Anyone talk to Debt counselor before filing

[sarah5]

I don't even know if I want to waste my time since I have no min left on my cell phone. Someone suggested we talk to a debt counselor, I went through military one source and they set us up with a phone consult.

Really what can they do? We are going to end up getting reposessed because we can't afford our cars and we are so upside down on them we can't refinance. I already called and lowered our interest rates on our credit cards, it still is not helping. I fall behind and end up playing catch up on our mortgage, and with 6 kids we can't not have a place to live.

What else can they suggest? We don't eat out, I can't even buy my kids school clothes, we never do anything because we don't have money. Can they work something out? Any success?

We talked to a debt settlement that said we can pay off our cc in three years.

[liz417]

Yes, I spoke to a debt counselor before I even thought of BK (suggested by one of my creditors when I called to "work something out"). That phone call was a waste of time for me, they had me list all my bills into catagories (I use quicken, so I already knew everything that was going out), then they subtracted my expenses from my income and told me that I was in the "negative" every month (no DUH! That's why I was calling!). In the end they told me there was nothing they could do for me that's when I started thinking about BK.

Now be careful about debt settlements, I've read A LOT of horror stories on this board regarding them! Most people just end up filing for BK after losing more $$ to debt settlement places.

Have you sat down and made a budget? Will your income support your expenses once your credit cards are gone? Make a few free consultations with local BK attorneys to discuss your situation.

Good Luck!

[Minnymouth]

Debt consolidators are treated just like a bankruptcy on your credit report...... so basically and moneywise - your better off using the money you would waste on a consolidator or counseling place to pay your attorney.
If a simple bill consolidation will solve your problems then filing bankruptcy may not be necessary.
But if there is no other way to solve the problem..... filing bankruptcy works out a lot better than using a debt relief program and then still end up filing bankruptcy.
Many here on the forum have already been there, done it.

[frogger]

Spend your time meeting with a couple BK attorneys, it is time better spent.

Exactly. IMO, the debt settlement and counseling services are nothing more than someone else trying to get a slice of your pie.

I don't need for them to tell me that my outgo exceeds my income. I've already slashed and burned any expense that was not necessary for survival, and I'll still so upside down that the only way to get up is bk.

Do what you've got to do to take care of your family. You can't eat a mortgage, you can't eat a credit score, you can't eat the pride you get from paying your bills. BK may be your solution to get out of debt in order than you can live on the income that you have coming in.

But.... make sure that you can live on your current income. You don't want to bk and then be right back in the same position again.

Good luck.

[hamburgervol]

Exactly. IMO, the debt settlement and counseling services are nothing more than someone else trying to get a slice of your pie.

and a way to try and slow you down on the road to BK.

[NeedHelpNJ]

I am going to file bankruptcy in a few months because the interest rate on my mortgage is going to change and after it does, I will no longer be able to afford the payment ($1500+ more a month plus $85 increase in monthly property taxes). I called the Hope Program and was connected to a credit counselor. I went through all my expenses with her and basically she told me that I could not spend less money per month than I already had. She told me to get a second job to make up the difference! She told me there was nothing more that she could do for me. I spent two hours on the phone with her and feel like it was a complete waste of time. Though my situation may be different since my debt is an underwater house and Countrywide is unwilling at this moment to work with me on the mortgage payment.