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I am so Mad!!!

post #1 of 8
Thread Starter 
I really screwed up my credit in college (Should have listened to my parents; I guess this was just a lesson I had to learn for myself). Well I decided to take control and decided to do credit consolidation. The credit union turned me down; too much credit. The non-profit CCC agency said I wouldn't be able to get an appointment for a couple weeks. So I did some searching on the internet and found a for-profit company that could work with me immediately. I checked them out with the BBB and the Chamber of Commerce (they are a member of the CoC). Everything checked okay so I went ahead and got everything going. Well I pay this company, they pay my creditors. Well, they haven't been paying my creditors on time. (It's a lot more involved than this but it's too long to explain, but that is the jist of it). Because of this my minimum balances due on my statements are outrageous, so even if I try to get out of the arrangement I am s.o.l. I am so upset and frustrated right now I don't know what to do. I've thought about legal action, so I contacted a bankruptcy laywer (the add in the yellow pages indicated that they don't just deal with bankruptcy but other credit situations). The lead assistant told me that they really only do bakruptcy and it sounded like I would need a consumer lawyer. She said I should go ahead and schedule a free consultation with them though because maybe the lawyer could give me some advice or guidance or refer me to a consumer lawyer. I'm at my witts end. I made the appointment but I am so afraid that I'm going to hear that bankruptcy would be my only option because I can't pay what the statements are asking and the amounts wouldn't have been so high if the company would only pay them on time. I tell the company this but they say that what my statements say doesn't matter!!!! Yeah right! I've called the credit card companies and it does matter! I don't want to file for bankruptcy, I would feel so ashamed! I want to do the responsible thing but this company has made my situation worse. If I hadn't signed up with them I would be fine (It would take many more years to pay it off, but I would have been fine). See they got my interest rates lowered so low that with the payment plan they set up I would have my debt payed off in 5 years. I am so confused and mad!!!!!!!
post #2 of 8
Thread Starter 
I know this is really all my fault but I really want to make it right and I've only made things worse by using this stupid company!
post #3 of 8
Sabra - We did the exact same thing with our credit cards years ago. I think the company we used was Debt Councelors of America. I think there were a few bills that didn't get paid at the statement date each month simply because they sent all the bills in at one time. Being late on these didn't do anything worse to our credit rating than we already did. But if I were you, I'd talk to the lawyer because, as a bankruptcy lawyer, they'll understand all the ins and outs of the credit business.

You're not alone out there; don't feel bad. Lots and lots of us were irresponsible at one time and racked up a bunch of credit. It is so frustrating and so hard to get ourselves out of it.
post #4 of 8
Thread Starter 
It's just that I can feel that there is something fishy about this company even though I checked them out (First Mutual Financial). How can a payment they sent to my creditors magically disappear. And why in the world can they not be consistent about when they pay my creditors. They get their money from me electronically on the 15th and in the past my creditors have gotten their payment by the end of the month. Well two different months (not consecutive) the payments have not gotten received and this last time I had to call and check up on it three times. Finally one of the creditors has gotten a payment from my January 15th payment yesterday! The others still haven't gotten anything and I am getting notices that they are going to take me off the program if they don't receive payment and one says that the payment wasn't enough. For goodness sake this is an agreement FMF made with them for a certain amount so how can it suddenly not be right?
post #5 of 8
I have been in debt before, and it's absolutely miserable. I came into some money that allowed me to pay off my $15,000 credit card bills. I haven't carried a balance since then (6 years ago). Now I pay cash (or use my bankcard that works like a visa) for everything. Payed for my $4000 living room straight out. I saved until I could pay out right. I learned a valuable lesson and don't ever want to be back in that situation again.

My heart goes out to you because I know how hard it is. It sucks you tried to get help, and did the best you could and that ended up biting you in the A$$. I wish I could give you some suggestions but I don't have any.
post #6 of 8
Thread Starter 
Well the other companies got their payments today. This is what I have decided I am going to do. I canceled the appointment with the lawyer. Now I'm going to send FMF a letter certified mail telling them that this is unacceptable because, they stated to me in writing (which I still have) that my creditors must have their payments no later than 30 days from each other and that electronic withdrawl is the best option to ensure this will occur. I've kept up my part of the agreement but as these two incidents prove, they have not. So, that's two strikes and if there is a third I will be seeking legal council and reporting them to the Better Business Bureau. Hopefully this will let them know how serious I am.
post #7 of 8
Sabra - That sounds like a great idea. Hopefully you won't be having any more problems with them. I hate being in debt. The culture these days really pushes immediate gratification, spend, spend, spend. And if you don't have the money, that's ok, because you can have credit! It sucks. My husband and I don't have any credit cards anymore. We just use our debit card for everything; it's a Visa type thing. And if we can't pay, we do without. It's hard sometimes though, especially with kids. They hear a lot of "Sorry, mommy can't buy that, we don't have the money." But I want them to grow up thinking money does not grow on trees, and credit is dangerous.
post #8 of 8

What a situation! Bankruptcy is an extreme option. Before you start down this road, and since you've already tried a debt "mis"management firm, I'd like to make a suggestion.

Perhaps you've heard of a radio personality named Dave Ramsey, perhaps not. Anyway, he's a financial guy, on the air (out of Nashville for 10 years) from 1-3 p.m. CST and live on the web at Dave Ramsey He & his wife went bankrupt and lost $4 mil when they were in their 20's. He offers sound advice and encouragement. After listening for a few months, I can't count the number of calls he's taken from people in situations similar and in some cases worse than yours.

No, I'm not hustling anyone, nor do I receive anything for "advertising". I'm speaking just person-to-person here. He's written two books, the first being "Financial Peace". I recommend this, as its gotten our family's financial picture turned around with nothing more than common sense.

Try calling...I'm sure he can steer you in the right direction.

888-TALK-BAK (888-825-5225)

My best to you and yours!

P.S. I've no doubt you'll get this turned around. Hang in there!
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