Jude 2

I have a friend who just called wanting some suggestions on debt management.

She is getting over her head, and needs to try to consolidate and get some things paid off. Right now with a couple credit cards payments aren't really even making a dent, and she has more bills coming in than money to cover them.

I know there are alot of things she should have done differently, but many of us have been there, I'm glad to say that is behind me, but I've been there and know how difficult it is.

Does anyone have advice of who to go to for assistance? I don't know the details of her situation other than she is feeling she needs to do some counseling or consolidation to try to get out of the hole she's in, and asked me for suggestions.

Rose looked up a few sites through the BBB, and I'll list them below, any warnings against these or suggestions for better are greatly appreciated.

www.christiandebtconsolidation.org
www.christiandebtnegotiation.org
www.christiandebtconsolidators.net
www.christiandebtconsultants.com
www.christiandebtsolutions.net

As a student of FPU... Dave calls this debt CONsolidation.

All bow to the Almighty Dave! LOL!

Actually I had a friend who got into some BIG financial trouble. The Catholic Church helped her thru some program that really worked. Unfortunately, she went back a couple years later doing the same thing and ended up in the same trouble. I'm not endorsing the Catholic Church, but the program worked. I think it was thru the Catholic Service Leauge or something like that. They called her creditors and everything. They even got her payments lowered and finance rate knocked down on some cards.

Partners with Crown Financial Ministries & Clark Howard - out of Atlanta:

http://www.cccsatl.org/

Ilovebigcats wrote:As a student of FPU... Dave calls this debt CONsolidation.

I agree with Cats statement.

I can tell you from my experience as a mortgage banker (second job while in Florida), debt consolidation and credit counseling are huge scams. A debt consolidation loan is like trying to lose weight be eating more food, and credit counseling will affect the person's credit just the same as a bankruptcy. If you want some serious advice how to solve the problem, PM me.

Thanks- Sam Smith

consolidation doens't work, unless you have made the paradigm change on not using it (credit cards that needed consolidated) to begin with. otherwise, after consolidation, the existing cards will accumulate more debt and you will be laft in a state worse than the former. need to bind the strong man before entering the house.

RamboPreacher wrote:consolidation doens't work, unless you have made the paradigm change on not using it (credit cards that needed consolidated) to begin with. otherwise, after consolidation, the existing cards will accumulate more debt and you will be laft in a state worse than the former. need to bind the strong man before entering the house.

True dat.

pastorsam wrote:I can tell you from my experience as a mortgage banker (second job while in Florida), debt consolidation and credit counseling are huge scams. A debt consolidation loan is like trying to lose weight be eating more food, and credit counseling will affect the person's credit just the same as a bankruptcy. If you want some serious advice how to solve the problem, PM me.

Thanks- Sam Smith

I have to disagree with you here.

I went through credit counseling through Credit Guard of America ( http://www.creditguard.org ) and had no problems Financing 2 homes due to a move and refinacing at least twice to get better rates while in the program. I only had one Mortgage broker have any issues and we went straight to the bank when he balked.

It really depends on the program you use and how they run their program. Yes, they charged a fee to work with me, but having an advocate to work out the terms with the creditors without having to go into bankruptcy is a real benefit.

As to how much it hurt our credit...Let's just say I haven't had any issues getting credit at very good rates if needed and I have only been off the program for a year.

That being said, If I can't buy it with cash on hand and it isn't a "major" purchase like a house, it can "usually" wait until I do have cash. I do NOT want to get into that trap again.

I do agree about consolidation loans however. I tried that first and ended up in the same fix but with twice the debt and higher interest.

Ilovebigcats wrote:

RamboPreacher wrote:consolidation doens't work, unless you have made the paradigm change on not using it (credit cards that needed consolidated) to begin with. otherwise, after consolidation, the existing cards will accumulate more debt and you will be laft in a state worse than the former. need to bind the strong man before entering the house.

True dat.

yup. BTDT, and years of going through it has taught me a lesson I had no help in otherwise, and would wish on nobody. BTW - except for my house a car and normal monthly utilities, I am nearly debt free.

I know there are some not Dave fans on here but we were in the same boat it seems as this lady.
We read the Total Money Makeover and jumped right in. We called the credit card company ourselves and got lower interest rates on 3 of our credit cards lower. We threatened to leave and go with someone with a lower rate (it was just a threat since we may not could even get one) . Not all of them did but it didn't hurt us to try and like I said 3 of them were lowered. One was changed to 2.9% for a certain amount of time and then it went to 14.9% which is still better than 21.9%.
I said that to say that sometimes we can do the work these debt counselors do and not have to CONsolidate.
Also, there could be an accountability system with a fellow christian to make sure that the spending is in order without having to pay someone to do that.
If Daryl and I would have known back then what we know now...we'd be rich!
I'll be praying for her! I can truthfully say we've been there. And if not for the grace of God would still be there.
Terri

blessedmom, good advice.

I like Dave's stuff overall. I just don't think it's a fix all. Every situation is unique and what worked for me, may not work for the next guy.

The only thing I know that is oneway, is salvation....thru the blood of Jesus only. As for everything else, there's always more than oneway to skin a cat.

I had a friend that went through Consumer Credit (now Clearpoint Financial). Said it was the best thing they ever did. They typically have local branches where you can meet with a credit counselor face to face & don't have to do everything over the phone.

http://www.clearpointfinancialsolutions.org/

I think a lot of this depends on the severity of the situation. My friend was approved for a car loan a month out of the program. If the accounts aren't delinquent yet - it will most likely have less of an impact than if they are. The sooner they can get out of a delinquent state the better & if they can get set up before they go to a collection agency or are re-sold - way better.

Clearpoint takes all your info - helps you set yourself up on a budget - negotiates with creditors to try to get reduced interest rates - you watch the counselor cut up your cards - then send them your monthly payment & they disburse to each creditor for you. As you get one card/creditor paid off - you continue to send the same amount - but they take the extra & begin to apply that to another account until you have all your creditors paid.

I have extensive experience in all the above.

Don't do any of it.

While you may not (for what ever reason) agree with Dave Ramsey, Crown
Financial, and all the major financial people will tell you not to do that but rather to do a version of the debt snowball.

There are many of those kinds of programs out there....but what ever she does, tell her one who has "first hand " knowledge will say .....don't do it.

Just change your spending habits, get a second job or two if necessary and get on with life.

stevenson wrote:
As for everything else, there's always more than oneway to skin a cat.

Just another way to save; Make stew out of skin cat and save on gro. Say, didn't somebody on another thread have some kittens to start with?

Other then that, discipline, discipline, and more discipline.