searching for an appropriate way
Date: Tue, 10/31/2006 - 08:48
i have been managing my debt for years and have worked hard on my credit. due to unforseen circumstances i am now in danger of the credit cards spiralling out of control and my credit being damaged.
is debt consolidation the way? will it reflect negatively on my hard fought for "fair" fico?
any help will be appreciate.
currently my credit cards account for over half of my monthly nut.
kindest regards,
frances
Frances, since your credit card debts are getting out of control
Frances, since your credit card debts are getting out of control, your financial position at this stage is not at the best. So, if you use some professional debt management program, you will be doing something to improve your credit.
debt consolidation helps in making your payments with the creditors. This program is helpful because you get easy monthly payment plans and lower interest rates. Besides, most of the financial charges and late fees are waived off so that your total amount reduces.
The best thing for your credit will be if you can make the payments on your own. If you can't do this, you are already in a negative state and debt consolidation will only help in making your payments. The program will be in your file as long as you are using it. When all the accounts are updated by the creditors, no one knows that you used this program earlier.
what do you mean it is in my file? will it affect my Fico in a n
what do you mean it is in my file? will it affect my Fico in a negative way? also, i was contacted by Consumer credit counseling of America through this site. they charge $49.00/month. is this standard with all the companies? and is 3-5 years standard as well? i am 10,000.00 in debt. my fico is not bad. 644. it is possible next month i could be handling my credit again and in 6 months be able to reduce my rates...however this month if i go over the limit and state being hit with fees it could spiral out of control. thanks so much for your reply. still wondering and still ocnfused as to what is best.
I meant your credit report while using the term "file". The debt
I meant your credit report while using the term "file". The debt consolidation remains in the credit report as long as you are enrolled in it.
If you can manage with your payments without a consolidation program, do it. If this sounds tough, consolidation will be a good choice and take control.
Every company has their own charges and specific plans. You can shop for few more companies in the ranking chart and compare their quotes.
I went with a consolidation program myself with my 4 CC that I m
I went with a consolidation program myself with my 4 CC that I mis-handled. The reason I did was because at the time I was NOT disiplined enough to make the monthly payments thus I figured if I handed it to someone else who made them for me then they would be made. DC is not for everyone, maybe think about debt settlement instead, welcome to the boards and keep posting