that the minimums are starting to creep up and the interest is a lot. I'm 31 and would prefer not to file bankrupcy as I'm just starting my professional career and am looking for any other alternative.

The one that I talked to seems professional but charges a $45 dollar monthly fee. I assume that would be lower after factoring in them being able to lower my monthly rate.

I'm a little unsure about how it this will look on my report, and the agent wasn't really able to give me an answer. Will the credit cards look as all closed? Or will it be a charge off balance that I will have to pay? I also know that paying down my balance will increase my score over time.
I was told that at $450 dollars a month they could help me pay it off within 5 years. Thats about 300 dollars cheaper than all the minimums I'm paying now so I could use the extra money to pay off other debts.
I'm also a joint account holder on some other cards so hopefully that will help.
What is your guy's opinion about these service. Can anyone recommend a legitimate one?


daniel2304
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Postby daniel2304 » Wed Apr 08, 2015 3:24 pm

I would not recommend any counseling if you are sure that you are making changes in spending habit. I think you can do most of the tasks that your counselor will do. First of all, take time to make phone calls to your credit cards to negotiate and ask them to lower your interest rate. Then, you can consider consolidation loan. This type of loan can be applied at any bank or financial services that you have relationship with, or on the Internet such as Lending Tree, Lending Club.

Some tips to negotiate with credit card companies can be found on the Internet. Be nice, ask them with honesty and show them your commitment to pay them back at a reasonable rate. Sometime it may help to drop the "bankruptcy" bomb on tough lenders, but that should be the last thing you should say.
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

idonthaveaname
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Postby idonthaveaname » Wed Apr 08, 2015 3:27 pm

I don't think my credit will qualify for any interest loans though. I've missed a couple payments with certain creditors so I'm not quite sure what to say to them to lower the rates if I haven't been a good customer

daniel2304
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Postby daniel2304 » Wed Apr 08, 2015 3:39 pm

It's not hurt to try. The counselor you paid (or not) will do exact the same thing. That's what they do. You know your situation best. If they can negotiate on your behalf, you can do it as well.
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

JamesMS
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Postby JamesMS » Tue Apr 14, 2015 1:58 pm

First off, 30k in credit card debt, wow. I wouldn't go the route of credit counseling as a first or second choice. While they may be able to reduce your monthly payments, I believe that it will show up on your credit report as such. This could in return hurt your credit. I agree with daniel2304, call the credit card companies and talk with them, especially if you really can or have changed your spending habits. They might be willing to work with you.
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