Debt Repayment Program Question

19 years ago

About 15 years ago I was in debt up to my eyeballs due to STUPID behavior on my part, I must confess. I went to Consumer Credit Counseling for assistance. They were great. Helped me work out a budget, contacted my creditors and got my interest rate reduced etc. I paid everyone off (I felt so good) and rebuilt my credit. All is well with me. However, a co=worker has confided in me her similar debt problems. I shared what I had done, and recommended CCC to her. Before she called CCC she heard an advertisement for Debt Repayment of America (I think that is what it is called) who supposedly guarantees they can get your credit card bills reduced by 50% or more due to secret credit card programs they know about that the credit card companies don't want you to know about. It sounds fishy to me, and just the fact that your aren't paying off your bills in full seems to me would tarnish your credit even further. However, I know nothing about this organization and my only experience has been with CCC. So is anyone familiar with this Debt Repayment Program of America? Any good or bad information about them? I would like to steer my co-workers in the right direction, and right now she is seeing the debt repayment company as a quicker fix than CCC. She needs an organization to arrange her repayments for her, she is not the type of person to contact the credit card companies themselves and try to work out a plan (I suggested that also) so any information would be appreciated.

Thanks.

Abbey

Sort by:Oldest

Comments (4)

Chemocurl zn5b/6a Indiana
19 years ago
She sounds like she should have someone who knows a bit about finances, debt, and one's financial record, to go with her.

She has made some mistakes in the past, and may not know if what she is getting into is a good deal or not.
myfask
19 years ago
Abbey
First congrats on getting your credit paid off and in control.
As for your friend
she needs to RUN not walk away from these people. there is no "secret credit card program"
This is one of the dreaded "settlement" companies I have spoken of in a previous post.
this is how they work:
they tell you to stop paying your credit card bills and send them a certian amount of money each month. When your "account" with these folks hits a certian ammount(less the money they have taken for their "fees") they will then go to the creditors and offer them 50% of the balance to settle. If you friend is not late the chances of this happening is very very slim.
What they don't tell you is credit card companies look upon these companies as a industry "joke"
also what they don't mention is not paying your bills will result in late fees and negitive reports on her credit report.
They also can't promise that the credit card companies won't "sue" her. When I worked for a major credit card company and we would receive these "settlement companies" letters we immeditally would send the account to the litigation dept for review. If there were any assets like a home or accounts that were being paid we would proceed to get a judgement against the debtor.
Another thing they don't mention is any settlement over $599, is reported to the IRS so for example:
Balance $10,000 settlement $5000. the $5000 that wasn't paid is reported to the IRS and your friend would have to report this as income there by raising her taxes.
finally should your friend decide that the collection calls and possible litigation is not worth it, the damage she has done to her credit report will remain for 7 to 10 years allot longer than going the CCC route.
there are no "magic" quick fixes to getting out of debt other than a good repayment plan.
You are the best example how well ccc can work that is where she should be going
Karla

p.s. sorry for any typos but it is 5:30 in the morning lol
Related Discussions
Big cut in forestry programs
Q
Comments (11)
I wish I could tell you I was surprised. Regardless of what peopleÂs opinion of the current people in office is, their program changes have been more pro-business and development, like selling federal lands, getting rid (or trying to ) of roadless laws, and other such stuff and less towards environmental issues than ever before. I could list a long list of grievances with the feds on this issue and even more so on grassland issues. No program is perfect, but in recent years I feel we have been going backwards in several ways. I will contact my representatives, for whatever good it does.
...See More
Education programs....I need to vent! (kinda long...)
Q
Comments (14)
I've taken some classes at the local Community College, since they transfer to my current 4 year school and are much cheaper and closer to home. While the classes themselves have been wonderful - great professors, good texts, lots of support, great schedule, dealing with the administrative process is a NIGHTMARE. Seriously, no one in administration ever picks up a phone or returns a phone call or email. Ever. Even when I go there in person, unless you get the rare staff member who knows what they're doing, there's a good chance something will be screwed up. I just sent in a letter to try and get transcripts sent somewhere and I'm sending all the positive thoughts I can that this will go smoothly. I may double order, just in case. Even the information desk staff is rude and grumpy. At the 4 year school in which I'm also enrolled, staff is a dream. Very helpful, kind and completely competent. I've also taken online courses, one from a school in Utah - Weber State University. It was a biochem class with lab and it was outstanding. Great class, and while the registration process took a little navigating, it ended up fine. Thankfully, I'm almost done with this process. So, yes, I feel your pain. In a big, big way. AM
...See More
My debt problems
Q
Comments (57)
Boy I know about the emotional burden. For years, I hid our mounting debt from my husband. I'd wake up at night worrying about credit cards. Yet I continued using them. At first it was only for Christmas gifts and vacations. Then I started charging gasoline and groceries. I was making payments all along, but falling deeper and deeper in debt. I consulted a lawyer but decided against his recommendation to file bankruptcy.The hardest part was being honest and admitting everything to myself, my husband, and the banks and credit card companies. I had to admit I was deeply in debt, badly over my head, and needed to stop spending and charging. I have been faithfully paying off all my credit cards for nearly three years and it will still take several more months to get rid of the last couple. My credit cards will be completely paid off in 2014, also a home equity loan and car loan. I'll post when all my debts are gone. By the way, I hate looking at this whole post. It just reminds me of how stupid I was about money in the past, and it reminds me not to share sensitive personal information on line. This post was edited by jannie on Sun, Feb 16, 14 at 12:06
...See More
Emergency fund or debt payment?
Q
Comments (25)
greg_h calls me paranoid when I say that a credit-card company might find out that you lost your job. I didn't mean to say that the employer would contact the credit-card company directly. Rather, I have no trouble imagining a situation in which an employer arranges with a credit bureau to do credit checks in bulk on prospective employees, and gets a discount in exchange for telling the credit bureau whenever it hires an employee or an employee leaves. The last time I checked my credit report, it included the names of my past employers. I certainly didn't give them that information; but they got it from somewhere. Is it really paranoid to believe that a credit-card company, which surely checks their customers' credit reports from time to time, would have access to that information?
...See More
abbey_cny
Original Author
19 years ago
Thank you Chemocurl and Karla for your replies. Chemocurl- Someone will be going with her, most likely me as I don't think any of her family members know about her debt. She just happened to be bemoaning her credit card payments one day when there were just two of us in the office, and I decided to share my experience in the hopes of offering encouragement. Then she had to hear that darn commercial!
Karla, Thanks so much for that explanation. I knew what that advertisement said couldn't be a good program, but I had no idea how they would manage to reduce debt. I will show her your explanation and encourage her to make that call to CCC.
They were a godsend to me and I know they can be for her. The last thing she needs is to ge suckered in by some less than reputable company.

Abbey
myfask
19 years ago
abbey
your welcome, I am so glad you asked and how lucky you friend is to have you make sure she didn't get sucked in m their advertising. These companies are one of my bigest pet peeves in the credit industry. Their "song and dance" has "ruined" more folks credit than you could imagine. Though it could be fun to go with her to "meet" with them and you could asked them about the things I told you. Could be fun to see them tap-dance around .
If you friend needs more info tell her to feel free to send me an email
Karla

Debt Repayment Program Question

Comments (4)

Chemocurl zn5b/6a Indiana

myfask

Related Discussions

abbey_cny
Original Author

myfask

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

Debt Repayment Program Question

Comments (4)

Chemocurl zn5b/6a Indiana

myfask

Related Discussions

abbey_cnyOriginal Author

myfask

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

abbey_cny
Original Author