InCharge Debt Solutions Anyone???

[Wantmypeace]

We're considering all avenues before making any decisions, and one option is a debt management program. Has anyone used InCharge or other debt management programs? Does anyone have opinions on these companies? I'm looking at debt management companies, not debt settlement companies, btw. Thanks!

[LuciluS]

We're considering all avenues before making any decisions, and one option is a debt management program. Has anyone used InCharge or other debt management programs? Does anyone have opinions on these companies? I'm looking at debt management companies, not debt settlement companies, btw. Thanks!

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Haven't heard of them.
Did you google them as InCharge complaints?

Luci

[Wantmypeace]

Yes, and I'm not finding any. That's a good sign. BBB shows 18 complaints in the last 3 years. All are resolved or company made every attempt to resolve. That's all I can find so far, but I'm still looking!

OH, and Luci, thank you for sharing your experience on the other thread. It is so helpful to read what others have gone through and get their opinions and advice. I appreciate you taking the time to write it all out!

[HHM]

There is no difference between Debt Management and Debt Settlement. THEY ARE THE SAME THING. Debt settlement has recently been seen as more negative so now they use the term Debt Management. But make no mistake, they are the same thing. You pay a monthly payment to the firm, and "at some point" they settle your debt.

Debt managment/settlement, is, 9 times out of 10, a waste of money and time. Do a search for posts in the collection forum regarding debt settlement.

[LuciluS]

Yes, and I'm not finding any. That's a good sign. BBB shows 18 complaints in the last 3 years. All are resolved or company made every attempt to resolve. That's all I can find so far, but I'm still looking!

Hey! That's a Good Sign! Hope that works out for your. We Tried CCCS & we were beyond help Told us to see a BK Attorney.

OH, and Luci, thank you for sharing your experience on the other thread. It is so helpful to read what others have gone through and get their opinions and advice. I appreciate you taking the time to write it all out!

Well many thanks. I am just so thankful my husband found this forum. Last Oct. & Nov. I would read post after post, yadda yadda, Read all the Stickies (some need updated) & used the Search feature - sometimes you don't get what ya asked for & then just started asking questions.

Luci

[jj26]

I have a suggestion, but am not sure if you are talking credit counseling companies when you say debt management. Are you?

[jadams]

Debt management is different than debt settlement. In debt settlement the company keeps your payments in escrow until they can settle for less with each creditor as offers come in and there are sufficient funds in the escrow account.

In debt management they get the creditor to agree to cap interest and fees and/or accept a smaller monthly payment as "pays as agreed". You send the agency a monthly payment, they split it up and redistribute it monthly to your creditors. Other than limiting interest and fees, everything is paid in full. They aren't waiting for settlement offers. (At least that's the sales pitch)

These debt management programs may work, but it's not as easy as they make it out to be.

I tried one. I filled out all the information, gave them all my bills, and they sent back the payment plan (including their monthly fee). The payment was tight but workable, so I accepted. It was certainly better than my situation otherwise.

I did the first payment. I received "Congratulations, you creditor has agreed to accept the debt management proposal we sent them" letters for every single creditor.

Within two days from then *every single one* of my creditors sent the accounts to collections and refused to continue working with CCCS. They went so far as to return the payments to the CCCS (seriously, how odd).

A family member also did one. Collection calls continued for about 6 months into the plan (they said they would stop once she signed up as long as he continued her payments). Lane Bryant and Best Buy were the worst saying "We do not work with credit counseling companies." She would tell them they sent her a letter accepting the proposal. They would deny it. Proposal resent. Lather, rinse, repeat. Meanwhile crazy default interest and fees are accruing on balances.

Chase and Capital One were quick to send a "thank you for your attention to this matter, we will do the follow to assist in your hardship" letters and were actually very helpful.

Eventually around the 7th and 8th month everyone settled down and agreed to accept the payments. There has been a slow change to her balances -- not the quick 2-3 years and it will all be gone they promised her when she signed up. By my math it will be at least 6 years. (And yes, I included snowballing, compounding, etc.)

Serious problems -- one Visa card agreed to accept a smaller payment. Off-set her direct deposit to take a much larger payment in addition. And for about two years has changed the interest and fees every month so it matches to the penny what she paid. So in two years the balance has not changed, up or down, 1 penny. Calls to the DMP say "you need to contact the creditor, it's not our problem". If she calls the Visa company they say she really owes $X,000 in back payments and needs to pay that before they'll do anything.

Apparently this is what that Visa company considers accepting the plan and working with her -- they aren't reporting her as late, but they aren't reducing the balance any.

Problem two -- once the creditors agree to the plan, they close your accounts. Report no available credit. Basically all of your accounts look maxed out as far as other creditors are concerned.

You are not supposed to get new credit while in the plan anyways, but they don't explain what your credit file will look like once you finish the plan. No open accounts. Tons of late pays (reported as late while they "consider" the plan). Notations of "In Debt Management". You loose any positive age and utilization.

Better than being in debt forever, as long as you fully understood the risks.

My personal opinion is most of the credit counseling companies out there are quite shady and almost approaching scams. I would put most of them right up with the "foreclosure relief" companies that many attorney generals are investigating. They make get relief for some, but not nearly to the extent that they advertise.

At least with the BK you have a legal certainty to your situation (either discharge or a plan). With the DMP at any point the company could decide they are no longer happy and reinstate fees, sue, etc. All of the paperwork I've seen says something to the effect of just because they may agree to accept a certain payment now, doesn't mean they are waiving any of the rights they have under the original credit agreement.

[AMISLANDER]

I am also guessing they forgot to tell you that you will see all the debt you saved show up on your income tax as income?

[HHM]

Debt Management is better known as Consumer Credit Counseling.
Debt Management is somewhat undefined, I have seen settlement firms use the term debt management.

[momof3b1g]

I have used them. It was a few years ago. I was able to get my debt paid off in a couple years. I can't remember all the details. But they did save me money. I had no problem witrh them or the creditors who i was paying. If you have a few creditors its a good option.

[sharina]

In Charge is very easy to work with. Likely they will just lower the interest rate down around 5% and you still pay all the principal. You also pay a $50.00 a month fee that does not go towards any debt. Not a bad deal if you only have a couple, 2-3 credit cards.

Another interesting note is that I paid just over half my debt on one card I filed with them and then when we filed chapter 13, I asked them to stop aut0-debit and they did, no problem at all. the credit card company that I used in charge for never filed a claim in our 13 case either - about $5K left.

[Wantmypeace]

I went ahead and signed up with them, and the monthly fee is 35.00. So far, they seem very easy to work with. We'll see how it goes when we get to all the creditors and see who will accept their offers. I'm crossing my fingers because BK is out of our reach right now (failed means test for 7 and too much debt for 13). So, we'll see...

[ForumReader]

This is an interesting discussion. thank you for sharing

This is an old thread, but since it was bumped recently, I wanted to say for those thinking to go the debt settlement or management route, is to be very well informed about these services before signing up with them. These services do not work for everyone. Not even worth it in my opinion. Maybe with those whose total debt is maybe between 2 to 10 thousand, it varies, can try to settle through these services, but for those with debt that got snowballed or out of control to where it would be impossible to get them settled or paid off in a timely manner, better to get consults from bk attorneys.