Has anybody ever used AmeriDebt, or companies of the like?

Hey Rocketman95,

I was a complete moron in college and managed to rack up about $7,000 in credit debt... Just one of those people that had to learn the hard way.. you know?

Anyway, I went through Consumer Credit Counseling Services and they combined all my bills and made payments so that I only made one payment a month to them. They also were able to get interest rates either dropped or reduced and got a couple dates wiped out for considerably less than I originally owed. Anyway, I'd pay $200 or so a month ($15 to them and $175 spread out over various debts). As my income got bigger, I started making bigger payments and was able to get out of debt in about 2 years. I don't know how bad your position is, but this definitely helped me.

I think you can find them online.

 

RM95: My wife and I incurred very heavy debt a while back and went to Money Management International through CCCS. We have been VERY pleased. Email me privately if you want a laundry list of the good and bad. Suffice it to say I highly recommend it if you really are having trouble managing your debt.

 

I too recommend debt consolidation.
I used GE Capital and was rather pleased. Although there were quick to threaten me with "debt collector letters" if payment was even a day late! (b@stards)

I did my get debt paid off and am pretty happy....

rH

 

Hey Rocketman95,

My future in-laws have recently used AmeriDebt. It helped them out tremendously, they were paying off house, car, and card notes, and it was killing them. I don't know how using a service like that would affect your credit rating though.

3fingeredgus,

You're freaking me out! You only had $7000 in debt and you turned to a service like this? Sheesh, maybe I need to consider it also. I'm about 6 times as much in debt as you are, and like RM95, I have a girlfriend I'd like to propose to. I had no idea getting married could be so expensive. Until I met her, I had no idea what platinum meant. Now I know that platinum is going to put me into further debt!

 

Well, here's something to cheer you up. I know a guy in his late 30's still trying to pay off college tuition/partying debts... the sad thing is he's still about $35k in the hole. Ow.

 

Don't feel bad. I'm in your range.

 

coma,

How old are you? I always thought you were in your 20's.

 

Rocketman95,

Just a heads-up, most of these debt companies are financed by the credit card companies/banks. They are good because the cards are willing to reduce or freeze interest rates to help you pay the debts off, instead of going bankrupt. If things get bad, just remember who they work for.

 

Cohen,

That isn't true of CCCS. They are a non-profit agency funded in part by credit card companies but also by the government and regulated by the fed as well.

 

DoD,

You're correct. I am in my 20's. 25 to be exact.

So uh, I'm afraid to ask, but what gave you the impression I was in my 20's?

 

You're a complete dork.

J/k. I have no idea really... just the way you type. I just "guessed" you were that old. Man, what the hell kind of partying were you doing to rack up that kinda debt?!

Or was it just that good ol' college ejukayshun that ripped a hole in your wallet?

Anyway, I know it's personal stuff, so no need to respond. I was just curious.

 

So all this time I've thought that $7grand was a huge amount of debt and that I was very atypical of most people. I'm kind of pleasantly surprised to hear that you guys don't consider that debt very large. I guess when I came out of college and started off making $7 an hour, it seemed like I was a long way off from paying off that debt. My main problem was too many creditors so it made it hard to pay them all each month. That's really where CCCS made things easier.

Now, I have some medical debt to take care of. I had a really rough year in 2000 and I'm still recovering financially from having really crappy insurance that forced me to pay for a lot of services that would have been covered if I had better insurance. Oh well, my debt now is under $1000 so I guess I'm doing pretty well.

 

If you are thinking of getting married and trying to buy a house, please note that mortgage lenders view programs like CCCS as similar to a bankruptcy.

If you want to buy a house, you are far better off negoitiating payment plans with each lender in exchage for no negative reports on your credit. Reorganizing your debt shows up as a late payment and you can't have any late payments showing for the last two years if you want the best mortgage interest rates with minimum down payment.

 

This is not completely true. Lenders view CCCS as far more prudent action than late payments, etc. In addition, joining CCCS does not necessarily mean all the creditors will chalk it up as late or collection. Many of the larger companies record it simply as normal payments.

It is a strike against you but it isn't even in the same ballpark as bankruptcy.

 

I'd like to point out something about all this. A couple of years ago, I heard an interview with Alan Greenspan and he was asked what Americans could do to reduce the national debt. He said that the number one problem facing America financially was the accumulation of debt by individuals and families and that paying off that debt was the most important thing anyone could do because it frees up the money you would have used on interest for goods and services.

My wife and I stopped using credit a few months ago. I don't ever intend on having another credit card, bank loan or car loan again. Mortgages are the only exception and only because they are so large.

However, nearly every financial planner will tell you that the best way to handle your finances is to pay of debt and do not incurr any further debt. If you want something, save up your money and pay cash. Even interest free loans from stores are too much temptation most times. The reason they offer is because fewer than 5 percent of people who get them pay them off before the grace period ends.

The irony here is that the side that I most frequently find myself on when it comes to debt is that of conservatives. Nearly every book I've read or talk show host I've listened to who advocates not carrying debt is conservative - right-wing conservative more often than not. So, I guess we do have something in common!

 

Let's not get hung up with semantics Jeff. I am not saying that people who use CCCS are not responsible. I have been in trouble with debt before, just like almost everybody that I know.

I am only referring to how mortgage underwriters and the new computerized desktop underwriter system views the reorganizing of debts through CCCS.

In both cases, the underwriter sees renegotiated payment plans and late payments. Your credit report score also suffers. You cannot qualify for a FHA or conventional mortgage at the best rate with a minimum downpayment in this situation without waiting two years from the last 30 day late payment.

I just wanted Rocketman95 to have all the information before he makes a very important decision. If he does not plan on buying a home for 3 or more years, my point is irrelevant.

 

DoD,

Yes, it's all from my edumacation.
Harvard and then Princeton for my masters was not cheap!

But it was all worth it. My work in the field of data encryption is a highly satisfying one.

Anyhow.

Two cars and an entertainment system defintely has me in the hole.
The big screen is worth every penny though. You'd be amazed at how white
Cuttino's teeth are!