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View Diary: Survey: New bankruptcy law isn't working (22 comments)

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  •  The bigger figure in the linked story (4.00)
    is that only 3.3% of bankruptcy filers qualify for the services that credit counseling firms offer.

    "Those who can make you believe absurdities can make you commit atrocities" -- Voltaire

    by ohwilleke on Wed Feb 22, 2006 at 02:55:05 PM PST

    •  I checked extensively.. (4.00)
      ..into the "credit counseling" organizations. They really don't help much anyway. For example, my monthly credit card bills alone was about $1050. They told me I could pay off all my credit card bills in 5 years, but during that time I would:

      1. pay about $1150 per month (even more than I was paying)
      2. could not use a credit card during that time

      Had I done this, I would have had not one penny of savings for 5 years and no credit (I mean..no usable credit). What would I have done if I needed a new car? If a furnace in my shitty little mobile home died? Other emergency?

      Bankruptcy was a far better option. My credit card companies had easily been paid the principal of everything I borrowed. They lost nothing. All other debtors were paid.

      I got in 2 months before the new law (I had my eye on it). It's just sad others can't have a fresh start like I did.

      •  Well (none)
        You're right--many of these "counseling firms" are shams. The only one I would even consider is Consumer Credit Counseling Services. Frankly most people can negotiate with the credit card companies on their own. That is, they will allow payment holidays and some flexibility if you negotiate with them directly. There are steps to do it.

        You're right about having to turn over all your cards. That's why a lot of people I know will not go to those agencies. What if people do have emergencies?

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