Has anyone done credit counseling?

Anyone do this and who did you go thru? Have you had good experiences with it?

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Anonymous

Asked by Anonymous at 6:48 PM on Jan. 6, 2009 in Money & Work

This question is closed and filed in the CafeMom Encyclopedia.
Answers (16)
  • Don't it is a form of Bankruptcy. It will ruin your credit even worse..
    sydsmom2

    Answer by sydsmom2 at 6:49 PM on Jan. 6, 2009

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  • really? o thank you so much! we havent looked to much into it yet.
    Anonymous

    Answer by Anonymous at 6:51 PM on Jan. 6, 2009

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  • It does not ruin your credit in the least. You are not able to get any type of credit for the remainder of the program. But after that you have a wonderful credit rating for having paid OFF all of your bills. I did it twice before and never had a bit of issues. The creditors actually look at it in a very positive light, for two reasons: 1) You paid OFF all of your bills instead of bankruptcy and 2) you finished the program, which takes effort on your part.

    It is in NO WAY a form of bankruptcy... Bankruptcy involves the legal system, this does not.
    pupmom

    Answer by pupmom at 6:53 PM on Jan. 6, 2009

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  • All I know is, my mom did it years ago and tried to co-sign on a loan with me and they wouldn't because of it. The loan officer told her that it was a form of BK. It is like Chapter 13, where they combine your debts and you pay a percentage. If you are considering, I would just go ahead and file BK.
    sydsmom2

    Answer by sydsmom2 at 6:53 PM on Jan. 6, 2009

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  • O great! I will have to look into it. I guess it depends on which place you go to??
    Anonymous

    Answer by Anonymous at 6:55 PM on Jan. 6, 2009

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  • I was going to but then I saw how much they was charging me to go through them and I was really horrified. They wanted to charge over $200 a month. I am not sure where they thought we would get all that money from.

    What I did do on my own though was called my credit card companies and asked for a lower rate just like the counseling people would have done. Some credit cards wouldn't but others were really nice and I got my interest lowered a lot.
    Anonymous

    Answer by Anonymous at 7:00 PM on Jan. 6, 2009

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  • Alot of credit card companies dont want to give lower interest rates because of the economy. I guess it wouldnt hurt to call and ask though. Thats a lot of money!
    Anonymous

    Answer by Anonymous at 7:02 PM on Jan. 6, 2009

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  • I actually went thru Consumer Credit Counseling. I never had any problems. Chapter 13 would involve, again, the legal system. This in no way affects your credit, only for the better. My daugher uses Alliance. It is really a great way to pay off your bills and NOT file for bankruptcy. Look into it.

    The other difference between this and bankruptcy is that you ARE paying off your debt, not discharging it.

    Consumer Credit Counseling is FREE, but I think it is now Clearpoint or something like that.

    Yes, credit card companies won't give you reduced rates, but they will the Credit Counseling Agencies.

    Good luck.
    pupmom

    Answer by pupmom at 7:18 PM on Jan. 6, 2009

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  • No it is not a form of bankruptcy. I went through these people http://www.creditcounseling.org/ and they were great. They took all my bills and contacted creditors and got settlements on things I could pay right away and were able to get interest and what not dropped on many of my bills. Instead of paying 20 bucks here and there I had one payment for ALL my debts and agreements for them to come off my credit. They also work on a budget with you do you dont live outside of your means etc. They were great and its free.
    gemgem

    Answer by gemgem at 7:20 PM on Jan. 6, 2009

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  • pupmom is correct. It does not ruin your credit, it only helps it. The only way it might show negatively is if you do not finish the program you started. Otherwise, it can only benefit you in the long run.
    Anonymous

    Answer by Anonymous at 7:21 PM on Jan. 6, 2009

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