UCB Parents Recommendations
Debt Management Programs
Advice and recommendations from the UCB Parents mailing list.
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Financial & Legal Recommendations
January 2003
Has anyone ever tried Consumer Credit Counseling's Debt
Management Program? I have two large balances that I want to
consolidate. Any comments helpful. Thanks.
cd
I don't think it's ever a good idea unless you're really in
financial straits, since they usually cost more money in the long
run. Remember that most debt consolidation plans offer a
''lower monthly payment''--at a higher rate! So the longer you
borrow money, the more you will have to repay. And if you
transfer your balances to a debt consolidation program, it may be
tempting to spend more since you'll be paying less on the bill
each month!
The best debt management program is 1) to take control of your
finances 2) transfer all your balances to the lowest possible
rate, and 3) pay them off ASAP. Even if your debts will take
years to pay off, pay them off at the lowest rate so that more of
you money will go to the balance, rather than to some bank or
credit company!
anon.
I have been with CCC of the East Bay since 1998. They have been
instrumental in re-negotiating interest rates with my various
creditors. I pay a monthly amount which CCC distributes to the
creditors. When you sign-up, you can no longer acquire another
credit card or other kind of debt instrument until your entire
debt is paid-off. Not having any kind of credit card for
emergencies is challenging at times, but at least you do not
accumulate any more debt. It will be another couple of years
until I am completely debt-free, but I am well on my way. I
would highly recommend it to anyone.
almost debt-free
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