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People get into debt and over their heads in various ways. As for myself, it was a journey motivated by good intentions. I was thirty four and had never owned a credit card. Thinking it was time to build myself a credit rating and to have a base to purchase a home sometime in the future; I applied for two. My job income was more than adequate to keep the cards paid down and, within a year I increased my limits and added a third card.

Ah, but how the might fall! My secure job became the catalyst for my deteriorating health. I was forced to quit. Suddenly the manageable balances on my cards seemed unreachable. I had to take low paying jobs to make ends meet and could only manage the minimum payments. Soon I was using the cards to buy food, pay for gas and to cover any other monitory shortage for the month.

Then the collection calls started. I tried to negotiate lower interest rates but this still didn't help. I was stressed out, frustrated, begging the creditors to give me some kind of options. All I received in return was contempt and judgment. I finally had to admit that, at these rates, I would never pay the debt off unless I landed another high paying job. My options were to declare bankruptcy, seek credit counseling or hide out in the bush for the next twenty years. I opened the phone book and started making calls. I was looking for referrals from law offices specializing in bankruptcy, explaining that I wanted to pay off the debt but did not know where to start. I could try to negotiate with the banks on my own, which I had already tried, or get a company to negotiate for me. I found a company and I made the plunge.

I must say, it was painless. We discussed my options and what debt I wanted to include in the contract mix. I filled out a budget and we decided on the amount I could realistically afford to pay each month. I was informed that my credit rating would drop to an R7, just two points above bankruptcy, but it would take a shorter time for the bad rating to be removed from my credit report, only six years opposed to ten. Next, the credit counselor made all the calls to my banks and managed to cancel the interest on two cards and lower the interest to 8% on the last. There was to be a small fee included in the payment that would go to the company who handled my debts. The debt would be paid off in just under five years.

I can't say that using this option hasn't been without problems. One of my banks has removed most of my banking machine privileges and decreased my overdraft based on my credit rating. My other bank has not changed my services and has just recently increased my privileges. I have about six months left of payments and I will finally be credit card debt free.

Did using a credit counselor company help? I believe so. It simplified my budget, the collection calls stopped immediately and it gave me the flexibility I needed when things were on a down swing in my life. I would suggest that if you are thinking of going this route that you do your homework. Take the time to research companies to find the most reputable firm in your area.

Learn more about this author, TJ Cameron.
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