Introduction
I'm really glad that I get to write this epinion about ERC Debt. They have helped me turn my financial situation around and get on a good track toward being credit debt free. I'd highly recommend them to anyone who is thinking about consolidating their credit card debt.

Once upon a Time...
I've got credit card debt. A lot. I started acquiring this debt in college and up until about a year and a half ago, I continued building more. In January of 1999, I decided it was time to cancel the cards. I called all of the creditors and cancelled the accounts. This was done mostly to prevent myself from charging any more on the cards. By February of 2000, I had gotten to the point that I wasn't able to pay every bill every month. Up to this point I had near perfect credit. Once a few 30 and 60 day late items showed up on my credit report, I decided that it was time to do something to get these cards paid off. I don't own a house, so I couldn't get a debt consolidation loan and I had too much debt to qualify for any other type of loan. Before my credit report started to tarnish, I didn't want to join a debt management program because of the fear that with a good credit history it would show as a bad mark. Since I now had a few bad marks, and I was seeing more to come, I decided it was time to look at debt management programs.

Say No To The Evil Non-Profits
Years ago, my roommate at the time joined the debt management program with Consumer Credit Counselors of Los Angeles. In the beginning, it was a nightmare for him. With a non-profit debt management program, you are typically required to include every single debt you have in the program. Every credit credit card, all loans, etc... Additionally, while you are in the program, you are not allowed to acquire any new credit or you will be terminated from the program. Also, you cannot directly pay the creditors or you are terminated from the program. These combination of factors created a situation for my friend that made me very carefully choose my debt management solution. You'll understand why as you hear his story versus mine.

His Story
My friend joined with good intentions of getting rid of the debt created by his ex-wife during their brief marriage. She left him with upwards of $20,000 in credit debt. Once he joined the program, the CCC of LA started working with his creditors to create agreements for a lowered payments and interest rates. At first everything seemed to be going well. His creditors set reasonable payments and rates. He started sending his monthly payment to CCC of LA who then pays the creditors. For the first few months, each time he received his statements, it would show that he was still late on his payments. He called the companies and they said that they changed their minds and they wanted a higher payment. This is really just a trick the credit card companies play to get you to send them more money and if you don't, they charge you more fees. Because of the program's rule of not paying creditors directly, additional late and over the limit fees continued to build while they worked out new agreements. This happened for months and the fees ran in excess of hundreds of dollars. While this problem was only happened in the beginning, it's likely to cost him around $1000 over the course of paying it off. Plus, the creditors continued to report late notices to the credit reporting agencies.

My Story
With all this in mind, I was somewhat fearful about taking the plunge. I had a few bad marks on my credit report, but it was still relatively in tact. I also didn't want to include every piece of debt that I had in the program. I only wanted to include my Visa and Mastercard accounts. Plus, I wanted to have the option of financing a car if I had to in the future.

I started my search for a debt management solution on Yahoo. ERC Debt was actually the very first program I looked at. I subsequently evaluated others, but something about ERC's site said "honesty" to me. I called the toll free number at about 9PM on a Friday night. Someone answered with a simple "Hello." Thinking I had the wrong number, I asked if I had ERC Debt Solutions. He said yes and that he was the owner and he was working late and during the weekend. He took the time to answer all of my questions. With ERC, I didn't have to include all of my debt in the program. I could still get additional credit while on the program. I could pay the creditors directly if necessary without being disqualified. Additionally, he explained that part of my fees went to legal representation. This means that if there are serious problems, you have a lawyer already on your side. I tend to believe that it also discourages the creditors from causing problems in the first place. The owner suggested I fill out the form on their website to get the process started. I mulled it over for a few days, and looked at a few other programs before deciding to give ERC a shot.

I filled out the form on their website and followed it up with a phone call. The people at ERC immediately started working with me. They gave me estimates for monthly payments and interest rates and I was astounded. My rates were at 24.9%, 24.5%, 17.9%, and 15.9%. After joining the program my rates dropped to 15.9%, 9.9%, 9.5%, and 0.0%! My payments dropped by about $35 a month even after including the monthly fee to ERC. Additionally, they explained that any currently late payments would be made current and all over the limit fees would stop.

Now that I had joined the program, I expected the problems to start. They never really did. I had one small problem with one creditor. After a few months, I was still showing late charges on one monthly statement. My payment to ERC is due by the 10th of the month and one of my credit card payments was due on the 13th. Because of this short period, ERC didn't have time to pay out to my creditor. When I called the creditor and asked if we could change the due date, they simply said, "No." I called ERC and explained the situation. They were on top of it right away, and the next statement showed no late fees.

My favorite thing about ERC is their method of accepting payments. I simply call them and give them a check number and dollar amount. That's it! I'm paid for the month.

Conclusion
I've now been in the program for about five months and I have no complaints. My bills are paid on time. The balances are finally dropping. And best of all, the creditors stopped calling. Recently, a co-worker of mine signed up with ERC and so far she has been having the same wonderful experience with them that I have. If you are thinking about getting rid of that credit card debt, I highly recommend ERC.

(For a related story on where my debt came from and how credit card companies prey on young college students read my "Beware of Credit Card Offers On Campus!" epinion.)



***Update*** 3/11/2002
On February 4, 2002, bboutit, wrote another reveiew regarding ERC (now called JDS). This update serves as a "long term report", after two more years in the program, as well as an opportunity to comment on some points bboutit made.

First, to allay bboutit's concerns, I do not work for JDS. I am an honest to goodness customer. I work for a Fortune 500 company that is not affiliated with JDS Credit Counseling or any of their affiliates.

I don't quite know why bboutit's experience was so bad in comparison to mine, but I still stand behind the words I wrote almost two years ago. JDS, has continued to provide to me the same, excellent, level of service that I received when I began the program. I have not had any issues with creditors since joining, my balances have dropped dramatically, and I can finally see light at the end of the debt tunnel.

Payment Coupons
I don't receive payment coupons, but JDS sends 12 labels, addressed to them, annually. They do this even though I make my payments over the phone and never mail them anything. The payment amount (at least in my case) doesn't change. I have had the same minimum payment, due on the same day, since I began the program. I don't really see the need for monthly payment coupons and would prefer not to receive them in any case. I get enough bills in the mail as it is.

First Payment
I don't know about the first payment to "Key" issue. My first payment went directly to ERC to cover attorney fees as well, but this was over two years ago. The process may have changed. The attorney fees are, in my opinion, reasonable. I feel very comfortable knowing that JDS has an attorney available to validate the legality of my initial contract and to argue in my favor in the case that something out of the ordinary comes up (nothing ever has, by the way).

Over The Limit Fees
As for the over the limit fees issue raised by bboutit, I also was over the limit on one of my cards when I joined the program. My over the limit fees did stop with the program, but not until my package was accepted. I can hardly blame JDS, for this. It was my spending pattern that caused my cards to go over the limit and once everything was arranged the fees stopped.

Update Summary
After two years in the program I couldn't be happier. I don't worry about my cards or my credit anymore. JDS has provided an excellent service which has helped eliminate a big area of stress in my life. Thanks, JDS!

Recommended: Yes