My hubby currently has two major cc debts of around $8500. I do help him pay off his debts however, we are considering to consolidate his debts because the interest rates are around 27% and a huge percentage of our earnings go to bill payments. We are based in NY.
I was wondering if you could recommend a list of reliable and credible credit counseling organizations (whether online, by phone or in person) where we can discuss our options? Thank you in advance for your help 🙂
Interesting question and tougher than I initially thought.
My big complaint with credit counseling today is that the terms offered through credit counseling are dictated by the creditor. Credit counseling does not negotiate anything, they look down the list to see what your creditor offers.
So because of that, the monthly payment in a credit counseling program is going to be nearly identical for any credit counseling or debt management provider.
The best advice is that you contact three debt management and/or credit counseling groups and compare what each is offering you. Find one that provides you with the highest level of responsiveness and customer service.
You need to know that just because a creditor offers to reduce your interest rate now, does not mean they will continue to. Any credit counseling program is not binding on the creditors and they have every right to change the interest rate along the way, especially if the card is sold to another provider.
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