I just joined a debt management program

[WI_DEM]

Mentally I haven't felt this good in a long time. Credit Card debt is one of the worst fates that anybody can endure. It controls your life and it is a constant worry. I've always paid the minimum amount due, but it has gotten harder and harder. I've been late a few times and of course the credit card companies add fees. I determined not to declare bankruptsy--it is going to be harder for consumers to do so as it is.

Bottom line is that I had 11 credit cards and $35,000 in debt. I went to a company called Green Path, and was immediately put at ease. They are seeing so many more people they said in just the last four years (gee, I wonder why?). My councelor told me that just before I came in a 75 year old man came in with $100,000 in credit card debt. 75 YEARS OLD!! and having to worry about credit card debt. She told me I was in better shape than many people because, believe it or not, my debt isn't as bad as some and I'm relatively young.

Anyway, they will deduct automatically from my bank accounts every two weeks and work with my creditors and if all goes according to plan I will be debt free in 4.5 years. If I didn't do this and just kept on paying my minimum payments--I would be saddled with a lifetime of debt.

I urge folks if you are in a similar situation to seek out a reputable credit management program. This weekend I cancelled all of my credit cards, save one (they let me keep one in case of emergency--and it only has a $200 credit limit), it was tough to do, but I had to do it and today I feel like a load has been lifted. I can actually think of a debt free future.

[Shell Beau]

1. Credit cards are the devil!

:evilgrin:

[LynzM]

2. Good for you, dude....

On the right track, and just think about how awesome it will feel when all of that is gone!! :)

[Bunny]

3. Oh man, be real careful.

Many of these places do not have a good reputation. Make sure that your payments are being applied to your bills - check your statements each month, religiously. If you notice the slightest discrepancy, contact the company immediately and investigate it.

Congratulations on taking this step, tho. It's great to get out from under those evil credit card companies.

[WI_DEM]

7. I agree

I did check with up on Greenpath and they do have a good reputation. They also told me to examine my statements each month and if I see any problem to contact them (well, they also want me to send the statements to them each month to make sure the cc companies are following any agreement).

[Roland99]

20. Ayup...sometimes they can really screw your credit score.

They pay off one company at a time. Meanwhile, your other accounts go 90-, 120-, 150-, 180-days late and then collection/charge-off.

Check out http://www.mycreditkeeper.com to keep an eye on your credit report.

[TommyO]

4. Thanks for posting this

I've been considering this for a while, through my own stupidity, depression, and a breakup, racked up a fair amount of unsecured debt.

I've already checked out their website, and will probably give them a call later this evening.

[Debi]

5. I had just paid off a credit card (with only one to go!)

And the dogs needed their spring 'tune-ups' (with dental!)

And hubby and boy got sick and needed the doctor and Rx.

Now there is $700.00 back on the damn card and it will be 4-6 months before it's paid off again. ARRGGHHH

[JI7]

6. how did the debt get that high ?

was it some large purchases or did you just mostly use credit cards for almost anything and it just ran up along with the interest rates ?

i mostly use cash to avoid the mess people can get into with credit cards. i use credit cards for online purchases and even then i pay it off entirely when the bill comes.

i know the credit card companies are really aggressive so i can see how people can get in financial trouble with them. i don't think everyone realizes how easily the debt can increase if they don't pay it off when the bill first comes.

[WI_DEM]

8. Over time it has accumulated

I used it for various trips, projects, and lately even for a few bills. I have very little actually to show for it. I know I've paid my purchases off many times over on many of the cards, but the interest rates and various fees have kept them high. I also didn't stop using them cold turkey.

[pdx_prog]

9. My GF tried this company

that said they would eliminate her debt. They took payments from her for three months and NEVER paid the credit card companies ANYTHING. She had them calling her day and night....sending threatening letters and threatening her with lawsits. She checked the BBB website and found a never ending list of complaints.

Check the BBB web site....make sure a debt elimination / consolidation company has a good track record first.

[Lex]

11. Yikes!

That's terrible.

[Mutley]

10. Keep an eye on them

I signed up with a debt management program and they did quite well except for one thing. They told me they were making payments to ALL of my credit card companies, but then one day - two years after starting the program - I get a letter from one of the companies saying they only received ONE payment from my debt management company, and that because of the interest my balance is nearly DOUBLED!

Moral of the story - debt management programs CAN be a good thing, just keep a very very close eye on what they're doing.

[WI_DEM]

12. There are horror stories

and you are right, we have to research them--like any company there are reputable ones and others which are cheats. My councelor just e-mailed me the exact $$ amount they will be sending each month to each creditor. It is just as we agreed and again she said to make sure and watch my statements. They also charge no more than $50 per month for their services and as low as $25/mo. They have a good reputation and infact, it was one of my credit card companies who recommended them to me.

[Jessica]

13. I hope it works out for you. I recently went through my Credit Union.

And they're doing something similar for me - taking money out of each paycheck. But, they just cut me a check for the total amount I needed & I paid off the credit card. I was $6,000 in credit card debt. I paid about half off myself & got a loan from the Credit Union for the rest. I'm young, too & it felt so good to get that off my shoulders. It's nice to not constantly worry about ridiculous debt. If I go into debt again, it'll be for a house - not for stupid crap!

I'm glad you did this - and I hope they're a reputable company.

[WI_DEM]

14. Good job

Had my debt been less, I might have tried to do something similar to you, but I let things get too out of hand.

[pdx_prog]

15. I have never heard of Greenpath

Just know that those companies cannot do anything for you that you can't do for yourself.

What they do is let all your bills go past 90 days, then they tell the bill collectors to contact THEM instead of you. Then, they negotiate reduced settlement payments. I guess the thing they can do that you can't, is they have a cash reserve, so that when the VISA bill you owe $1,500 on says, "Okay, we'll take $1,000 to close the account," they have the cash and pay it. Then, you pay Greenpath or whoever monthly.

Your credit is totally ruined for several years after you do that though.
Your credit standing will repair in a much shorter amount of time if you just pay $25 a month (or whatever) to your creditors until you catch up.
The debt consolidation companies make their money by charging you fees. So, the $ that you pay in fees, you could have just paid directly to your bills.

[WI_DEM]

16. Some people can do it without help and others can't

They told me about the pitfalls. It can affect my credit--my credit is already affected as it is. I made the choice that I need somebody to help me--others may be strong enough to do it on their own. I do not ask anybody to get into this type of plan without first doing a lot of checking and understanding what their options are and situation is.

[pdx_prog]

17. Just be careful dude...:)

[WI_DEM]

18. As many of the responses have indicated, you must investigate

first before making any decision on a company--if this is the course you seek. The company I went with has been in operation since 1961 and is non-profit. Check with your state Attorney General office, local consumer protection agency and better business bureau before selecting a agency.

[faithnotgreed]

19. kick but READ ALL THE POSTS. this may help someone today

[johnnie]

21. Thanks for posting this

I am in a similar situation due to the awesome economy and no raises here at work since 2001. (Well, last year I got 3.2%).
I was thinking of filing chapter 7, but I don't think that is the way to go. I was going to go the route you have gone, so now I will look into it.