I have 4 credit cards, and they’ve all gone to collections—total debt is around $13k. I’ve been thinking about using a debt relief program, but I don’t know which ones are legit. There’s so much conflicting info about programs like NDR and Freedom.
Anyone got suggestions? Or should I just suck it up and pay them off one by one? I feel completely lost.
Also, I want to rebuild my credit, but I can’t even get a basic credit card to start over. Any advice is welcome.
You need to deal with your collections and debt before thinking about getting another credit card.
Consolidation can help, but only if you’ve dealt with the reason you ended up in credit card debt in the first place. I’ve seen people consolidate and just get back into debt again. Try settling with the credit card companies.
@Hart
Thanks for the advice! Any tips on how to get them to agree to settle for less than what I owe? I’ve heard some people were able to do that.
Honestly, just file for bankruptcy. Rich folks do it all the time. You’ll be able to get new credit cards within a year—yeah, they’ll have higher interest rates, but give it about five years, and you should be back on track.
You could try Consumer Credit Counseling services. Or, if you really want to go the bankruptcy route, maybe build up more debt so it’s actually worth it.
Reilly said:
You could try Consumer Credit Counseling services. Or, if you really want to go the bankruptcy route, maybe build up more debt so it’s actually worth it.
Wait, are you actually suggesting they steal and rack up more debt? That’s wild.
Fixing your credit will take some time. What are the balances, minimum payments, and APR on your cards? What’s your monthly income, and what other bills do you have?
Paying off your debt is the best way to fix your credit. How much do you make?
You’ve got two choices: work multiple jobs and pay off all the debt, which could take years, or file for bankruptcy and start fresh. I tried the first option with my wife when we were dating, and it was brutal. Eventually, we realized bankruptcy was the smarter move. Don’t let anyone guilt-trip you into staying in debt. Rich people file for bankruptcy all the time.
Maybe credit cards just aren’t for you. Pay them off, cut them up, and don’t get any new ones. You’ll be fine without them.
Jensen said:
Maybe credit cards just aren’t for you. Pay them off, cut them up, and don’t get any new ones. You’ll be fine without them.
Ugh, harsh truth 
But how can I rebuild my credit without using credit cards?
@Dustin
You should rebuild your credit. I once heard about someone who had saved a lot but didn’t have any credit, and in an emergency, they couldn’t even rent a car. It’s worth getting your credit back on track. Maybe try a secured card from Navy Federal or Experian.
@Dustin
This sounds like someone worrying about their next drink after deciding to quit. You don’t need credit cards. Paying interest just to keep a credit score isn’t worth it. Instead, focus on saving so you have cash for emergencies.
@Jensen
I get that, but what if I need a loan for a car or something later? I’m not trying to get another card—I just want to fix my credit score.
Dustin said:
@Jensen
I get that, but what if I need a loan for a car or something later? I’m not trying to get another card—I just want to fix my credit score.
You’re worried about getting a low-interest loan in the future but fine with paying crazy high interest on your cards now? That doesn’t really add up.
You could try negotiating with the creditors to settle for a lower amount, but you’ll still need to pay something.
For secured credit cards, I’ve had good experiences with Self and OpenSky. They report to all three credit bureaus and help rebuild your score if you pay on time. Avoid Discover secured—they denied me and hurt my credit.
Call your banks and ask about hardship assistance. They might lower your interest rate or help with payments.
Don’t file for bankruptcy. Once your debt is sold to collections, it’s technically not your debt anymore. Focus on getting it removed from your credit report.
Westley said:
Don’t file for bankruptcy. Once your debt is sold to collections, it’s technically not your debt anymore. Focus on getting it removed from your credit report.
How do I do that? Should I dispute it?