Debt Consolidation? Ameridebt specifically

[The Dancing Peacock]

Has anyone ever used a program like Ameridebt? They claim to be a non-profit organization that helps people out to give you one payment, instead of many. I don't have any debt (no student loans and pay off the CC every month) but my parents do. I want to help them get rid of it, but I wanted some evidence to show them that this is somethiing helpful for them to do.

Any experiences with this org?

 

[RossMAN]

Do your parents have a house or other property they can use as collateral for a home equity loan? That's what I would do, plus the interest you pay can be tax deductible.

 

[The Dancing Peacock]

pretty sure they have one.

 

[RossMAN]

Originally posted by: The Dancing Peacock
pretty sure they have one.

They have a house or already have a home equity loan, which one?

 

[The Dancing Peacock]

Originally posted by: RossMAN

Originally posted by: The Dancing Peacock
pretty sure they have one.

They have a house or already have a home equity loan, which one?

heh, sorry. yes on the house, pretty sure on the h.e. loan.

 

[aphex]

Ameridebt is a dangerous company to deal with. A year ago or so they grew too fast and took more customers than they could handle, leaving many customers who would send in monthly payments, but never get those bills paid. Also, don't deal with ANY debt consolidation company that takes your entire first monthly payment (whether it be $200 or $2000) for themselves. Im not sure if Ameridebt has changed their practices (they very well could have), but BE CAREFUL.

 

[compuwiz1]

So what is a good alternative to Ameridebt, if one has unmanagable debts and creditors, who simply do not want to work with the customer? Bankruptcy is not an option...I owe the money and want to repay it.

 

[wnied]

Try looking into any consolidation programs your local bank or credit union you've dealt with has. Better to deal with someone whose got a credible record and legitimate business practice, than to deal with a new fly by night company thats got bad press from the BBB on its record.

Thats just my .02 cents anyways.
~wnied

 

[mattyrug]

I asked my brother who is a Loan and Credit Officer for a local bank, his suggestion was Ameridebt. I did some reading, amd settled on them. So far so good for me. I'm into the 3rd month. I hate to even admit I had to go into debt consolidation.
The only thing special that they (or any of 'em) really do offer is negotiate a lowered, or no interest rate with your creditors, also allowing you to make lower monthly payments. They supposedly have a 'Financial Schedule' that calculates your monthly spending habits, to make you more aware of how much money you waste, but it was nothing I didn't know. Be forewarned, it can take up to 3 months before they work it out with your creditors, in the meantime call them and tell them that you're doing it. In the meantime keep sending something to them. Every little bit helps to keep them from sending it to a debt collector. If you're far behind, it will help, but may hurt your credit rating, also you can't use any account, or cards you pay off through it (until they're clear). I had 3 cards, and a big medical bill that got out of hand (overdue payments, interest), and so far, i'm back in good standing.

Good luck if your creditors have sent anything to a debt collection agancy. I had one card that was about ready to be sold to a debt collector, and Ameridebt claimed to be 'negotiating it', but that never happened. Now I've got a NASTY company (beware of Arrow Financial Services :|) that has crossed the line into unfair, and illegal collection practices. After they told my 65 year old mother they were gonna 'Lock her old a$$ up' I called the local AG's office. I tried to work it out with Ameridebt, and Arrow, but nothing came of it, and I'll have to go to court.

 

[Lucky]

anyone know if this would, for example, affect your credit score to the point that you wouldnt be able to get like a car loan?

 

[mattyrug]

I'll let you know in about 6 months!
I don't know honestly, My Brother tried to explain how the whole points system works, and I'm no good w/numbers.
He says, basically, yes it will, until you get your balances and credit practices back in good standing.
Someone wanna jump in here if I'm wrong?

 

[compuwiz1]

If you are to the point where you need a program like this, then credit buying power, credit score or the ability to buy anything on credit should be the furthest thing from your mind. What you should be focused on is, repaying debts in the most efficient, and least costly way, then ultimately using the money you save to enhance your net worth, and ultimately your financial security. The credit trap here in the USA, is one of the most powerful oppressing forces you will ever come face to face with, if you don't recognize it for what it is, and deal with it. We are a country driven by comfort, convenience, and security that money can buy. Unfortunately, most of us do not have the cash to lay out, so we grab a credit card. Ouch! Bad move. You will pay thru the nose for that neat little TV or DVD player you just whipped out the credit card for. :Q

 

[FoBoT]

there are some better choices -> linky

? If you're in credit card trouble, stop using your credit cards.
? Pay off your debt 75 percent faster by making half your regular payment every 14 days.
? Stay away from offers that tempt you to buy merchandise with no money down, no payments and no interest until a later date.
? By paying the minimum payment on your credit cards, you never work off the balance. All you're doing is paying interest on the early debt you took on.
? When you get into financial trouble, create a pyramid of priorities. The most important thing to pay is your mortgage or rent. The next priority is your car loan, and the third is your utilities, which keep your house functioning. After that you pay your unsecured creditors - credit card and loan companies.
? If you need help, don't immediately file for bankruptcy. The best option is Consumer Credit Counseling, which can help you work out a debt repayment plan.

 

[FoBoT]

Originally posted by: RossMAN
Do your parents have a house or other property they can use as collateral for a home equity loan? That's what I would do, plus the interest you pay can be tax deductible.

if you use your home equity to pay off consumer debt (ie credit cards) but you don't "fix your problem" (ie spending too much) , you can end up losing your HOME, that is BAD

in general, if somebody has run up too many credit card debts, using their house to pay them back is a dangerous path to follow

 

[AnyMal]

Compuwiz is abolutely right; there is nothing more sobering then receiving your credit card statements before the end of the month and thinking "how in the world am I going to pay for all this?" You thought that $1,000.00 TV will only cost you about $30.00 per month, but who just buys TV? You "need" that brand new entertainment center to go with it, and a new recliner and so on and so on... Until your minimum montly payments are into hundreds a month.. Credit cards, car loans, student loans pile up like a snowball sending you spinning down the debt hole.

Financial self-discipline is more difficult to accomplish then say dieting; banks that issue credit cards are not housed in barns and shacks but in the most elaborate buildngs and guess who's paying for all that?

I choose to get out of debt on my own, but it may not work for you. Find the plan that works for you and stick with it. Believe me that nothing feels better then paying cash for stuff, knowing that you own it free and clear makes it all much sweeter. You may have to settle for a 27" TV instead of 36" but hey!, just sit a little closer, that's all

Remember, credit card companies are NOT your friends!