It has been about a year and half since I wrote my first review of AmeriDebt. It wasn't one of my best, in fact, I think it was one of my worst, but it has generated more questions and more money than any review before or since. Why is that? It's very simple; Americans are drowning in debt and desperately scanning the Internet for a lifeboat.

Several magazines, students, and just plain everyday people looking for help have contacted me. I can guarantee it wasn't the quality of my review; it was the amazing claims of AmeriDebt and the American desire to be debt free while still having it all.

It's always a little embarrassing to admit that you've let your debt get out of control, but it isn't always your fault. However, it doesn't make a whole lot of difference how you get there, once your there, you still have to find a way out. There are basically three ways to get out of debt:

1) Try and do it yourself - Tighten your belt and make more than the minimum payment on at least one card until it is paid off and then take that money and apply it to the next highest interest rate and so on and so on.

2) Join a credit counseling service - They lower or eliminate the interest rates on most of your debt (only unsecured), you pay them every month, they then pay the creditors using the same structure as above.

3) File Bankruptcy - They eliminate the interest (even on secured debt) you pay the trustee every month, he pays the creditors starting with the secured ones first and going from there.

The first time I had financial troubles, I had a lot of success with CCCS. The only thing I didn't like was that I had to send a money order every month. So, I set out to try and find another company that would be a little more convenient. I started my search on Yahoo and came across AmeriDebt. It seemed like a good service and the idea of a debt consolidation loan down the line intrigued me.

The website itself is very easy to navigate and offers many great tools. You can apply online, see how long it will take you to pay off your debt at the current rate, heck, you can even view their commercial. However, there are a few key elements missing. They state that there are no "advance fees", but that's a blatant lie and I find it interesting that there are no happy customer comments or press accolades. They put on a good front, but don't be fooled just because they had the presence of mind to hire a decent webmaster.

I called and after giving the standard info, was informed of the "voluntary" contribution. This amount is equal to your monthly payment, which would be over $800, for us. This made me wary and although I was assured it was voluntary, it sure didn't feel that way. There was no mention of this "fee" anywhere on their website. Additionally, the first payment is held, regardless, until the negotiation period is done, about 30 days, which means unless you want a bunch of late payments, you have to make double payments the first month.

I told the rep that this didn't sit right with me and I would have to discuss it with my husband. I received a call the next day asking if I was still interested in the service. I told her, "No", and I haven't received any more calls, that's the only pro to this company.

We decided to use the do-it-yourself method to get out of debt back then, but it didn't work too well. Since my first review, I've learned much more about debt. I've learned that it isn't as easy as everyone says it is to get out from under, especially in a recession. It's not fun to try and get out of debt, despite the good feelings you know are coming when you pay off that final credit card. Credit counseling services work, but not for everyone. Bankruptcy isn't as bad as people think it is, but it, too, isn't for everyone.

After my husband's pay was cut, we tried to keep our heads above water and hide our financial troubles from family and friends, but after 6 months, there was just no denying it. I once again looked into credit counseling, but the cuts in payments they could offer just wouldn't be enough.

After another agonizing month, we decided to take the big plunge, the "B" word, bankruptcy. Since we felt obligated as Christians to repay our debts in full, we opted for a Chapter 13 with a 100% payback. There are a lot of advantages to this kind of bankruptcy that they don't tell you about.

While it does stay on your credit for 7 years, once you are done paying back the debt, they have a huge list of lenders that will give you credit at good rates. Now, I realize the idea is not to get yourself into this mess again, but Ford Motor Credit is one of them and how many people here can afford to pay cash for a new car? What about a new house? Who here would like a credit card that is truly just for emergencies?

Another advantage is that you can't incur any new debt while paying off the old without the trustee's permission. If you need to get a new car, you have to file a request and then you can proceed if it's granted. This keeps you from getting deeper in the hole and gives you 3-5 years (depending on your plan length) to learn to live on cash and a budget.

My husband was laid off the week after we filed and we weren't going to be able to make the payment until he got a new job. It was no problem, we just filed an amendment to our plan, got the payment dropped to less than a third of the original amount and once he gets a new job, they will adjust it again. We can now breath a sigh of relief during these uncertain times.

I'm not saying that bankruptcy is for everyone, but I did want to shed a little light on a dark and dirty subject so that those considering it won't be ashamed or embarrassed. I've used a credit counseling service in the past as well with much success, but it, too, isn't for everyone. The fact that AmeriDebt is only recommended 14% of the time here on Epinions should tell you something, but if that isn't enough, check out what the BBB has to say http://www.dc.bbb.org/report.html?compid=2404&national=Y. If you do decide that credit counseling is the method for you, go with CCCS of Atlanta. http://www.cccsatl.org/ and steer clear of AmeriDebt.


By the way, here's my old review, just in case you're curious : )

http://www.epinions.com/finc-review-39E0-671D30B-3959F030-prod1

Recommended: No