Debt Relief

**Reality Czech** · 07-08-2010, 04:52 PM

Anyone here have any experience with debt relief?

I am referring to getting help with falling behind with credit card and mortgage payments. There are advertisements on the radio, TV and internet from "companies" that claim to be able to help and then there was a Federal Act to help people out during these times but personally I don't know much about it.

If you (or someone you know) has gone through this and can share your expierence that would be great.

(I was going to start this with "A friend of mine confided that she is in some financial trouble" but figured eyes would be rolling as mine would be too.

)

I would really love to pass on some GOOD information and possibly help a "friend" out!

**Litter Box** · 07-08-2010, 04:56 PM

Originally Posted by Reality Czech

Anyone here have any experience with debt relief?

I am referring to getting help with falling behind with credit card and mortgage payments. There are advertisements on the radio, TV and internet from "companies" that claim to be able to help and then there was a Federal Act to help people out during these times but personally I don't know much about it.

If you (or someone you know) has gone through this and can share your expierence that would be great.

(I was going to start this with "A friend of mine confided that she is in some financial trouble" but figured eyes would be rolling as mine would be too.

)

I would really love to pass on some GOOD information and possibly help a "friend" out!

Try Google !

**Sycamore** · 07-08-2010, 04:56 PM

Well, that's not helpful.

**Reality Czech** · 07-08-2010, 05:01 PM

Originally Posted by Litter Box

Try Google !

I've "Googled" a few times but they all seem like advertisements and was hoping for someone to reply with positive experiences or recommendations.

**Litter Box** · 07-08-2010, 05:03 PM

Originally Posted by Sycamore

Well, that's not helpful.

If someone is going to bitch and moan on the Internet Google will show it. Try looking up products you have questions about. The base is much larger than PS.

**PhillyKev** · 07-08-2010, 05:09 PM

Bottom line, any "debt relief" you have to pay for is a scam. There are some non-profit "credit counselors" who assist you in contacting debtors and working out payment arrangements. You have to be careful though, check out anyone you consider with the BBB.

Start here: NFCC: Find a Counselor Now

**toxigal** · 07-08-2010, 05:29 PM

Originally Posted by Reality Czech

Anyone here have any experience with debt relief?

I am referring to getting help with falling behind with credit card and mortgage payments. There are advertisements on the radio, TV and internet from "companies" that claim to be able to help and then there was a Federal Act to help people out during these times but personally I don't know much about it.

If you (or someone you know) has gone through this and can share your expierence that would be great.

(I was going to start this with "A friend of mine confided that she is in some financial trouble" but figured eyes would be rolling as mine would be too.

)

I would really love to pass on some GOOD information and possibly help a "friend" out!

i used a debt management plan about 15 years ago. i found it to be a positive experience. like phillykev said dont' use anyone you have to pay for and check out the company.

i would spend some time here:

National Foundation for Credit Counseling

and here:

Fiscal Fitness: Choosing a Credit Counselor

**Reality Czech** · 07-09-2010, 08:58 AM

Thank you, I will check out those site you mentioned above.

I will be printing and forwarding the information (this older lady is not too tech savvy) hopefully help or an arrangement can be made.

If anyone else has any information/experience to share it would be appreciated.

**Moonraker** · 07-09-2010, 09:32 AM

As obvious as it sounds, have her ask her bank(s). I met a legitimate credit counselor whose main business was tutoring first time lenders. A bank was her client and required first time lenders (at the least) to attend the one hour session. I recall her mention of other services, but did not delve deeper. At least this is one decent lead for your friend.

**Litter Box** · 07-09-2010, 09:42 AM

Originally Posted by Moonraker

As obvious as it sounds, have her ask her bank(s). I met a legitimate credit counselor whose main business was tutoring first time lenders. A bank was her client and required first time lenders (at the least) to attend the one hour session. I recall her mention of other services, but did not delve deeper. At least this is one decent lead for your friend.

Shouldn't that be first time borrowers ?

