Debt Settlement and Future use of Credit Cards

Is all your debt on one card? I am in a debt settlement program with a bunch of cards (totalling 90,000) due to a business that closed, but I only had to put in the cards with balances over $500. Needless to say, some of the cards I had zero balances on were cancelled, but some, like gas cards, one visa, my discover, and a couple of department store cards were not put into the program and I continue to use occasionally, but RESPONSIBLY, i.e., paying the balances off every month. I make sure, in fact, that I DO use these cards to keep them active, but pay them off immediately, which will show on my credit report that I do have several accounts that are still active and not in any sort of trouble (although the balances were lowered on a couple of them). My mortgage has also ALWAYS been current. So I think if you have a few other accounts that you continue to be responsible with, it will speed up your credit recovery process after the settlement. The settlement program allows you to keep one general purpose account out of the program, like a visa or mc, for emergency purposes, but it should be one with a lower limit and lower interest rate if possible, to keep you out of trouble with that one as well.

Thank you for your response. I was actually referring to future ability to open a new credit card e.g. 5-7 years after closing my CCs through the debt settlement process.

Thanks!

That's why I asked how many cards you have now, and if they would all be entered into the program - because your chance of getting new credit in the future hinges on an overall credit score and if you have current cards or loans that are being used responsibly in spite of a settlement program, it can keep your score a little elevated over what it would be if ALL your credit tanked. Your credit history accounts for a full 1/3 of your credit score so it is important to keep some GOOD history going, too. I would think that you would rebound pretty quickly after a settlement if you continue to use any available credit wisely, and it would certainly not take 5-7 years. Once the settlement is over, your score will start to go up again unless you find yourself in another mess.

Thank you for the detailed response. I appreciate your feedback. I have about 5 credit cards/lines of credit that I will be putting into the settlement program. I am keeping one card open that has a $700 limit and in which the payments are very manageable and to your point, will help me establish "good payment" history.

It sounds like you are on the right track! I read on this forum several months back that a man got a mortgage just months after completing a settlement program. Of course, the whole credit industry is in the crapper right now, but I feel this is the perfect time to be in a settlement program, because by the time things turn around, we will be done with our settlements and have rising credit scores again and able to start over.

It sounds like you are on the right track! I read on this forum several months back that a man got a mortgage just months after completing a settlement program. Of course, the whole credit industry is in the crapper right now, but I feel this is the perfect time to be in a settlement program, because by the time things turn around, we will be done with our settlements and have rising credit scores again and able to start over.

I'm over my head and no place to turn. I have no idea what debt relief company is honest and reliable. any suggestions?
Thanks.

I'm over my head and no place to turn. I have no idea what debt relief company is honest and reliable. any suggestions?
Thanks.

How come everyone's posts are coming up twice?

If you want to go with a debt settlement company, make a list of all that you can find and check them all out with the BBB. Narrow them down, type the names into the search box above, and see what people have to say about them. I am with Superior Debt Services out of Fort Collins, Colorado and have been very happy with them. 10 months in, and they have settled three accounts including a couple of my biggest ones. I found this company through a lot of research and phonecalls to ask questions and check out the process. But be sure whatever company you go with, that your funds you put in each month are into a separate, FDIC-insured bank account that you have control over. This prevents a shady company from cleaning out your bank account, like I hear some have done. This way, only a certain amount is assigned to the company each month for their fee, and the rest goes to settling the accounts. Check around. Don't make any quick judgements, and find out everything you can. It might take weeks, but pick someone you are comfortable with, is up-front with their fees, and answers your questions directly.