Are there any good debt management companies out there?

I've heard that In charge solutions is a good company. I've heard that they are a non-profit organization.





We have a little over five thousand dollars in credit card debt and other misc. things.





We are only making two thousand dollars a month.





Any answers will be much appreciated!

Are there any good debt management companies out there?
It doesn't show up as a bankruptcy on your credit report. It shows up as consumer credit counseling either way you go, debt management or credit counseling. Either way you decide though, credit companies review them negatively. I work for a mortgage company and we require that you've been in them for at least a year and we show that you have a good standing payment history. Some lenders view them as bankruptcy though and require you to pay them off prior to you buying a home. If you can avoid it, I would. If you can pay them off on your own, I would find a way. Try to find a low interest credit card that you can transfer the whole balance to, like a 0% for the first 24 months and just pay, pay, pay and don't charge anything on it just pay it off.
Reply:Credit counseling is a great way to go if you have credit card debt that's around the $5,000 mark.





Most counseling companies are "non-profit" but there are a few springing up that are "for-profit."





Here's how they work:





They contact all your lenders and negotiate a "payoff" amount (or lower interest rate, same thing). In exchange you agree to pay the counseling company a fixed amount each month (usually for 3 years) and they distribute it to the lenders. Also - you will be required to cut up your cards. ALL of them. The counseling agencies typically won't let you keep back one card. It's all or nothing!





In exchange for this service they charge you a small monthly fee, built into your payments. They will also typically want you to set up the payments as a direct withdrawal from your bank account (so that the money goes out on time to the lenders).





It's pretty easy to set up and you can cancel at any time (although your credit card accounts won't be reopened).





If you want more information on credit counselors and a list of some good ones you can visit my website here:





http://www.1-800badcredit.com. I started this site to help people get the credit help they need.





Good luck to you!
Reply:Consumer Credit Counseling Services (CCCS), a non-profit company offering free credit counseling. They also have a debt management program available, if you qualify, for no fee. They can look at your finances and advise how to proceed.





Here's a link: http://www.nfcc.org/





Be aware there is a difference between counseling and debt management. Counseling is helping you set up a budget and assisting in payment arrangements but you pay your own bills.





Debt management is where you send the money to them and they pay your bills. This will show up the same as a bankruptcy on your credit.





If you only have $5K of debt, you can do it yourself. Make a strict budget. Eliminate all the extras -- eating out, cell phone, new clothes. Put every penny you can squeeze out of that budget on the highest interest rate credit card, while paying minimum on the rest. When the highest rate card is paid off, move to the next till they are all paid off.





You should be able to pay it off within 2 or 3 years.
Reply:by the time they wheel and deal with the creditors, you'll be already late. They don't look at the debt and see if they


are charge offs, or in collections or even if the debt is


valid.





www.creditinfocenter.com
Reply:Check into Cambridge Credit Counseling. I am currently using this company to help pay off my debt and I find it very helpful.