**phillysw** · 07-09-2010, 11:05 AM

Consumer Credit Counseling Service of Delaware Valley. It's a nonprofit group, and it's legit. There are LOTS of scam companies out there--this NY Times article is a good place to start to be sure you avoid them and understand their tactics:

Peddling Relief, Firms Put Debtors in Deeper Hole

**PhillyRising** · 07-11-2010, 01:00 PM

Originally Posted by phillysw

Consumer Credit Counseling Service of Delaware Valley. It's a nonprofit group, and it's legit. There are LOTS of scam companies out there--this NY Times article is a good place to start to be sure you avoid them and understand their tactics:

Peddling Relief, Firms Put Debtors in Deeper Hole

I got into some financial issues 5-6 years ago and went to Consumer Credit Counseling Service of the Delaware Valley in the summer of 2006. They are legit. I am almost done with the program. I had about $14,000 of CC debt back then and I am down to $2,000 now and it will be all paid off next spring. Once you are on their program...you will realize you can live without credit cards.

CCCS does not get you a reduced balance for you to pay. What they do is negotiate with your creditor on a lower interest rate for you to pay on your balance. I think they got my Discover Card at 9%. Then, they set a monthly payment that is sent to your creditors each month. You have to pay CCCSDV each month a set fee that covers all your debts for each month that includes their $25 monthly fee. As you pay down each debt, that take that money and add it to another debt which pays down that debt faster. You keep doing that until you get to your last debt and the whole monthly payment goes to that.

The down side to this is that you cannot use your credit cards anymore and you can't open any new ones. If you want to take on a loan of any kind, you have to get their permission. They are trying to get you out of debt...not making it easy for you to get new debt before you pay the old stuff off.

They also work with you on your mortgage if you are behind. I was not in the position. When we got into money problems due to a layoff, I kept paying the mortgage, utilities and car and let the credit cards go. I only needed help paying off the unsecured debt. I started out with three credit card accounts needing to be paid down. One was paid off less than 2 years later in 2008 and the second one will be paid off this month. That leaves my Discover Card and that has only a $2000 balance left (originally $9000). CCCS will be sending $285 a month starting next month and that balance will go down quickly.

**LoveMyCats** · 07-12-2010, 08:01 AM

I too say Consumer Credit Counseling Service of Delaware Valley. This is what they do! They are a real company that a bankruptcy atttorney would send you to.

**Reality Czech** · 07-12-2010, 08:27 PM

Originally Posted by PhillyRising

I got into some financial issues 5-6 years ago and went to Consumer Credit Counseling Service of the Delaware Valley in the summer of 2006. They are legit. I am almost done with the program. I had about $14,000 of CC debt back then and I am down to $2,000 now and it will be all paid off next spring. Once you are on their program...you will realize you can live without credit cards.

CCCS does not get you a reduced balance for you to pay. What they do is negotiate with your creditor on a lower interest rate for you to pay on your balance. I think they got my Discover Card at 9%. Then, they set a monthly payment that is sent to your creditors each month. You have to pay CCCSDV each month a set fee that covers all your debts for each month that includes their $25 monthly fee. As you pay down each debt, that take that money and add it to another debt which pays down that debt faster. You keep doing that until you get to your last debt and the whole monthly payment goes to that.

The down side to this is that you cannot use your credit cards anymore and you can't open any new ones. If you want to take on a loan of any kind, you have to get their permission. They are trying to get you out of debt...not making it easy for you to get new debt before you pay the old stuff off.

They also work with you on your mortgage if you are behind. I was not in the position. When we got into money problems due to a layoff, I kept paying the mortgage, utilities and car and let the credit cards go. I only needed help paying off the unsecured debt. I started out with three credit card accounts needing to be paid down. One was paid off less than 2 years later in 2008 and the second one will be paid off this month. That leaves my Discover Card and that has only a $2000 balance left (originally $9000). CCCS will be sending $285 a month starting next month and that balance will go down quickly.

Thank you all, this is the type of feedback I was hoping to get! I will do a little research of all above mentioned and pass it along. Let's hope for the best!