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Home > Ask The Get Out of Debt Experts > Am I Making the Right Choice to Go With Nationwide Financial Center and Their Credit Counseling Program? – Sally

Am I Making the Right Choice to Go With Nationwide Financial Center and Their Credit Counseling Program? – Sally

“Dear Steve,

Approx. 35K credit card debt, much at very high rates. I make my payments, but barely. I use the remaining credit each month in order to afford my payments.

Just signed up for Nationwide Financial Services credit counseling program.

The deal: Their fee is $1295, plus fifty per month servicing. For this they get me much lower interest rates, resulting in an ability to pay off my debts in 45 months instead of when I am dead. I tried once to get lower rates on my own — hahahaha. The total payment is just a bit less than what I pay now, but enough that I can afford it, especially knowing that I am paying it off instead of treading water.

The reason I went for this when I have rejected other offers is that they have pre-negotiated rates. Other companies say they will negotiate but it is vague. Now I have sudden fear that I have done a stupid thing, because I have always heard that you shouldn’t pay more than a small fee for counseling.

Is this sound? Am I an idiot? My sister thinks I should declare bankruptcy but is this reasonable for someone up to date on payments?

I ask this although I signed yesterday, because there is a ten day window to get out of it if I need to.

Attaching Adobe fireworks file with the quote I received. If you can’t open please let me know–can do a screen shot.

Sally”

Am I Making the Right Choice to Go With Nationwide Financial Center and Their Credit Counseling Program?   Sally

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The Answer

Dear Sally,

Wow, my alarm bells are going off like crazy.

If they charged you a fee to get going of $1,295 to get going on this program, RUN AWAY!!!!

A credit counseling program can offer you the reductions they show but there is no need to pay more than a nominal $50 fee to get going on a legitimate credit counseling program.

And then there is this mysterious monthly charge that’s stuck in your payment for a “consulting fee.” What the heck is that?

I think if you paid $1,295 to get going in this program you need to cancel out of it ASAP. I’d also like to see the agreement they asked you to sign and you can upload it to me here.

I’ll be happy to tackle the best way forward for you but let’s get you out of that deal first.

You can update me in the comments section below.

Big Hug!

Am I Making the Right Choice to Go With Nationwide Financial Center and Their Credit Counseling Program?   Sally
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Lyndon Effinger

    I received the EXACT same packet from a company called Mission Financial Services….exactly ! I questioned the agent, Mike, about these charges , which I separated and googled. The entire Financial Success Kit can be bought in pieces for a total of $33.64. How dare they charge a monthly charge ? I believe that Mission Financial is the same company as the one mentioned here. This guy has been like glue. I have had a real struggle to try to sever our association with him. Thanks for this posting !!

  • Tristan

    Here’s the link to the above article I mentioned:
    http://getoutofdebt.org/24629/

  • Tristan

    I say DON’T DO IT!  I’ve also spent hours on the phone with two debt relief companies promising the same thing.  In researching these companies, one person had success while two were in worse shape due to the company’s shady way of doing business.  I say research bankruptcy and detach yourself from your emotional opinion of yourself being in debt.  I read an article THE HONEST & UNVARNISHED TRUTH ABOUT HOW TO GET OUT OF DEBT on this very forum (link below).  It has helped me greatly and I Feel so much better about my similar situation.

  • Tristan

    I say DON’T DO IT!  I’ve also spent hours on the phone with two debt relief companies promising the same thing.  In researching these companies, one person had success while two were in worse shape due to the company’s shady way of doing business.  I say research bankruptcy and detach yourself from your emotional opinion of yourself being in debt.  I read an article THE HONEST & UNVARNISHED TRUTH ABOUT HOW TO GET OUT OF DEBT on this very forum (link below).  It has helped me greatly and I Feel so much better about my similar situation.
     

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