HELP!!!! We Are in Debt up to Our Eyeballs!

L., I can sympathize. I was there once - I went to Consumer Credit Counseling to see if they could help me out, and they were not very helpful! They had me write out a budget, and when the counselor saw that my outgo was more than my income, she just looked at me and said, "What are you going to do?" Well isn't that what she was for?!! Needless to say, I did not sign on with them. Since then I have also learned that if you use one of these agencies, and you ever apply for a loan ever again, you will be treated as if you have filed bankruptcy - this will affect your terms and interest rates. Shortly after that I found a book called "The Total Money Makeover." I can't say enough about this book - it is written by a financial advisor named Dave Ramsey - he has a daily radio show that can be listened to and downloaded online (daveramsey.com). The book is very simple - it's common sense money advice and it has tools and plans to help you get yourself out of debt. He has budgets, ways to deal with creditors, all kinds of good money tools. He is also very motivational and no nonsense. I tried all kinds of things when I was in debt - nothing worked until I found this book. It has been a lifesaver for me and my husband!!! The book can be found in major bookstores and libraries, it runs around $20 to $25 - if you are in the St. Louis area (I live in Oakville) and don't want to spend the money at this point in time I would be happy to lend you my copy. Feel free to contact me - good luck! ~E.

Hi L., I am going through the same situation right now. I just signed on with a Debt Relief Company, Preferred Financial Services. I did a lot of shopping around to find the right company. They do charge a fee, but I personally do not have time to deal with my creditors myself. You make a monthly payment to PFS and they contact your creditors to try to settle your balance for smaller amount than what you owe. I know it will hurt my credit, but I had no choice, I was not able to make my monthly payments on my credit cards and then have anything left over for household expenses. I haven't been in long enough to recommend them, but I definitely suggest shopping around as different debt relief companies have different relationships with different creditors. Most of my debt is with Bank of America and until I found PFS, all other companies told me BOA was very hard to work with. However, PFS says they have a good relationship with them. I am very afraid right now as I have never not paid a single bill on time, but I just keep praying I made the right decision. I wish you the best of luck! Feel free to contact me if you need support during this time.

You have to really sit down and weigh out all of your options. I am currently in debt management program thru American Consumer Credit Counciling, but my credit will take a while to get back into a good standing position. Call around, because they do really charge a fee even if they say they don't, trust me they get their cut. Make sure that this is the right decision. I know it is really hard, but do try to sit down and do a budget to see what other possibilties there are for you. Good luck, time are hard right now and it doesn't look like relief is close.
J.

Just as Laurie L suggested, my sister and I (she suggested this Service to me, too) also used Consumer Credit Counseling Service (CCCS) Agency: http://www.cccsstl.org/ I used the Service late 90s/early 00s, and it took me four years to pay off my debt.

It is non-profit, did not try to 'pull' anything, talked w/the CC companies, lowered the interest rates, made a monthly payment that worked for me that I paid to the Service each month. Then the Service distributed the payment to the CC companies. But you HAVE TO AGREE NOT to use CC during the counseling. You MUST MAKE THAT PAYMENT on time each month.

The Service did ask for me to make a service fee payment, but it was optional, I simply stated it would not fit in the budget at the time. And the fee was waived. ~L.

Hi L., I know some years back (maybe 8 or 10) We got into some credit card debt and medical bill issue's. We went through a place called Consumer Credit Counceling. We had a wonderful person go over everything with us and it really helped us pay everything off and move forward. They didn't pull any kind of scam moves at least back then. Sorry to hear about your situation. Try to stay strong and look for the light at the end of the tunnel. I'll keep you in my prayers. Good luck!

L.,

My suggestion would be to work with your creditors directly. You don't need a credit counselor if you have the time to call them and work out payment arrangements yourself. I would suggest that you and your husband sit down together and set a realistic budget that the two of you can live with. Make a list of your debts. You should always pay your mortgage first. That way if everything else fails, you will always have a roof over your head. As far as the rest of the creditors, call them and explain the situation, tell them what you can afford to pay them monthly. Unfortunately, you will probably have to do some drastic cost cutting, however it can be very empowering to take control of this yourself. If you do it on your own, you'll be saving the money that the credit counselors would be getting. Believe them, they are making something. I was in the same situation about 10 years ago, two houses, two many credit card payments, moving expenses. But we made it. If the two of you work together, everything will be alright.