Total of what I currently have:
$19,000 owed on credit cards
earn about $2,400 per month after taxes
Rates and monthly payments on a personal loan are too expensive for me to accept; I can’t afford them.
Checking if anyone has utilized this company before or is using it now for debt consolidation. Are these reputable? Do they damage your credit report? Is it shady? merely seeking inspiration.
You may learn more about the distinctions between debt relief, debt settlement, and credit counseling from this excellent article from the Consumer Finance Bureau.
These credit repair schemes are frauds. Please stay away from them and save your credit.
Thank you for the explanation. Could you explain how this is a scam? I’m just trying to get as much information as possible before making a decision, but some of their procedures do raise some red flags in my opinion.
Sure. They’re taking a percentage for their own profit. Your going to be advised to stop making payments to the creditors, but will have to pay the credit relief company while your waiting for the creditors to settle your debt for less money. They take some off the top, which may not sound bad, but when your credit score hits below 500, you won’t feel like your monthly expenses are any better and the credit relief company has you on a contract. It doubles the risk of spiraling into more debt. That’s why some claim it’s no worse than filing bankruptcy. I would also advise going to a credit attorney instead. They can navigate things cleaner, and many have gotten better support without these credit programs and do more for their client. If you’re not wanting to go that route, another option is to talk to the creditor yourself and try to get the interest rate reduced and paying it off that way, or find a bank that will provide a debt consolidation loan to help you take care of it. The interest rate will be less, and your credit won’t talk. If you are still wanting to go the route of a credit relief program, read the contract in it’s entirety, you’ll see some sketchy language that would make you think twice.
They are in business to make money off of you; I’ve used them previously. They will nickel and dime you as well as a collection agency.My credit is currently terrible and I only have school loans remaining after leaving the program and settling with collectors on my own, but I have paid off all of my collections and credit card debt.
They are in business to make money off of you; I’ve used them previously. They will nickel and dime you as well as a collection agency.My credit is currently terrible and I only have school loans remaining after leaving the program and settling with collectors on my own, but I have paid off all of my collections and credit card debt.
Check to see if any of the local bank branches offer a debt consolidation loan. Years ago, I worked with Huntington Bank on this. After receiving a list of all my creditors, they paid them off and combined the amount into a loan with a lower interest rate, which I had to pay back over a five-year period.
The most important thing to remember is that if you continue to use credit cards to make these payments, you will just end up with additional debt.
They helped me pay off some of my debt when I used them once, but I had to withdraw from the program and file for chapter 7. I was sending them a payment every two weeks, which would be deposited into an account and used to pay off debts. Usually, I would settle all of my debt for half of it. For instance, a $8,000 debt was paid off for $4,000. Every time a new settlement comes in, they text you to make sure you want to settle for the amount.
I wouldn’t recommend it, and other commenters are right. Have you thought about contacting the credit card companies directly to work out a repayment plan? Often, they’re willing to cooperate since it’s better than having you stop paying, leading to collections where they sell the debt for a fraction of the cost.
Reach out to the banks and explain that you’ve faced a hardship and can’t continue making payments as usual. Ask if they’d be willing to lower your interest rate or offer 0% interest. In many cases, they’ll close the account but still give you the 0% APR. Occasionally, people even manage to keep the card open with the 0% offer.