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  1. #1

    Default Whether to Continue Working With a Debt Management Company

    My wife and I are currently enrolled in a debt management program and after reading that a debt management program may be just as bad as bankruptcy I am a little concerned.

    The debt management company charges me 49.00 per month to handle my debt. After reading numerous posts it seems that i can do what they do on my own by negotiating with the creditors on my own. Would that be a better option or should I just stick with the debt management company?

    My original debt counseling company was Family Credit Counseling which as of October 14, 2008 changed to American Debt Counseling. As anyone done business with either company?

    Can I legally cancel my contract with American Debt Counseling and contact my creditors directly? If so do I do it by phone or do I do it via mail? Will creditors frown upon a change like this? What do you recommend I do and what can i do legally?

  2. #2
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
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    1,404

    Default Re: Whether to Continue Working With a Debt Management Company

    Quote Quoting jbjints
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    My wife and I are currently enrolled in a debt management program and after reading that a debt management program may be just as bad as bankruptcy I am a little concerned.

    The debt management company charges me 49.00 per month to handle my debt. After reading numerous posts it seems that i can do what they do on my own by negotiating with the creditors on my own. Would that be a better option or should I just stick with the debt management company?

    My original debt counseling company was Family Credit Counseling which as of October 14, 2008 changed to American Debt Counseling. As anyone done business with either company?

    Can I legally cancel my contract with American Debt Counseling and contact my creditors directly? If so do I do it by phone or do I do it via mail? Will creditors frown upon a change like this? What do you recommend I do and what can i do legally?


    You need to pull your credit reports. If the debts are being reported as SETTLED, or CREDIT COUNSEL, well then yes. Your scores are about the same as a bankruptcy.

    If you are unable to make your payments then a bankruptcy may be a better choice. You should contact a bankruptcy attorney. This site can put you in touch with one in your area.

    Although these types of NEGATIVE credit report issues will fall off of your credit report after 7 years, the 10 year bankruptcy report may actually fall off faster (you may have to stay on the pay back program for more then 3 years)

  3. #3

    Default Re: Whether to Continue Working With a Debt Management Company

    Thank you for replying. I just checked my credit report and it states "Paid or Paying as agreed", is that similar to bankruptcy? I feel like my original debt management company (Family Credit Counseling) did a bad job with my account, the new company (American Debt Counseling Inc.) on the other hand has a website where I can access my account 24/7 and I also deal with one person who is my case manager.

    Should I just continue doing what I've been doing the past year and A half? As far as claiming bankruptcy......I have been able to make the payments but I am struggling to do so. I just do not want to be a dead beat. I made the mistake of getting myself into debt so I should be responsible for the debt. What I am more concerned with is whether or not I should continue with the debt management company or deal directly with my creditors which would save me 50 dollars per month.

  4. #4
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Whether to Continue Working With a Debt Management Company

    Quote Quoting jbjints
    View Post
    Thank you for replying. I just checked my credit report and it states "Paid or Paying as agreed", is that similar to bankruptcy? I feel like my original debt management company (Family Credit Counseling) did a bad job with my account, the new company (American Debt Counseling Inc.) on the other hand has a website where I can access my account 24/7 and I also deal with one person who is my case manager.

    Should I just continue doing what I've been doing the past year and A half? As far as claiming bankruptcy......I have been able to make the payments but I am struggling to do so. I just do not want to be a dead beat. I made the mistake of getting myself into debt so I should be responsible for the debt. What I am more concerned with is whether or not I should continue with the debt management company or deal directly with my creditors which would save me 50 dollars per month.
    Actually I am very surprised that your accounts are showing PAID OR PAYING AS AGREED. That is the BEST rating you can possibly get on your credit report. There is NO BETTER rating. It is NOTING like a bankruptcy, it is the complete opposite.

    So do I think the NON PROFIT agency is worth the $50 a month?? you betcha.

    You are being reported the same as any PERFECT paying customer would be.

    In this economy we are all struggling to get by. I really would not want to see you get rid of your debt company only to possibly not do as good of a job as they are.

    I must say I am very very impressed in the way they are handling this for you. If you cant afford it down the line then you can consider stopping the agency, however, if you can continue using them, I sure would.

  5. #5

    Default Re: Whether to Continue Working With a Debt Management Company

    Thank you very much for replying. I am going to print out the actual reports today so i will see if I see anything that may look bad and post it here. Thank you again.

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