Post of the Day
June 22, 1998

From our AOL
Credit Cards Board

Subject: My credit...
Author: GCanyon911

...counseling service shredded them, and now I have more cash in my pocket, 15 shredded credit cards, lower interest on many of them, no bad credit reports, and will be out of $48,000 debt in 3 and a half years, 5 years after I followed up on my New Year's resolution.

I found myself in this mess after an expensive divorce, assuming 50% of debt from my bachelor-pad minded spouse who spent like a gambler on credit cards just before we became financially independent from each other. I pay a fixed rate to my credit counseling service, they pay all my credit bills covered under our agreement, I can still buy things because my income is rising and "disposable" now has meaning to me...I actually have more cash in my pocket than I ever had when I was toting around fifteen credit cards. And the bonus is, when I'm done paying this fixed rate, in 2001, it will be like getting a cash raise...because, the money I send the service every month will be cash in my hand.

"The secret? Don't assume anymore debt while paying off debt."  

The secret? Don't assume anymore debt while paying off debt. They make it easy to follow...if I do, they give me back all my bills and tell me to try to offer my creditors the deal they get. I'm no Fool. I believe them. Here's some advice to those of you who need a service like this one.

1. It only costs $10.00 a month service fee (United Fund subsidized, non-profit organization)

2. You can find one of these services in just about every city and/or county in the U.S.

3. They negotiate with your creditors.

4. J.C. Penney is the only store credit card that reports this arrangement to your TRW credit type services. None of the others that I turned over, like Sears, Wards, Macy's, Visa, MasterCharge, Discover....none of these report the adjusted arrangement they make with the credit service. As a matter of fact, many of these places wrote me letters congratulating me on my effort to pay off my debts, and assured me that, when my accounts are all paid up, they will offer me credit again. Fat chance of my accepting that deal! Because...

#5...the credit counseling service offers education classes, free of charge to their clients (who can no longer afford ....initially, go anywhere at night or on weekends). They are really cheerleaders for their clients and know that if you listen to them, you will be using the word "disposable" to refer to more than just diapers and paper towels.

So, swallow that pride...consider this before bankruptcy...and prove to yourself that you can learn to be financially free. Credit providers are not your best friends concerned with your financial health...they only see one kind of "interest" in you. Good luck. Let me know how it turns out.



Reply From: LendrJim

Good post GCanyon911,

There ARE CCCS agencies in almost every metropolitan market. Just like any other service oriented business, you are bound to run in to good counsellors and good agencies but also to not so good agencies/counselors. By and large, I believe there are certainly more good.

My company deals with MANY different agencies of this type, including those who are "For Profit". We generally find that the NON Profits are better to deal with, and their plans have a better chance for success. There are many companies out there who will not deal with For Profit agencies at all, still others wont make interest/payment concessions to them.

  "Just like any other service oriented business, you are bound to run in to good counsellors and good agencies but also to not so good agencies/counselors"

I am glad to hear that your plan is going well. You may want to consider adding some to what you are sending CCCS monthly. I'm not saying all of the additional"Disposable"....maybe 1/2 or 1/3.. Even with the creditor concessions you are recieving, it is prudent to rid yourself of this debt A.S.A.P.

Upon completion of this debt elimination plan, you are likely to encounter a mixed bag of reactions when you apply for other credit. Some will still view this as derogatory...More will recognize the pay ethic you have demonstrated to successfully complete a plan like this.

Good Luck,

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