Bankruptcy? Debt Management Agency? Or call creditors myself?

Credit and mortgage advice Forums Consumer Credit Debt Management Bankruptcy? Debt Management Agency? Or call creditors myself?

This topic contains 2 replies, has 3 voices, and was last updated by  Anonymous 8 years, 1 month ago.

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  • #205918


    I’m stuck on which one of the above to do. Which one do you think is smarter especially on my pockets. I’ve already ran my credit report with Transunion so far. There’s some things on there that are old and so forth. What to do to fix my credit situation?

  • #259189


    do you have a lot of oustanding debt or bad credit scores? those are two different things. debt management will not do a thing to improve your credit scores. if there is old or mistaken info (older than 7.5 years from date of first delinquency), you could do this yourself. simply write the creditors and request that it be removed. you could do this for the price of postage. only thing is that you have to do it for all 3 bureaus.

    if you have high debt, debt management takes your money and then tries to cut deals with your creditors to take lower sums. this doesn’t help your credit. it hurts it…because the amounts will show that you settled for less than what you owed. also, creditors are not obligated to take these deals. there have been many cases of shady debt management companies taking money for a year and then the client gets a letter from a creditor saying “we have not received any money, we will be taking you to court”. when said client calls back the debt management company, they are suddenly MIA. personally, i would try to cut the deals myself. when you make the deals, get them in writing before you pay dime one, and do whatever you have to do to pay down that debt. that means don’t eat out, sell your video games, TV, etc, get a second job, etc. whatever you have to do (that’s legal) to get extra cash to pay down the debt.

  • #270911


    When you call the creditors yourself, this will reactivate your account. They will then call to harrass you about any old bills. I recommend debt settlement so that you can be insulated from the process. Normally your monthly payments go down and you are debt free after 36 months. There is lots of time for credit repair after the fact. Good luck.

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