it does help, like he said, if your debt is from credit cards.. I disagree with the notion that if you are going to pay more or less the same amount as before, then is the same and not worth it. The issues are not the payment amounts but the fact that if you owe that much money and "only" can pay the minimum, then you will never pay them off.. with credit counseling agencies' help, you will be debt free in 48 months
I get what you are saying, but most people turn to CCC because they ARE struggling with the monthly payment. Most people don't, let's be honest, suddenly decide to drop everything and get out of debt (Dave Ramsey notwithstanding). It takes a motivating, usually negative, trigger. That trigger is the realization that they run out of money each month. CCC usually doesn't solve that problem. We also know this from the few brave CCC companies that will release success rates, that rates are less than 50%.
Not true, in my 3rd year and my monthly payment is about 38.5% less and the debt is getting paid sooner rather than later for 62k in credit card debt. My capital one cards went from 26% interest rate to 2%. Total monthly payment creased from $2166 per month to $1333 per month and $833 savings per month in interest. For the remaining loans, I simply negotiated directly with lenders the best I can. Small minuscule ding in credit because accounts needed to close and my debt ratio increased. But zero late payments, zero defaults. Far better than 10 years of a reported bankruptcy on credit report and 1000 times better than debt relief which annihilates credit score. Plus, you’re paying back what you actually borrowed. There’s a certain amount of pride and satisfaction in that.
Nowhere did I say it never works. However, for the few companies that actually release success data, the success rate is less than one-third. I am glad it worked out for you. Note that bankruptcy doesn't kill your credit for 10 years. It is reported for up to 10 years, but credit scoring only factors it in for the first 2-3 years. I wonder how much better you might have been had you been able to save all $2166 for 36 months ($77,976) instead of just $833 ($29,988). Granted, if you could still afford to pay $833 per month, you probably wouldn't have qualified for Chapter 7 bankruptcy. Unfortunately, most people who start consumer credit counseling really can't afford any payment.
Very informative video thanks sir i really suffering with debt problem due to recession can i know if i go for this consumer credit counseling is it safe to do it and how many years its gonna affect negative on ur credit please answer for this thanks
Ultimately, being in debt and not being able to consistently pay it on time is what kills credit. So, the length of time for any "viable" solution to get out of debt is meaningless. You have to find the solution that is "right" for your situation. For most people, that solution is bankruptcy, but they wait far too long and try other "wrong for them" solutions before figuring out they should have filed bankruptcy all along.
it does help, like he said, if your debt is from credit cards..
I disagree with the notion that if you are going to pay more or less the same amount as before, then is the same and not worth it. The issues are not the payment amounts but the fact that if you owe that much money and "only" can pay the minimum, then you will never pay them off.. with credit counseling agencies' help, you will be debt free in 48 months
I get what you are saying, but most people turn to CCC because they ARE struggling with the monthly payment. Most people don't, let's be honest, suddenly decide to drop everything and get out of debt (Dave Ramsey notwithstanding). It takes a motivating, usually negative, trigger. That trigger is the realization that they run out of money each month. CCC usually doesn't solve that problem. We also know this from the few brave CCC companies that will release success rates, that rates are less than 50%.
This only works for people who can pay it off, but want it done sooner than the interest would allow
well im about 14k in cc debt and considering ACCC really dont know what to do atm
Not true, in my 3rd year and my monthly payment is about 38.5% less and the debt is getting paid sooner rather than later for 62k in credit card debt. My capital one cards went from 26% interest rate to 2%. Total monthly payment creased from $2166 per month to $1333 per month and $833 savings per month in interest. For the remaining loans, I simply negotiated directly with lenders the best I can. Small minuscule ding in credit because accounts needed to close and my debt ratio increased. But zero late payments, zero defaults. Far better than 10 years of a reported bankruptcy on credit report and 1000 times better than debt relief which annihilates credit score. Plus, you’re paying back what you actually borrowed. There’s a certain amount of pride and satisfaction in that.
Nowhere did I say it never works. However, for the few companies that actually release success data, the success rate is less than one-third. I am glad it worked out for you. Note that bankruptcy doesn't kill your credit for 10 years. It is reported for up to 10 years, but credit scoring only factors it in for the first 2-3 years. I wonder how much better you might have been had you been able to save all $2166 for 36 months ($77,976) instead of just $833 ($29,988). Granted, if you could still afford to pay $833 per month, you probably wouldn't have qualified for Chapter 7 bankruptcy. Unfortunately, most people who start consumer credit counseling really can't afford any payment.
As he stated that some Credit Card Companies will accept it and some will mark you late for not receiving payment in full!
Thanks appreciate this info
Very informative video thanks sir i really suffering with debt problem due to recession can i know if i go for this consumer credit counseling is it safe to do it and how many years its gonna affect negative on ur credit please answer for this thanks
Ultimately, being in debt and not being able to consistently pay it on time is what kills credit. So, the length of time for any "viable" solution to get out of debt is meaningless. You have to find the solution that is "right" for your situation. For most people, that solution is bankruptcy, but they wait far too long and try other "wrong for them" solutions before figuring out they should have filed bankruptcy all along.
Very helpful, thank you!
Glad it was helpful!