Anyone do credit couseling?
What company did you use, and were they good?
Member since
Anyone do credit couseling?
Member since
Re: Anyone do credit couseling?
I did it - email me... I don't recommend it... you can do most of the same stuff yourself... I can tell you about my experience and who the company was... but I'd be happy to share my experiences and advice.
You can negotiate with your creditors for a lower interest rate (I've done it - email me and I'll tell you how to do this in a way that gets you the absolute lowest rate possible) and then you have to discipline yourself to pay a set amount. Lets say your minimum on a card is $200 and you set your APR lower - CUT UP THE CARD and forget it exists. Then pay $200 a month no matter how low the minimum gets until you can pay it off. That's exactly how counseling works. First off, you have to stop using the card and secondly, regardless of the monthly minimum you have to increase your payment over the minimum to make the balance go down. So if your minimum in Nov. is $190 but you pay $200 next month can be like $186 (depending on the interest rate), but continue to pay $200 - even when the minimum is $10... and it will drop steadily. Of course once your balance hits an amount you can afford to pay off, just do so... Then you still have open credit, you've shown potential creditors that you can pay off your debt, and the amount of time you've had the account will lengthen - ALL these factors up your credit score. If your account is closed it won't kill you but it's not as 'good'.
Counseling does not totally mess up your credit however - they do close the account and on your credit report under the particular creditor it will say 'in consumer credit counseling' HOWEVER... I got approved for a rather large mortgage with the words 'in consumer credit counseling' on MY credit reports. Then again FH's salary may have been more closely scrutinized, it's hard to say, but there was no hesitation to give us the loan.
You can do it yourself though - it's safer that way...
You can negotiate with your creditors for a lower interest rate (I've done it - email me and I'll tell you how to do this in a way that gets you the absolute lowest rate possible) and then you have to discipline yourself to pay a set amount. Lets say your minimum on a card is $200 and you set your APR lower - CUT UP THE CARD and forget it exists. Then pay $200 a month no matter how low the minimum gets until you can pay it off. That's exactly how counseling works. First off, you have to stop using the card and secondly, regardless of the monthly minimum you have to increase your payment over the minimum to make the balance go down. So if your minimum in Nov. is $190 but you pay $200 next month can be like $186 (depending on the interest rate), but continue to pay $200 - even when the minimum is $10... and it will drop steadily. Of course once your balance hits an amount you can afford to pay off, just do so... Then you still have open credit, you've shown potential creditors that you can pay off your debt, and the amount of time you've had the account will lengthen - ALL these factors up your credit score. If your account is closed it won't kill you but it's not as 'good'.
Counseling does not totally mess up your credit however - they do close the account and on your credit report under the particular creditor it will say 'in consumer credit counseling' HOWEVER... I got approved for a rather large mortgage with the words 'in consumer credit counseling' on MY credit reports. Then again FH's salary may have been more closely scrutinized, it's hard to say, but there was no hesitation to give us the loan.
You can do it yourself though - it's safer that way...
Member since
Re: Anyone do credit couseling?
if they want you to declare bankruptcy or anyting, don't do it.
Member since
Re: Anyone do credit couseling?
before they really start helping you, they screw your credit first.. My BM is a office manager at a debt consolidation company..
