Anybody have any firsthand experience with credit counseling?

I don't have a poor credit score / not looking to declare bankruptcy / have made montly payment no problem for the last 5 years. I've stopped using my cards entirely. At this point, I have racked more in CC debt than I would like, and I'd like to be able to pay it off at a lower interest rate than what they are currently charging me. I'd ideally like to have a payment plan similar to a car payment, with a fixed rate + fixed monthly payment over fixed period of time.

Thoughts/feedback appreciated. I'll Google/research this some more this weekend. (Saw http://www.thewolfweb.com/message_topic.aspx?topic=393311 but >90 days and not really helpful).

6/13/2006 6:30:33 PM

doesn't sound like you need counseling, sounds like all you want is some sort of debt consolidation loan

6/13/2006 7:06:55 PM

one way to consolidate credit card debt is to wait for a 'no interest for 12 months' card, transfer all balances, pay off heavily, transfer to another 'no interest offer' just before the other expires.

repeat until paid off.

6/13/2006 7:15:36 PM

Make sure the place is legit: http://www.nfcc.org

Make sure that you do some research--I think the fact that you have used credit counseling/debt consolidation shows up on your credit report. If you're not having trouble making payments on the principal (i.e. paying more than the minimum), you may be better off not using counseling/debt consolidation.

[Edited on June 13, 2006 at 7:53 PM. Reason : link]

6/13/2006 7:52:22 PM

you should only do Credit Counseling if you are incapable of paying off the debt, you just want to do it faster.

Either talk to your bank about extending your overdraft protectection/line of credit (which is generally 5-7% interest) or do as PACKHunt suggested and transfer the balance to a card with an introductory 0% offer.

6/13/2006 7:59:14 PM

You should go to your bank and ask for a personal loan in the amount of, or exceeding, the amount of your debt. Talk to the loan officer personally and tell them that you made the mistakes when you were younger and immature and now you would like to get these things off of your credit. Ask them to take note that you have paid your bills on time for over 5 years. Before you go though you should make sure that your debt to income ratio is less than 47% or they will turn you down no matter what you say.

6/13/2006 11:25:51 PM

You can't borrow yourself out of debt. If you are not paying significanlty more than the minimum payment I would recommend a credit counsilor.

6/14/2006 10:32:37 AM

Quote :

"You can't borrow yourself out of debt. If you are not paying significanlty more than the minimum payment I would recommend a credit counsilor. "

that makes no sense. he's borrowing to save the 15%-20% (is that right?) interest he's paying. if he can transfer to a couple 0% cards or take out a loan at under 10%, he'll be saving some nice money.

6/14/2006 11:38:38 AM

Syn,

His intrest rate will be lower but if he continues to make the minimum payment he will still not get out of debt. He will only get worse slower.

I still stand by my recommendation. I know I have been there, done that.

6/14/2006 11:42:58 AM

I HAVE USED ONE BEFORE......THEY CHARGE YOU $40 A MONTH TO CONSOLIDATE YOUR DEBT INTO ONE LOAN.....AS LONG AS YOU ARE USING THEM YOUR INTEREST RATE WILL BE ZERO....YOU CAN DUMP THEM AT ANY TIME....ONCE YOU DO YOUR INTEREST RATES GO BACK UP.....MY CREDIT SCORE AFTER A YEAR OF BEING ON CREDIT COUNSELING WAS JUST FINE

6/14/2006 11:43:44 AM

The one I used charged $15 per month. Intrest on accounts was dropped to 2%. Paid of debt in less than 5 years.

6/14/2006 11:46:52 AM

Quote :

"He will only get worse slower."

I've thought about the 0% route. Rather than paying X amount of dollars every month in interest, it can instead be used to pay off the principal. I'm confused by this statement though ... how will doing this make things worse?

6/14/2006 12:00:38 PM

assuming your credit score is still good (which it sounds that way), get 1/2 low cards with 0% APR on balance transfers and transfer everything to those. watch the apr after that year is up tho, in case you dont get them paid off in a year.

6/14/2006 12:25:56 PM

Quote :

"I'm confused by this statement though ... how will doing this make things worse?"

i think he assumed that you would continue doing the things that got you into debt - to further worsen your problem

6/14/2006 1:37:08 PM