 |
|
|
Ask WomensFinance? : Answer |
Q: Are there organizations that can
help me with my debt problems?
A: Yes. There are many
organizations out there that will assist you with your debt problems. Let's take a look at
two of them:
Debtors Anonymous
Debtors Anonymous (DA) is a non-profit organization that helps people get control of their
spending habits and debt. Their support program is similar to the 12-step program of
Alcoholics Anonymous. Debtors Anonymous is listed in most telephone directories and can be
reached at the following address:
Debtors Anonymous
General Service Office
PO Box 920888
Needham, MA 02492-0009
(781) 453-2743
(781) 453-2745 (FAX)
National Foundation for Consumer Credit
If you feel you can't
negotiate with creditors on your own or your debts are just getting out of control, there
are many credit counseling services out there that can help you. One of the best known is
the National Foundation for Consumer Credit (NFCC). The NFCC is a network comprised
of 1450 non-profit community organizations (most use the name Consumer Credit Counseling
Services or CCCS) spread across the United States.
Certified counselors at CCCS will examine your financial situation, help you develop a
spending plan, or just answer general questions about money management. If you have severe
debt and your situation warrants, you may be able to enroll in their Debt Management Plan
(DMP). In this plan, you agree to deposit funds into a CCCS account each month. CCCS
distributes payments to creditors according to the proportion of debt owed to
each. They also contact your creditors to ask for lower interest rates, lower monthly
payments, and waived finance charges. It will take approximately 48 months to repay debts
through the DMP and when you have completed your payments, CCCS will help you re-establish
credit.
A few things you should know when dealing with CCCS:
- CCCS is funded with voluntary contributions from creditors.
- Up to 15% of your DMP
payments to creditors will come back as voluntary contributions to CCCS. Your accounts
with creditors, however, will always show 100% payment.
- CCCS and your creditors will
discuss many options but they'll never mention bankruptcy as one of them.
- If you enroll in the Debt
Repayment Plan from CCCS, make sure you follow through. Missed payments or reluctancy to
keep up with the plan may show up on your credit report as an uncollected debt. Not good.
If your debts are too high
to make the CCCS plan work or you've exhausted all other options, then you may want to
explore bankruptcy as a last resort.
To contact the NFCC:
National Foundation for Consumer Credit
8611 Second Avenue (Suite 100)
Silver Spring, MD 20910
1-800-388-2227 (24hr automated listings)
Or look under "Credit and Debt Counseling" in the business pages of your local
telephone directory. The NFCC also has a member office locator at it's web site that will allow
you to find the NFCC member organization nearest you.
Note:
Stay clear of credit repair agencies, clinics, or debt doctors who claim they can fix your
bad credit rating. For a large fee, they promise to remove negative credit information or
create a new credit history for you. Legally, this is not possible. They are a scam, so
move on. The only way to re-establish your credit are time and an improved credit record.
There are no quick fixes.
<<
BACK
|
|
|
