I've been reading in some posts that a lot of you have used debt management or consolidation companies to help elimate your debt. Which ones have you used? Do they charge fees for their services?

The amount of these companies are so overwhelming and I'm so scared of getting scamed or something that will take more of our money that we don't have. Anyone have some advice?

I just posted this in another place, but I think it fits better here

I've been reading in some posts that a lot of you have used debt management or consolidation companies to help elimate your debt. Which ones have you used? Do they charge fees for their services?

The amount of these companies are so overwhelming and I'm so scared of getting scamed or something that will take more of our money that we don't have. Anyone have some advice?

Personally I'd STAY AWAY from debt management companies. You can do it yourself if you put your mind to it and REALLY want it badly enough.

Read a ton on this site every day, get yourself motivated.

Go to DaveRamsey.com and listen to his show, you can listen for free through the archives.

Make a plan for yourself, a budget and stick to it.

Dave Ramsey's plan will walk you through it all. Some find it a little intense and have altered some of the steps, do what works for you.

I think debt management companies are a huge rip off!

I've not used one personally but I've not read great things about those companies in general...you can, as an individual person, try to lower your interest rates, set up payment plans and get things under control etc Have you tried that yet?

Your 3 worst debt consolidation moves - MSN Money

Knee Deep in Debt

National Debt Consolidation Scheme Misleads Consumers About Costs, Benefits, and Nonprofit Status, FTC Says

Debt Management - CCCS is the only legit company I would feel somewhat comfortable in recommending. However, it's going to destroy your credit. If you don't need to use new credit again in the next 5-7 years, go for it, but if not, I'd stay far away and do it yourself.

Another plug for Dave Ramsey. I've gone from nothing to my name with tons of debt to being almost debt free in the last 16 months. I will be debt free in July of this year. Granted I don't have a house, so it's not like I was battling a mortage, but everything else is gone/ will be gone.

Always remember, you didn't get in this place over night, you are not going to get out of it over night either. Slow and steady with a lot of personal disapline has helped me tons.

Good luck and congrats on at least taking this first step, half the battle is acknowledgng you have a problem and asking for help.

I believe that you take a hit on your credit rating if you use these agencies. Also if you get a debt forgiveness you have to pay taxes on that amount. Our accountant was telling us how many times he gets angry people who didn't know that.

I agree, if you can stick to a budget, cut out unnessary spending you can dig yourself out without an agency. It takes time and determination.

Yet another plug for Dave Ramsey...we drank the kool-aide so to speak and have been able to knock down over $20k in debt in the past 14 months or so. (We expect to be debt free by December of this year). You can do this yourself and in the process will learn a lot about how to handle your finances so that you don't get in this situation again. CCCS is the only one that is really non-profit that I know of and doing their program looks as bad on your credit as bankruptcy.
Find a copy of Ramsey's book "The Total Money Makeover" - it has changed our lives.