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CC Banks changing the Rules and the option of Consumer Credit Counseling ...

In the current economy, I'm finding it harder to make more than the minimum payments on my CC Debts.  I've seen my available balances lowered, and my interest rates elevated, and even the calculation of minimum payments has been changed on cards that I'm not using to make purchases, and only carrying a promotional balance, the terms of which have also been changed even though the original agreement was "Life of the Loan" at a fixed rate. 

Several friends and associates have suggested or encouraged me to consider Consumer Credit Counseling.  It's not that I'm spending anything on these cards either ... just that I'm getting eaten alive by the changes and the sheer magnitude of the overall debt (mid-five figures). 

What do you think?  CCC Services seem to be a bad idea when you look at the effect they have on Credit Scores, and how lenders see you.  But they also manage to seem like a good idea when they claim to cut interest rates, and sometimes even the total amount that you owe by a significant percentage. 

I'd love to be able to break away from this debt without feeling like I'm shirking my responsibility ... is that what CCC Services are all about, or are they just a scam that will end up ruining me for any future credit needs? 

By the way ... among the hostile changes I've experienced, two lenders have pulled dirty tricks.  One lowered my overall limit even though I wasn't using the card for anything other than a fixed rate for the life of the debt, balance transfer.  That same lender then changed my calculation for minimum payment, then when I complained because it effectively doubled the minimum (thus putting the payment out of my reach) they told me my only option was to accept a higher interest rate (changing from 4.99% for the life of the balance, to 7.99%) for a limited time, and then revert to a "post-promotional" rate of approximately 25% when the limited time period ended.  The other lender quietly changed my interest rate, and calculated a finance charge that pushed my balance "overlimit" ... charged a fee (deepening the overlimit condition) and then closed the statement ... making my balance in the new billing cycle ALSO overlimit, and have charged that fee a second time ... all in the space of one overnight.  I complained and they told me that was their policy and wouldn't reverse either of these fees. 


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DebtNegotiationZone

Settle your unsecured debt for 40-60 cents on the dollar

 

CCCS programs are not what they used to be in terms of your credit scores.  They used to be a negative but aren't weighted like they used to be.  You can buy a house now while being in a credit counseling program.

CCCS Information

 
Posted 2009-05-21T20:20:05Z
DebtFreeDave was invited by Yedda to answer this question.

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Reliable answers to your credit questions.

Credit counseling no longer hurts your credit the way it used to. It will have an effect on your credit because you will be required to close your accounts, but it is not the same as bankruptcy. (As long as you go with a reputable agency.) In addition, credit counseling now offers some more flexible repayment options for those who cannot afford a traditional Debt Management Plan. I have written about these changes and you can read my article here: http://www.credit.com/news/experts/2009-04-28/credit-card-delinquencies-rise-card-issuers-offer-more-flexible-repayment-plans.html

Counseling may or may not offer you enough relief but you won't know until you talk with them.

 
Posted 2009-05-27T14:56:50Z
GerriDetweiler was invited by Yedda to answer this question.

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Debt collector calls from credit card companies, auto lenders, mortgage companies and the like can cause high anxiety and shame for anyone.  For those recently unemployed and not accustomed to these calls, it can be particularly stressful.  But there is a right way to handle it, so that you can deal with the situation and preserve your credit rating.  Here are some ideas on how to handle this situation:  http://ratenerd.com/how-to-handle-debt-collector-calls-1395
Posted 2009-06-20T13:12:43Z
RateNerd was invited by Yedda to answer this question.

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