You are right the Debt reduction companies are not a good idea, You can do anything they do you self. I also have also been through bankruptcy and would work hard to not have to go that route.
I would say you should check out
Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan. I would not have went through bankruptcy if I had found Dave Ramsey before. He has a couple great books "Total Money Makeover" and "Financial Peace" both are very good books. I have both. One of the best things in both are he includes all the budgeting forms in the back. They are very easy to use and has changed my personal financial standing greatly.
Other than the month to month budget form it sounds like you will need the Pro-Rata plan.
"If you cannot pay your creditors what they request, you should treat them all fairly and the same. You should pay even the ones who are jerks, and pay everyone as much as you can. Many creditors will accept a written plan and cut special deals with you as long as you are communication, Maybe even overcommunicating, and sending then something, We have had clients using this plan wo have sent $2 and have survived literally for years.
Pro rate means their share-the percentage of your total debt they are owed determines how much you send them. You send the check with a budget and Pro Rata plan sheet attached each month even if the creditorsays they will not accept it" Dave Ramsey
Feel free to pm me for more info and if you cant afford the books let me know I will help you out.
I have also been through the financial peace university that dave ramsey has. I would highly recommend it to anyone, go to his site for class near you.
Quote:
Originally Posted by pilotdude73
As I have said before, I dont want to file, but having seen an attorney, and have talked with several debt counselors, and financial advisors, it may be my only option..
the problem im having is that a debt management program(when all bills are consolidated into 1 pymnt) will not work for me, that will be 950 dollars a month, not including gas, food, student loans, rent, utilities, etc...the problem is I dont make enough money at work, cant pick up overtime, and soon to be furloughed..I have nothing else to cut, dont have a second vehicle to sell, land, or own a home...
Debt reduction on the other hand is a scam, they want me to pay over 6,000 in legal fees, put money into an escrow account in which the first several months you pay the company's fees, and yet the bills are not getting paid, a negative mark on your credit, and this stays on your record for 7yrs, and what they dont mention is that you have to file on your next taxes the exempt amount..oh yeah the pymnt for this a month is around 700dollars a month for 3yrs...again cant afford that...
this whole scenario dosent even touch student loans, and they wont be exempt in a BK..
so thats my situation...