I too made a very honest attempt to get out of debt from all of the bogus credit card companies out there who got me in such a mess. But that is another story entirly. Debt Management failed to tell me that they would be taking 37 dollars out of the 150.00 a month I agreed to pay them. I even payed two times the amont that they requested and was supposed to be out of debt in less than one year.
Well I paid these people for about 8 months before I realized what was going on. I did some things during this time I shouldn't have done some things that the second person talked about. But while I was paying this company they were paying varying amounts to each creditor. One creditor Capital One Credit Card was getting paid $20 a month. As the first person said the first month's worth of money the first $150 went straight to debt management if they are truely non profit as they told me wouldn't they be interested in getting me started to my financial success by taking my money and paying my bills.
Since they did take the first months money capital one got paid no money the first month therefore they said the account was late every month and although they were not charging me the over the limit fee they were charging me a late fee of $25 so every month I was losing $5 a month on this account although it was being reported to the credit agencies as current. Another creditor after agreeing that I was in a mess pretty much to sign this agreement with me to lower my interest rate and take my 90 day past due payment and turn everything into current.
Then when I got my balance paid a couple hundred dollars below the minimum. They sent me new a new card in the mail just use it to activate it. I used it then they charged me all the annual fees and participation fees and who knows what other fees to put me back over the limit tell me I defaulted under my debt management agreement and that I was to start paying my regular bill now which by this time with all the fees the minimum due was well over one hundred dollars. The other creditor I was paying had already written my debt off as bad debt but failed to tell me that is what they were going to do.
So I was paying First National Credit Card every month while they reported my account to the credit agencies every month like I hadn't paid anything that they had written the debt off. It was only this far up in the process that I learned that I was paying debt management 37 dollars a month to do absolutly nothing but take my check for 150 and deposit it into there account and write three checks out for 113 dollars. There work was done. They would do nothing to clear up any of the problems with capital one. They were supposed to be helping me manage my debt and communicating with my creditors yet they probably didn't even know that cross country bank reissued me more credit and that the late fee was being charged each month by capital one.
Even though I called them every couple of months and asked about it. Nothing was ever done. Finaly when I found out where all my money was going and all the hard work they were doing for me to earn it I decided to quit there program. I was just a kid for these companies to be able to do this to kids is really insane these credit card companies pray on the poor and then the people who are supposed to be non profit and helping you out are nearly as bad as they are. They just want to get there money and go on. As long as I payed them I couldn't get them to talk to me. As soon as the check quit coming they called my house repeatedly. Something really has to be done.
Wesley
coeburn, Virginia
U.S.A.
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