Internet's first get-out-of-debt community - 136,000 members

Posted: Mon Feb 05, 2007 9:02 am Subject: Just a few questions

Hello,

I am not deliquent on my accounts, however, I am sinking fast. I have heard so many horror stories about consumer credit counseling services I am scared to death to do it.

I spoke to an agency the other day and I told them my total debt. and what I could send each month and they told me how many months it would take to pay it off and that the money I sent in would be put into an account until I reached the total amount owed to all creditors plus their fee of course and in the meantime you just quit paying your bills...this sounds insane to me! Citibank is not going to wait 43 months to get their money!

Has anyone ever heard of this? Then I read online about people to send money to agencies and they never pay the bills, I have to be honest, I am scared to death right now. Glad to have found you guys.

Krista

Posted: Mon Feb 05, 2007 10:05 am Subject:

Hey Kris,
Welcome to the fourm, as you see this place is flooded with information and advice. You will also come across several individuals who are going through the same things as yourself. It's defiantly okay to be cautious and suspicious when it comes to these counseling services. Who wouldn't be when it comes to shelling over large amounts of money. I always advise people to do research on companies and don't always go with the first one. It sounds like the place you spoke with is debt settlement, they usually operate that way. Your first payment is usually the start-up payment and usually has to do with their fees. You keep making monthly payments until they have enough in your account to make an offer to a company to settle your debt. In the meantime your still stuck with dealing with the companies until they get some money. Consolidation works differently. You make a monthly payment to a company and then they disburse the payments to each of your creditors. Usually with consolidation they can get creditors to drop high interest fees and stop any overlimit or late charges.

Posted: Mon Feb 05, 2007 10:47 am Subject:

I would definitely do the homework before committing to any company. Definitely look into debt consolidation vs. debt settlement. Contact the BBB and/or your state department of consumer affairs to see if any of the companies you are considering have ever had any negative reports about them.

Posted: Mon Feb 05, 2007 12:10 pm Subject:

Here is a link that talks a little bit more about debt consolidation.

http://www.debtconsolidationcare.com/benefits.html

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