I have a somewhat decent credit rating (around 650)BUT major debt. :( As a single mom I struggle every month to make sure all of my creditors are paid ON TIME every month and I also make sure I pay a little more than the minimum requested. However, I can't seem to get the balances down b/c the interest rates are so darn high and anytime I make a little headway, I end up having to use the card again for some emergency or work/child related expense. I am under the impression that debt consolidation would have a negative effect on my credit rating. Is that correct? And if so, any other suggestion on how to get out of this credit card debt without it negatively affecting my credit rating? (I do not own a home so I can not utilize a home equity loan). Thanks for any information you may provide. :D
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.