debt management or debt settlement?

Since you are young and don't have mortgage and other such obligations, it may worth taking a shot on your score as it is already low. The credit score would heal eventually if you can maintain a healthy credit habit in the future. But for now you may concentrate on getting out of debt.

You may decide based on your immediate and long term financial goals.

$10,000 is not a debt. If you have a decent job you should be able to get over that fairly quickly. You pay the minimum amount until you have a decent job than set some money aside to pay off the 10,000. Meanwhile, avoid using any credit card.

However, if you decide to pursue debt settlement path than you avoid management and go straight for the piggy bank (Settlement).

Please list all your creditors in order to assess who will take what.

Do any settlement yourself...you dont need to pay anyone else to do it for you.

Greetings Daboywonder007,

As Clint Eastwood would say and I'm paraphrasing "Do you want to be debt free...well do ya?".

I'm guessing that your answer will be YES!

Face the facts:

1. You're young.

2. It's 10k.

3. You seem to be more worried about a credit score than being debt free.

4. Two of your accounts are in collections.

So look in the mirror and think it over.
Debt settlement is one step above bankruptcy.
It will stay on your credit report for a while.

Debt settlement is a quick way to get out of bebt.
But with only 10k on the plastic addiction.....you could pay it off.

Google Dave Ramsey and become an avid follower.
You'll be surprise how fast 10k can become ZERO!

But if you go the debt settlement route.....ask questions in here.
And read everything over and over again.

Plan your action and put into action your plan.

It ain't easy but you can do it.
(With a little help from your friends in here)

The decision is yours.

Best of luck.
King "Kash" Jabba Labba

I decided to do the debt settlement program. The idea of being out of debt in 18 months was too appealing. And it was only like $100 more a month than my minimum payments all together, and this was only because i wanted to be more aggressive. My credit score is already poor so i think the hit is worth it. I will come back when my program is finished to see if I still feel the same way.