Has anyone ever used one of these services? I have heard of Profina and Consumer Credit Counseling Services (I am sure there are others) but I have never known anyone who has used them.
Well my Dh and I have officially enrolled in a Debt Management Program through Profina, a non-profit organization. They were able to save us $745.00 a month and we will be debt free in 4 years! Our monthly payment comes out of our checking account automatically so no more checks to write and mail.
DH's pay was recently cut back (almost in half). When I started to get behind I contacted my creditors and didn't get alot of help changing due dates and reducing interest levels. So as a last resort when we felt we had no other choice we contacted Profina.
This was the best thing we could have done. I don't have the worry I had before and I have received some very positive letters from my creditors applauding our decision to seek help.
While this is not for everyone it has certainly helped us!
I thought about trying that, but the companies I dealt with ( I don't remember the names ) both wanted to charge me an additonal amount equaling the same amout I'm in debt! I couldn't bear to do that knowing that I can just pay smaller amounts myself every month and as long as they're getting some money they usually don't care. I only have 3 credit card debts that charge interest and the rest are doctor's bills, so I don't really worry about my debt increasing, then I probably would've been ok parting with an additional $2000,
Dh and I signed up with Consumer Credit Counceling in November. Our debt has not changed at all. We have made the payments on time and in the amount specified and were told that in 2 years, we would be debt free, but not at this rate. We paid one creditor off by contacting them and making arrangements when we sold our house because they weren't recieving payments on time, which meant that we were getting slammed with late payment fees and they were threatening legal action. Consumer Credit was very upset with us because we had made the payment ourselves instead of paying them the money and letting them charge us an extra $30 for the transaction! The only good thing I have to say about them right now is that they keep the creditors from calling. All creditors look at Credit Counceling as a poor mans version of bankruptcy. If we'd known what joining CCC would do, we would have filed intead.
I stopped working because we couldn't afford day care anymore which was amounting to over $1200 a month. It took everything I made along with some of what dh made to pay for it. We weren't getting anywhere. We sold our house, paid some debts and now are renting until our credit is clean again, which could be years from now at the rate we're going. it's scary, hard and sometimes depressing, but I know this much, it is an experience that I'll try my hardest to never repeat.
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It does not seem fair that we are totally responsible for a life over which we do not have absolute control. But, that's the way it is. Get over it.
I am so sorry you both have had a negative experience with this. So far we are doing okay. We are coming up on our 3rd monthly payment with them and we are starting to see some results (I think) LOL!
I sure am glad you're having a good experience with Profina. I wish I'd know about them before and maybe my experience would have been different. I know that alot of programs are different from one another, some more forgiving and easier to live with...but I know this now only after extensive research into other companies. I think it was just that we were so desperate to find relief that we choose the first one that someone mentioned without really looking into it like we should have. oh well, experience breeds wisdom!LOL
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It does not seem fair that we are totally responsible for a life over which we do not have absolute control. But, that's the way it is. Get over it.
Kimmyo, I have a question for you. I heard on Dave Ramsey's radio broadcast (he's a Christian financial planner) that if you go through one of the CCCS orgs. or a Profina, there is still a "black mark" on your credit report for 7 years. It doesn't show a bankruptcy, but something similar. Did I misunderstand that, or is that similar to what happens?
Either way, I commend each of you for taking charge of your financial lives. Gosh knows we each have our tough times and many people just let it go until there is nothing more to do.
We were informed by Profina that while we are in the debt management program as long as the payments are made on time and consistent with the program, the only information that is reported to the credit bureau is that we are in a debt management program and all accounts are current. It is up to individual creditors how they perceive that. We did have to close all of our accounts, but that was not a problem for us. When we have fulfilled our agreement the credit bureau will show all accounts paid in full and current. Now whether or not this is a black mark or not I don't know and at this point it is not a concern for me. Not having to struggle to make my payments, keeping myself less stressed and getting out of debt are my priorties. If that counts against me well I will just have to live with it! This was a personal decision and I made the best one fro my family. Thanks for the thoughtful words!
I have been using CCCS for quite a while and I have been very happy with what they have done for me. They reduced the interest to almost nothing so that my payments were almost completely applied to my debt. I have paid off one cc and working on the other one that will be paid off next year. And when I signed up for the program, I had a lot of worry that simply disapeared. What they do is look at all your bills and help you fiqure out how much of a payment that you can afford. They contact your cc companies and negotiate a much lower interest rate than I could have on my own. And then you have the payment deducted out your checking account every month. Actually, once I got it set up, I didn't worry about it anymore, just let the checking accout pay the bill.
CCCS only handles unsecured debt, like credit cards.
Also, I just finished paying off a bank loan, and that will help me a lot.
And it does not seem to have affected my ability to get credit in any way that I am aware of.
In 2006 we took out a debt consolidation loan with Citi Financial in Queen Creek Arizona. They did the automatic withdrawl from our checking every month. We had no problems. Then we figure we will get a little more money loaned and went to their Apache Junction office. Big mistake. The first payment with this office wasnt even taken from our bank account. Needless to say here come the late fees and penalties. Yet it wasnt our fault. After a year or so later and a lot of arguing with the help of their district manager were able to close the account with Apache Junction and move it back to Queen Creek. Anyone else have problems with Citi Financial.? Be careful out there. Jackie
Debt Management Programs 
