What Debt Management Option is Best Here?

November 6, 2007 10:50 AM

What is the best option as far as credit counseling/debt management/loan options?

I am about $17k in CC debt. I cut them all up a year ago. I'm paying them as best I can, but with some interest rates as high as 30% I'm barely moving. About half my paychecks go to CC debts and I am scraping by.

Before you suggest them, I've done it all: Read Suze Orman, Dave Ramsey. Called about reducing rates. Sold items I don't need. Living modestly. I have done everything there is to do.

I need help but don't want to get suckered in. I'm considering these options:

1. Consumer Credit Counseling Services (CCCS). I've heard good things overall but am a bit worried since each one is an independent office.

2. American Financial Soultions (used to be Genus). Also heard good things, and since I would keep getting my statements each month, could add more to pay it down when I can.

3. Go to my credit union and see what I can work out. But I am scared, because I've bounced a LOT of checks this year (they pay them and charge me overdraft fees) and worry my credit is so risky they won't give me a loan.


Help...

posted by miltoncat to Work & Money (8 answers total)

You don't say in the post, is all of your CC debt is still owned by the CC companies? ie not in collections?
posted by ian1977 at 10:55 AM on November 6, 2007

I used Money Management Intl based on AskMe reviews. I have been very pleased.
posted by k8t at 10:56 AM on November 6, 2007

I am in Atlanta andI and the folks I know here have been very happy with CCCS. I am using them too and am a few months away (knock wood) from being finished.

Getting the interest rate reduced on one card helped so much. Good luck - sunds like you are on the right track!
posted by pointystick at 11:02 AM on November 6, 2007

and I can't type for squat today. :(
posted by pointystick at 11:03 AM on November 6, 2007

I'm one of the people who recommended MMI. I think I've talked about them in several threads before.
posted by Lyn Never at 12:51 PM on November 6, 2007

Response by poster: Re: collections... No, I am not in collections, though I am a little behind on one card. I have seven (ugh) cards total.
posted by miltoncat at 1:22 PM on November 6, 2007

Definitely get involved with a CCCS. They have access to programs and interest rates that the credit card companies often will not extend to you as a private individual. When I was in a bad spot many years ago I WAS able to negotiate deals.. with everyone but Citibank, who told me point-blank they wouldn't reduce my rates but they would make lower rate deals with a CCCS.

It sounds like you've got a similar situation. Go for the CCCS.
posted by phearlez at 1:48 PM on November 6, 2007

I can't recommend Genus highly enough.
posted by killy willy at 9:01 AM on November 7, 2007