Credit Counselors...

[Contrary1]

Has anyone here had any recent experience with one? I bailed my daughter and her husband out of yet another financial crisis. I told them at the time that my help was contingent on them getting some credit counseling, and that next time, if there is one, they hit on his parents...who happen to be a whole lot better off than we are, or can ever hope to be.

Anyway, they saw one today. They can become debt free (other than mortgage and car payments) in 24 months. This well-known credit counselor already has agreements with the major credit card companies. Their new interest rates would be under 6%.

The company wants $50. to get started (not outrageous, imo), but they also want $80. a month to handle the accounts. That's the part that sounds high to me. But then, I have no experience in this matter.

The upside is that even with the monthly fee, they can make the payments; which they cannot do right now.

Any thoughts or info would be greatly appreciated. :hi:

[Droopy]

1. The only thing I would be worried about is their credit

If their credit score doesn't take a hard hit then I would tell them to go for it. If there is any way possible that they can do without the service I'd tell them to go that route. But I know this is the only way out for some people and if that is the case then so be it.

[Recovered Repug]

2. I just finished a program in December.

The fee was based on the monthly payment. $80 seems a bit high, but that hard to tell without knowing more.

[Contrary1]

5. I was just able to get her to share more info with me...

They are talking about 16 accounts here. :wow:
I had no clue they were that deep in debt. $5. a month per account doesn't sound so ridiculous now.

[YellowRubberDuckie]

3. MAke sure you go to a not for profit.

The other ones will just rip you off.
Duckie

[Deja Q]

4. I did it...

My score was shite at the time.

I went into the service, got most interest rates down to 0 or near 0%, and paid the $50/mo service fee.

It took 5 years, but my credit rating improved big-time.

That's FAR better than bankruptcy...

I'm now handling credit rather better and avoiding the mistakes I used to. (I did re-open a couple of cards for the intro offers; but the oldest is in the freezer, not used, 0 balance, and the other I use for bills and necessary tools and gets paid off each month. I'll put it in the freezer come March for a while too; it can be too easy to use if I'm not careful. I've been good, needed some tools for learning a new trade and some ergonomic equipment so I don't screw up my body as I don't want to end up disabled or dead...)

[laylah]

6. Not recently;

however, there are plenty of "no fee" counselors out there. The biggest caveat is that one has to be willing to cut up ALL credit cards.