Payday Loan Fairy

Hello, I am thinking of using Debt Reduction Services, (that is the actual company name) to reduce my credit card debt. Has anyone ever used them? Also, when you do use a non-profit agency to get your credit cards under control. How bad is it that you have to close your credit cards? Thank you very much.

Always check out a company through the Better Business Bureau: http://search.bbb.org/

For a nonprofit, use one listed with the NFCC or AICCCA: http://www.debtadvice.org/takethefirststep/locator.html
http://www.aiccca.org/

For self-help guidance, consult the debt articles on Bankrate.com. All the advice is free. Good luck!

2006-06-29 19:37:35 by dnelak

This commercial was filmed at our Anchorage, Alaska office and produced by NBC's (KTUU CH2) production team. The commercial discusses how Debt ...

I see a lot of advertisement from companies that claim they can reduce your credit card debt by 40% to 60%. What is the down side to using them? If they are successfull does it effect your credit rating? What do they charge? What must your situation be for them to be able to be successfull, Broke?

Debt-settlement companies promise that you can get out of your debts for pennies on the dollar. Typically, these outfits demand that you stop paying your creditors and instead send the money to them. After a few months, the debt-settlement company promises to open negotiations with your lenders and use the money you've sent to pay them.

The idea is that after a few months of not getting paid, your creditors will agree to a fraction of what they're owed.

Of course, your credit will be trashed at this point, you'll have paid fat fees to the debt-settlement company, and you may be facing lawsuits from your lenders. That's if you're lucky. If you're not, you'll risk all this, and the debt-settlement company will disappear with your money. If you need more details, read "Debt settlement: A costly escape."

Better alternatives include:

* Credit counselling. Legitimate credit counsellors have debt-management plans that reduce or eliminate the interest rates on your credit card debt.

* Bankruptcy. If you can't pay your debts, you may be better off getting a fresh start through bankruptcy. Your credit rating may recover more quickly, and you'll be able to keep the cash you would have otherwise sent to the debt-settlement company. Consult an experienced bankruptcy attorney who can evaluate your situation and discuss your options

2008-07-15 11:05:34 by Les R

If so, what were your results and would you recommend them. THey are approved by the government as I found them on their site as approved.

approved of by whom. we are working a plan on our own.
We listen to Dave Ramsey and are attending Financial Peace University.

2008-03-19 12:27:32 by dnelak

I need help deciding which debt reduction services to use.

A lot of these services really do more harm then good... personally if you are that far into debt check with bankruptcy lawyer-- the first evaluation is free. They have a repayment program and a straight bankruptcy program-- you don't lose all your property in straight bankruptcy and you certainly don't in chapter 13-- they will do a formula and determine the best course --rather its filing or not-- and can advise you even to a credit counseling program that you are asking about-- be informed of all your options-- those programs often cost you more money in the end then if you would have just filed and they certainly don't help your credit anymore then the next one- Often times you can do a debt settlement with your creditors but you have to be ready to make the phone calls- don't take no for the answer and keep track of who you have talked to along the way-- it's the same thing those crediting programs do-- but seriously- talk to a lawyer and see what the suggestion is-- and talk to more then one---

Some will tell you that filing is a bad, bad thing-- but it's not-- if you continue to pay your bills late and stay in huge debt it will stay on your credit record just as long as a bankruptcy - and probably longer because you can't get the debt paid off. No one wants to take any of these course of actions-- but really be informed because once you sign up for one of these programs you enter a contract with them and bankruptcy of any sort is not an option at that point.

2008-06-12 10:01:13 by ask.abbey

Has anyone heard of Debt Reduction Services, Inc.? Personal experiences would be appreciated! :) Thanks in advance!

They don't make your debts go away... they may consolidate pieces into a larger single debt and help you manage the payments. You still wind up repaying what you owe.

2007-02-03 13:25:12 by *ladybug*

I was talking w/a woman with a debt reduction company and she calculated my debts and pay offs and interest rates I'm paying now and states w/that company I could have my debts paid off in about half the time w/a much lower interest rate than what I'm paying now w/one monthly payment. My question is, are they bad on your credit? I mean would this be worth it or does it show up as terrible on your credit..? Any advice?

DO NOT DO IT. I did it before thinking that is was going to help me out, then when I got on my feet, it was so hard to get credit because they saw that I was in debt counseling. It took me forever to recover from that!! Go to your bank or a credit union and see if you can get a loan and pay off all of your debt that way, then you will only have the bank loan which usually has pretty good interest rates and you will be building credit at the same time.

2008-08-08 14:26:45 by ANTM