Do these companies really help
By Jennifer Kennedy on
A few years back I found myself in quite a lot of debt, it was the usual sort credit card, overdraft, loan companies etc, anyway everything started to get on top of me! I fell behind with the payments so therefore interest was added, letters were coming through the door demanding payments but instead of trying to sort the problem I just through the letters into the draw and tried to forget about them, obviously this didn't work.
Eventually I came across a company called Debt Line, after talking to them on the phone I started to see light at the end of the tunnel, I came to an arrangement with them, I paid them 100 per month and they would distribute this between my creditors, I was aware that there was a fee for this but I wasn't sure how much it was at the point, Debt Line advised me not to make any payments to my creditors and to ignore any letters they sent, so I did!!
Weeks passed and I continued to get the usual letters and I continued ignoring them, eventually I recieved a leeter from one of my creditors saying that they accept my payment plan of 12 per month, two more letters followed over the folowing days. Looking at the letters I realised just how much Debt Lines fees were, 64 to be exact, I remember thinking that the 64 could be used to help pay my debt, I could do what Debt Line was doing myself. So I called them and told them I no longer needed their services.
When I canceled my payment plan, needless to say Debt Line were not at all happy but I didn't care, in my opinion I was about to waste 64, paying for something I could do quite well myself. Once the plan was canceled I continued paying my debts off on a weekly basis. Thankfully I an nearly debt free, I just wish I had done that in the beginning.
Advice
I totally understand that it is easy to get into debt, but dont bury your head in the sand the problem will not disappear, If you are dealing with a debt consolidation company check how much they are charging for fees before you agree to anything.
Thanks for reading
Excellent advise! Ironically, mu hubby and I are looing into a credit repair company right now as we are trying to find a mortgage, but with bad credit in the US its impossible! This is a lesson well heeded and at the PERFECT time for me! Thank you SO much for sharing this :-)
I am almost afraid of credit cards.
From what I hear from the ones in the US it seems like a lot of them will probably cause you to go into bankruptcy and if you run into trouble they tend to vanish
I could not agree more with you. I had gone this route many years ago and did the same thing. I called each creditor and worked it out on my own. Plus saved that monthly fee.