This topic contains 5 replies, has 6 voices, and was last updated by Anonymous 7 years, 10 months ago.
- May 5, 2011 at 11:46 am #204358
My CC debt is very high (>$30K), and the payments are getting too high. I have a great credit rating, but I can’t keep up with high payments for the next 20 yrs. Should I use a credit repair service to negotiate the debt down, and make payments to them? If I do, they say I could be debt free in 36 to 48 months. What are the risks involved other than a bad credit rating for 3 yrs?
- May 6, 2011 at 2:56 am #259253
You can negotiate yourself.
Also- I recommend you start to tune into Dave Ramsey’s radio program. You can check his web site to see what station broadcasts in your area. Also check out his books.
He give really good advice on dealing with high debt. It’s very common for folks to call into his radio show w/ huge credit card debts.
The program that he outlines for paying debt off is hard – takes discipline.
(Also — a bad credit rating sticks around longer than 3 years.)
- May 6, 2011 at 4:11 am #259514
NO!!!! Don’t do CC. It will negatively effect your score and look very bad. I would either get a personal loan for debt consolidation, or transfer the balances all to one credit card. You may have to call one of the card companies and tell them what you’re going want a credit line increase so you can transfer the balance. They will usually do it. Then pay off the card until you can get it under half of your available credit. This will work for you. You have those 2 options. Another option is if you own your home, look to do a home equity line and pay off the balances with that. It’s tax deductible too. Plus the rates are really good right now. Good luck
- May 6, 2011 at 3:32 pm #261927
Don’t do a repair service. My credit card debt was also very high, so I got a new credit card with a 0% interest for as long as possible (the longest I could find was 12 months) and then transfer all of your balance over to that card. Make payments to that credit card and your debt will slowly decrease. When that 12 months is up, open a new credit card with a 0% interest rate and begin this process all over again. Just don’t forget to close the old account!
- May 6, 2011 at 11:21 pm #263173
Two points to make here. First, a credit repair company does not negotiate your debts. That is a debt consolidation or credit counseling company that does that kind of work. The credit repair companies fix the damage that the other two companies will do to your credit reports.
Second, the credit counseling type of businesses are good to use for many people. Most people don’t know what their rights are under the law and will just allow the credit card companies to dictate terms to them. For example: did you know that you have the right to change the terms of your contract with the credit card companies? I will bet that 99 of every 100 people who read this answer will say they did not know that you could. That is why people use credit counseling companies; because they just don’t know the laws. It is because people don’t know how the laws that are written to protect them work, that the credit card companies can get away with doing what they do to us. They put men in jail for doing that to women, so why do we allow the credit card companies to do it to us?
One other thing, you will have a bad credit rating for up to 10 years if you use a standard three year repayment plan that the credit counseling companies use.
I am not telling you not to use them. You have to determine for yourself whether or not the cost is worth the benefits. Just understand, most will promise more than they can deliver.
If you have any further questions regarding this or any other credit issues, please feel free to contact me at firstname.lastname@example.org
- May 13, 2011 at 12:38 am #274624
No, credit repair services charge you for something you can do for free. To me, they are a fraud. You get into an agreement with them, and then you basically let them pay your bills for you and if they don’t, your credit still suffers.
What you need to do is just push every extra dollar to these debts. pay more than the minimum payment, and get it reduced. You can do this yourself. Might take a little longer, but you can do it.
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