Credit Conseling?

[Mark80]

I know these places are usually a Scam. And well almost everyone here is using the site because they filed bankruptcy. I have been on the fence to file myself for months and I am falling more behind. Anyhow the only reason I can't make it is secured debt. I have way to much and was borrowing off one account to make the minimums on others. After being a few days late here and there some of the more resonable accounts jacked up the interest rates. (29%) I am maxed out, out of credit and can't make the minimums anymore. IF I could get lower interest rates to open some breathing room I would make it. I called my creditors and they almost laughed at my request. This was the first step I read to do, call and negotiate. That didn't work because everything is maxed.

Anyways, the Credit consoling agencys say they can work down your rates and make everything into one payment. It sounds great right? Well we all know most of shady as can be and end up ripping off consumers and causing even more credit problems then you had before. But is there ANY reliable "real" places out there that can help in that situation?

If anyone knows of a legit place that could actually do something for me I would really appreciate hearing about it.


Thanks a bunch guys!

-Mark

[lrprn]

Mark, do a search here in the forum for "debt management" and "debt negotiation". You will find that many of us tried very reputable debt management companies that in the end were just a waste of time and money. Other members have tried debt negotiation with some success....except they didn't understand that when amounts owed are reduced by the lender, you pay taxes on the difference.

Bottom line....from our members' perspectives, using a debt management company or trying to negotiate your debt down with the original lenders may work for a few folks with little debt. For most of us, bankruptcy ended up being the only way out of the deep financial hole you describe.

What's stopping you from filing?

[Mark80]

I guess im worried that I will be so tight on monthly money that we will be just as stressed out as we are now. I also have a personal loan through my parents for 300 a month that will be paid off in 2 years and I am guessing the court wont recognize this and take it into consideration on my budget.


I just got off the phone with Clear Point Financial, after an hour of information they came back with saving me 165 bucks a month and thats "IF" the creditors agree to the proposal. Plus I am behind, but yet they said I need to be current before sending them a check for 768.00. I just got a feeling its gonna be very risky and make me nervous!