With the new bankruptcy law going into effect, I think there will be some serious credit counseling needed by quite a few people. I know it's a personal thing, but has anyone heard of a credit counseling or credit consolidation businesses that have actually worked or do they usually try to get people into a loan? I wonder if they charge high fees to help people out of debt, seems counter productive if they do! Also, I wonder if this credit counseling business reports to the credit agency, I have heard that they do and that might give another red flag or ding on a credit report.

I work with people all of the time on credit issues but haven't heard first hand about these companies and am curious if anyone has heard of a successful credit repair? Credit is so crucial in today's credit happy world - a low FICO score can make or break someone.

I think high school should have mandatory classes on teaching kids about using credit wisely.

I wish that kids would get training on real world issues like paying cash and saving money, never making late payments etc, not only from parents but over and over in high school credit counseling classes -before they actually get into a bind with credit.

My kids see me whip out the ATM constantly - I have tried repeatedly to teach them that I'm not using a credit card - that the money is coming out of the bank account directly and I don't have to pay interest ( a bad, bad word) ... I hope it sticks in their minds!

With the new bankruptcy law going into effect, I think there will be some serious credit counseling needed by quite a few people. I know it's a personal thing, but has anyone heard of a credit counseling or credit consolidation businesses that have actually worked or do they usually try to get people into a loan? I wonder if they charge high fees to help people out of debt, seems counter productive if they do! Also, I wonder if this credit counseling business reports to the credit agency, I have heard that they do and that might give another red flag or ding on a credit report.

I work with people all of the time on credit issues but haven't heard first hand about these companies and am curious if anyone has heard of a successful credit repair? Credit is so crucial in today's credit happy world - a low FICO score can make or break someone.

I think high school should have mandatory classes on teaching kids about using credit wisely.

I wish that kids would get training on real world issues like paying cash and saving money, never making late payments etc, not only from parents but over and over in high school credit counseling classes -before they actually get into a bind with credit.

My kids see me whip out the ATM constantly - I have tried repeatedly to teach them that I'm not using a credit card - that the money is coming out of the bank account directly and I don't have to pay interest ( a bad, bad word) ... I hope it sticks in their minds!

Think about the reason most people get to the point they consider bankruptcy. They buy too much and are not able to pay it back. Lack of money management. So, since that tanks their credit rating, what happens when they go for a debt consolodation loan? High interest rates. The rate is based on risk. The higher the risk, the higher the interst rate. These consoloation places love bad debt... They make more money or can take the collaterial and invest it.

I like the new bankruptcy laws because it mandates credit counciling and it is difficult to file. There are too many people who charge hundreds of thousands of dollars and go bankrupt because they know they can easily. This is abuse. In fact, I think it should be so difficult to file bankruptcy you would have to prove you need it through no fault of your own. Such as a former spouce walking out on his or her debts or major medical which is not anticipated. Then, it must be proven to be unavoidable otherwise, no go.

There are many subjects that should be required in school. Etiquite, manners, and others... And yes. Money management is one of them. We use to have one... It was called economics. However, the parents should do those things... But will not.

Karrie-

Consumer Credit Counseling Services is OKC based and very reputable. They have been in OKC for a long time....They're the only ones I've continually heard about in the news, etc., not just the fly by the seat of your pants "We'll fix your credit" companies. I have several friends who went to work for them out of college and have no complaints of "shady" practices./

Have you ever had any serious money problems? I am talking about the type of money problems that make you lose sleep at night. You worry about how your going to pay the rent and how your going to feed yourself and your kids.

The typical bankruptcy filer is not who you think they are. They don't live in a posh house in Edmond that is full of credit card charged items. I have been down that road I had no choice but, to file. The day I had my hearing I saw nothing but, people like me around me. Working class people that just needed a new start.


Sure its easy to look down on those of us who had to file but, until you have been there you really can't criticize us.

I know I did learn one thing from my experience, I will only have one credit card from this day forward. It will stay at a zero balance and used for extreme emergencies only.

