How does a debt relief program work, and is it a good choose verses bankruptcy?
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I went into "consumer credit counseling" and they claim to pay your bills for you. You send one monthly payment to them and they are supposed to mail out your bills. They were sending mine late so i was getting hit with late fees. Also, when I applied for a mortgage to buy a house, I was told that these programs are looked at in the same way as bankruptcy and I had to stop the program in order to be approved for a mortgage. Bankruptcy might not be a better option, but I never noticed any big change in my payments or interest rates with the debt relief program.
If your debts are from credit cards you can do just what debt relief companies claim to do. Call your creditors and ask them to lower the rate so you can pay it off. They will freeze your account so you can't use it until it's paid.
debt reflief programs are suppose to consolidate and basically negotiate to make your debt lower, you pay them and they pay the companies... bankruptcy is never good so dont go down that path unless it is an absolute must but im sure you can clear it up it just takes time.. i searched online and this site came up maybe it can help
http://www.derekbeisner.com/credit_issue...
hope it helps! Good Luck
.The problem is with debt relief, all company's don't except there programs. An they don't have too either. For example of you own a hospital bill $9000.00 an the debt relief wants to send them say $10 or $20 a month. The hospital will come out better collecting it self. Cause they can send it on to a collection agency an they can file a lien or garnishment on your wages. It would take you forever to pay your accounts off an a lot of companies don't want to wait.
I had financial trouble and used Consumer Credit Counseling. They are non-profit and got my creditors to stop calling me. I sent them a monthly payment and they paid the bills for me. Also, the creditors had agreements with them that they would stop charging overage fees and late fees, and they lowered the interest (some down to 0%). The counselor who worked with me asked about all my spending, including haircuts, to come up with the best course of action. I was very grateful. Plus, unlike bankruptcy, once you pay off all the bills, it no longer shows on your credit report. I hope this helps.
P.S. Make sure to use a non-profit.
Debt consolidation is a better option than Debt relief, and Debt Relief is a better option than Bankruptcy.
There's a website here which discusses all this and which you might find helpful.
Good luck!
All of those services are pretty shady imo... I have found the site below useful for any questions like this - they are dedicated to discussions on debt...
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