NON-PROFIT DEBT COUNSELOR
I want to say that if you are going to go to a non-profit Debt Counselor, take your calculator so you can run the numbers yourself.
I recently had a lady that has $50,000 in credit card debt, about 10 of them were Store Cards and 1 was a Discover card. She went to the non-profit Debt Counseling company and was given a quote of getting out of debt in 32 months paying $1400 per month with the average interest rate of 9% per card.
The math makes it impossible – $1400 a month times 32 months = $44,800!
INTEREST RATES IN DEPARTMENT STORES
It gets worse. Most department stores will not participate in the non-profit program, meaning, they will not reduce their already high interest rates. Discover card will not participate in the non-profit program, so whatever their interest rates are, they will not reduce them.
Most of the cards that this lady had were store cards!
So, the question is, why would they tell you that you would be able to pay off your debt at less than you owe when most of the cards (about 30% of the total debt) is in cards that will not participate in the non-profit program?
Because they want your business!
If you check out a non-profit company, take a calculator and do the math. Then, verify which cards the non-profit company will be able to work with to lower the interest rates.
We all want to believe someone that seems to make things easier for us. But, when you LOOK, then you will know for sure.