Hey Fools,Is it just me, or has the marketing of these so-called "non-profit" associations than handle Consumer debt (like Ameridebt, Debtfreedom, etc...) has gone up the roof??? Am I seeing visions? In TV and online, ads for these organizations are everywhere! Not that I mind more help for people who need to get their debt under control. However, I happen to know a good bunch of these "non-profits" are well funded by banks and credit card issuers (sometimes by regulation, like the CCCS on each state, but more often by choice of banks and credit issuers) I guess they want to avoid BKs on their customer base, so they offer these services of "last resort" to people.Most operate ONLY for unsecured debt, so they are not really alternatives to BK unless all your debt is unsecured. Also, I saw an ad of one of these organizations offering "cash back" to those paying on time. The way it works is that you front the money yourself, they hold it (keeping the interest) and then at the end of some period of time, they give it back to you. The kicker? well, if you enroll and then drop later, they get to keep the $$$...what a helpful freakin' service!!! Has anyone here use them in their way to BK, or perhaps instead of BK? I know CCCS is a truly non-profit, but what about everyone else offering these services? So am I seeing visions or has the marketing of these organizations increased a lot lately? Defaults are more likely to happen in this shrinking economy.... Is this why banks are giving money to them? why would a non-profit have so much $$$ for advertising?I smell a rat.CiscokidnmemphisPS: Happy Holidays to all!!!
As far as I can tell, non-profit doesn't mean that their executives aren't getting rich taking any profits into bonus' etc... $10K profit could = 2 - 5K bonus' for 2 executives and it would be compensation which isn't profit and reduces profit.Just a thought,Joseph
cisco Before we filed 7 we were in cccs. I can tell u that we had to pay 12 dollars to them every month for them to basically manage our debtsthey are suppose to be nonprofit right?? hmmm
I also have a strong feeling that these debt management people are actually in cohoots with creditors. it wouldnt surprise me that they scratch each others back. the thought of a debtor being able to pay their debts thru one of these so called non profit groups at a lowerinterest rate,lower monthly payment is in my opinion how they reel you in. In turn the creditor accepts the terms of there offer and im sure they both benefit in some way. Also we found out that when these creditors report to the crb it is viewed as negative info.account being managed by credit counseling service. we were actually denied a loan before we filed 7. the reason was "we dont loan money to people in debt management programs" in fact they further said we would need to be out of the program at least 12 months before they would "consider it" hmmm??
Before we filed 7 we were in cccs.jasbn7,so the help that CCCS provided to you was not enough to keep you from going Ch. 7? What did they do right/wrong from your point of view? Just wondering. Before I considered my Ch 7 I considered one of those debt management services but the fact that I could never get my rep over the phone just annoyed me so much I decided not to do business with them.Cisco
cisco Actually the only thing that i felt CCCS was helpful with was the fact they got the creditors to lower the int rate and get them to accept a lower monthly payment.We were making payments to them for 2 years before we filed 7. CCCS was not the reason we filed 7, we payed them 281 dollars a month including the 12 dollar fee to basically keep our credit standing at par and it was working fine until late last year. here are the details In aug of 2000 we moved out of a house that we were in for 14 years and were never late on the mortgage. We needed a larger home(kids) so we applied for a loan,and were able to get it. We left before the house was even on the market. We listed the house for sale and the net would of been enough to pay off my remaining debt. so we took the risk of making 2 mortgage payments hoping that it would not take long to sell the house. the real estate agent told us it should turn in about 60 days based on similar properties that have sold. Well as fate would have it, 4 months later and no sale, we could not keep up with 2 house payments. so we stopped paying the first note.at the same time my wife had a vehicle that had 110000 miles on it and she wanted to trade it in but could not because it was upside down 8000.So we did the vol repo and we knew that the deficiency would be 8000She was able to get a brand new vehicle in dec 2000 as credit was still ok. we knew we needed to do this now. sure enough, after they sold it in march of 2001,the def was 8000. By april 2001 the house was 4 months behind and scheduled to foreclose on may 1 2001. we now were up against a foreclosure and a def judgement of 8k plus 7800 unsecured debt. we got letters from bk attorneys(from foreclosure listing service) and we talked to one and they qualified us to go 7. We didnt see any alternative so we filed the petition in june 2001 and recieved discharge in sept 2001. Recapping,yes CCCS did help and other people i know personally have used them and it helped them. CCCS did not lead us to 7. we did that through our "mistakes". I dont wish this on anyone it has been a very trying and stressful year. Jasbn7
Cisco,In 1995, I tried a CCCS - unfortunately I only lasted with them for about a year, probably due to the fact that they wanted $1000 a month which was (at the time) 75% of my take-home pay. They did reduce my interest rates, but other than that they were pretty useless.It appears that these days, creditors look at organizations like CCCS in the same light as Chapter 7, so what's the incentive not to file BK?The government needs to step in and prohibit creditors from looking at CCCS negatively. If anything, it should be a positive, showing that someone was willing to make the sacrifices to pay back their debts. But instead, I am sure that they will just keep passing laws making it more and more difficult for the average person to file BK.Of course, how can we expect the government to understand debt? You'd figure after being 3 billion in the hole they would start to figure it all out....
Government in 3 billion in debt?Try over 5 Trillion - $5,881,570,635,636.22 on 12/18/01.It won't be long until all Americans will be Chapter 7.
hey friend i agree with your post.try telling that on the managing your finances/consumer credit board. Some brutal people there
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