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Taking the first step...need credit card consolid. help!

Date: Sat, 08/11/2007 - 07:35

Submitted by william_777
on Sat, 08/11/2007 - 07:35

Posts: 5 Credits: [Donate]

Total Replies: 11


Wow, I feel like I just joined AA or something :lol:

Anyhow, I'm 24, still living at home (with money-hungry parents), have a fiancee, a full time job, and way too many credit cards. Long story short, I have about 7 or 8 credit cards, many of which were used for emergencies, rather than on things I wanted (that's usually how it goes!). I'm living paycheck to paycheck in every sense of the word, and don't remember the last time I could buy myself something or treat my girl to something nice.
I just end up paying minimum payments to all my cards and all the other bills and I'm left with a dwindling bank account.

One of my cards I even stopped paying for a while, because I felt that they were being unfair with some late fees even though I made payments on time. Then they caught me off guard on the phone once, and I ended up authorizing them to take money out of my bank account every month. Needless to say, it really sucks.
The straw broke the camel's back the other day when I just got another past due fee on a card because some stupid account protection fee took it over the limit.

I really need a lot of help here. I have to sit down and see where I'm at, but I'm roughly over $6-7k in credit card debt alone, maybe more. For a person who doesn't make much and wants to live on their own, it's too much to deal with.

I understand my credit is horrible, and although I'm concerned about it, I really just want to free up my finances at this particular time. I just want to know what's out there, and who can really help me lower my payments, without any hidden fees or scams.

I do have some questions and if someone could answer them, that would be awesome.

1) If I fill out the form on the front page, I'm under the impression someone will call me and refer me to a local credit consolidation company in my state, correct? (I'm in Ohio)

2) If I do this, are all the companies that I'm referred to legit? As in, no hidden fees, hidden contracts, etc?

3) Are lower payments guaranteed? Or am I stuck with a company once I deal with them?

4) My credit cards become void when I do this, correct? (which is a good thing, I need to stop using them)

5) Does this truly hurt my credit even more? I heard that going through with consolidation shows the credit card companies that you can't pay your bills yourself (which is sorta true), and that they penalize you.

I think that's all I have. I can't think of anything else at the moment, but I'm just confused about all of this, and I didn't know where to turn to. I Googled everything I could, and most of the sites looked pretty shady. Then I stumbled across here and compared to everything else, it looks like a safe haven. I sure hope so. I really need to go in the right direction and take care of this once and for all.

Thanks.


Quote:

If I fill out the form on the front page, I'm under the impression someone will call me and refer me to a local credit consolidation company in my state, correct? (I'm in Ohio)


You are right. The consultant will offer you a free quote and offer different payment options. In case, you don't want to hire their services, tell them that you are not interested and they won't call you further. You can also find few more companies in the ranking chart.

Quote:
If I do this, are all the companies that I'm referred to legit? As in, no hidden fees, hidden contracts, etc?


Check for the company's feedbacks with the BBB and the attorney general's office. You will be aware if they have any complaints from the consumers.

Quote:
Are lower payments guaranteed? Or am I stuck with a company once I deal with them?


The contract must mention the payment details and the specific fees.

Quote:
Does this truly hurt my credit even more? I heard that going through with consolidation shows the credit card companies that you can't pay your bills yourself (which is sorta true), and that they penalize you.


Your credit won't be screwed considering the fact that you are already behind in your payments and there is no way of catching it up. In this program, a plan will be worked out and you just have to keep making the payments. Later, the creditors will update your file to the bureaus.

Since it's a weekend, I don't know if the consultant in your area is available but you will surely get the call on Monday morning.


lrhall41

Submitted by Flying Cats on Sat, 08/11/2007 - 14:30

( Posts: 479 | Credits: )


Thanks so much for the quick reply. As with many others, I just didn't know where to turn to, or what to do.

Now that you've cleared things up, I'm looking forward to this. This site seems amazing, and I hope I get the help I need - I've forgotten how long its been since I've had actual money to spend or save.

Hopefully I do get that call on Monday morning :) In the meantime, I'll definitely look into all the consolidation companies for my state via BBB. My main concern is the hidden fees - it seems everyone's in it for the almighty dollar.

Thanks for the ranking chart too, that really helps narrow it down!


lrhall41

Submitted by william_777 on Sat, 08/11/2007 - 15:17

( Posts: 5 | Credits: )


I know how it feels when suddenly a hidden charge pops out. Make sure that you have understood all the terms with the company. If it's not put in the contract before you sign it, you will never agree if they come up with some kind of charges later. It will be better if you have this thing in writing from the company you sign. Usually, if you are dealing with a legit company, they will always be upfront.

There are many more activities to do on this forum. Just keep browsing the pages and you will enjoy. Don't miss the Pub section. Perfect place to hang out and to talk about anything.


lrhall41

Submitted by Flying Cats on Sat, 08/11/2007 - 15:30

( Posts: 479 | Credits: )


Ok I have another question. Today I signed up on the main page to get a call from a debt consolidation company.

I was referred to Federated Financial Counseling Services, which seems like a legit company. Thing is, they're located in Florida. I'm in Ohio. I thought these companies had to deal with people in their state only? I'm really confused about this. Haven't gotten a call yet from them, and just wanted to know beforehand if I need to turn them down due to being in another state.


lrhall41

Submitted by william_777 on Mon, 08/13/2007 - 14:04

( Posts: 5 | Credits: )


Oh I definitely plan on following up on this thread soon. If all goes well, I'll also post a testimonial.

I agree with you, its hard to find a good company, especially where money is concerned. I was lucky enough to find this site alone, seeing as many out there are looking to scam unsuspecting clients. Again, thanks for the help, and hopefully I'll update soon!


lrhall41

Submitted by william_777 on Mon, 08/13/2007 - 14:54

( Posts: 5 | Credits: )


William...I will tell you I am in a debt management program and it was a God send...My monthly payment is easy for me to handle and I don't have to deal with any of my credit card companies calling me because I am late. I was told that after about 6 months of regular payments I should start to see and improvement in my credit score. Also the company I am with offered a credit class designed to teach you the right way to handle your finances...the good thing is once you pass the class a note is put on your credit report saying you took and passed the class. You might want to ask your new company if they have something like this too.


lrhall41

Submitted by Morningstarr430 on Mon, 08/13/2007 - 16:13

( Posts: 2329 | Credits: )