What Debt Management Option is Best Here?
November 6, 2007 10:50 AM   Subscribe

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.

posted by miltoncat to Work & Money (8 answers total) 11 users marked this as a favorite
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

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