The credit card companies think they won with this new legislation. This is going to do nothing more than make people get rid of their credit cards. In the end more people are going to take the advice of Dave Ramsey. Pay off your debts keep your money and do not finance anything other than a home. Pay cash for everything and it you have to use plastic use your debit card

Okla75, I wasn't trying to imply that bankruptcy was bad or that people who have to file are not responsible. I personally know many people who had unforseen events happen and they had to file to survive. I know how hard it can be and sometimes all it takes is one thing to happen to set off a domino effect - job loss, divorce, anything... I know that this is usually the last resort and it isn't all by people who overspend.


Most people are only one paycheck away from not being able to pay their bills - that's why it is so important to save, save and save your money! Even if you take $25.00 a week and put it away in a mutual fund or savings account, it will give you peace of mind that when the inevitable happens, you will have a cushion to fall back on.

My husband lost his job a few months back. I know exactly how you feel about losing sleep and worrying about money. Thank goodness we had some in reserves... we always have tried to save for a rainy day and it was pouring!

I was just saying that people won't be able to file so easily as before so they will need to consolidate their credit or get credit counseling instead of filing bankruptcy. Okla75 - I hope I didn't offend you - I wasn't trying to!

Apparently, some people on this board have not been clued in to what credit card companies are doing these days. Lucky them for never having to use their credit card to get by.

There are numerous reports on all the questionable new practices of credit card companies - jacking your interest rate if your payment hits one day late, jacking your interest rate if your payment to ANOTHER credit card company is late, outrageous late payment fees, changing the rates whenever they feel like it. Never mind the fact that they've shortened interest cycles to make it a little more difficult for someone to get their chrages paid off in the allotted time.

People who have never felt the pinch of losing an income or a job and having to support themselves with a credit card for a short time, really have no room to judge anything. Fortunately, I've been lucky enough to be able to make my payments, but it's taken a VERY long time to recover from my post-divorce debts. It has nothing to do with "living high on the hog"...it has to do with having somewhere to live and something to eat.

Apparently, short-sighted ignorance is bliss. (And no, Karried, this is not directed at you in any way.)

Okla75, I wasn't trying to imply that bankruptcy was bad or that people who have to file are not responsible. I personally know many people who had unforseen events happen and they had to file to survive. I know how hard it can be and sometimes all it takes is one thing to happen to set off a domino effect - job loss, divorce, anything... I know that this is usually the last resort and it isn't all by people who overspend.


Most people are only one paycheck away from not being able to pay their bills - that's why it is so important to save, save and save your money! Even if you take $25.00 a week and put it away in a mutual fund or savings account, it will give you peace of mind that when the inevitable happens, you will have a cushion to fall back on.

My husband lost his job a few months back. I know exactly how you feel about losing sleep and worrying about money. Thank goodness we had some in reserves... we always have tried to save for a rainy day and it was pouring!

I was just saying that people won't be able to file so easily as before so they will need to consolidate their credit or get credit counseling instead of filing bankruptcy. Okla75 - I hope I didn't offend you - I wasn't trying to!


You did not offend me. In fact my post was directed towards Mr. Anderson's comments.

I forgot to add the second part because it would have answered your question.

I did look at credit management game as an option before I filed for bankrupcty.

Basically, they play middleman between you and your creditors. You pay them a lump sum each month and they pay your creditors. The good news is some credit card companies will cut your intrest rate if you use credit management. The bad news is its a temporary solution and it will not work for people in dire straits.

Karrie-

Consumer Credit Counseling Services is OKC based and very reputable. They have been in OKC for a long time....They're the only ones I've continually heard about in the news, etc., not just the fly by the seat of your pants "We'll fix your credit" companies. I have several friends who went to work for them out of college and have no complaints of "shady" practices./


I would not send my worst enemy to CCCS. When I talked to them they suggested I borrow money from family members, move in with someone and get a second job. It was like sitting through a parental lecture. It almost sounded like some of the same script I heard from bill collectors.

I would not be surprised if CCCS is not backed by the credit card companies.

Lucky for me I learned my lessons and I am back on my feet now saving money.

My goal now is to try not finance a dime (provided my truck does not decide to go to chevrolet heaven) and save as much money as possible.

I do want to buy a home some day and being in debt does not help when your looking at buying a home.

I think CCCS tries to get you by without having to go into account mediation...which is sometimes looked upon more unfoavorably than bankruptcy. Obviously none of these solutions worked for you...for others they may avert disaster.