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Are There Any Real Credit Counselors or Debt Counselors Out There? – Sherry

“Dear Steve,

Are there any REAL debt/credit counselors out there? What other option is there other than bankruptcy? We are now 30 days on 1 vehicle and late on this months house payment.

Sherry”

Dear Sherry,

In your situation I’m not sure how a credit counseling group would be much help. If you are behind on your secured assets then you need to get caught up on them as soon as possible or contact the car lender and mortgage company and see if some arrangements can be made.

The only debt relief solution that will help you to overcome your mix of secured and unsecured debt is going to be bankruptcy, which would prevent the loss of the car and home and allow you to get caught up, special arrangements with the lenders directly, or possibly a debt consolidation loan to get caught up. The debt consolidation loan is the worst choice if your situation is because of limited cash flow rather than caused by a one time event.

It would seem prudent to click here to find a local bankruptcy attorney and talk to them about what your options are to protect the home and vehicle.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

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About the author

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.

2 Comments

  • Hi,

    About almost 4 years ago, I was about 28,000 in debt! March 2011 I will have finished paying everything off! This is a debt Management program that do not over charge, no hidden fees, they will call all creditors for you and explain the process. I am VERY happy with their program! I never once received a harassing phone call from my creditors! If i received a letter from my creditors, I would just fax it right over to my DMP company and they will deal with it. Here is their website http://www.cccsoc.org. Good luck!

  • Sherry,

    I have a couple ideas.

    Contact the lender on the auto loan right away. Let them know you’ve been having trouble lately and ask if they can defer the one missed payment and get you back to even ground. It can be very difficult to lower auto loan payments and a deferment may be the best they are willing to offer. Do it before you fall further behind.

    You will want to also contact the mortgage company right away. You should ask them about loan modification options. They may be able to not only defer your missed payment but possibly lower your mortgage payments. Most lenders will require that you owe at least one payment in order to be considered for modification, so at least you have that covered.

    If possible never let the mortgage payments get beyond one or two months behind. You will be getting dangerously close to the lender beginning active foreclosure, if you let a mortgage go further behind than that. Being in review for loan modification does not mean that you are exempt from making monthly mortgage payments, and you should be prepared to do so throughout the review process, even if it takes 6 months.

    For the lender to determine your eligibility for loan modification be prepared to supply them with paystubs, bank statements, tax returns, and any other pertinent documentation they may require. It will also be be very important that you supply them with this information promptly and stay in regular contact with them throughout the review.

    It may amount to a lot of work, but the savings could be well worth it.

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