Credit Help

[bdcred]

Hello,

I had a question, I currently have 3 credit cards that are past due. I have heard that debt relief companies, if used, can also damage your credit. Is this true? Would it be worth it for me to contact a company or should I try to get out of debt on my own, which will be extremely tough. Are there any companies that anyone would suggest? Please let me know and I thank you for your time.

 

[cmorris]

Most of these companies will take your money and run. Read them as "SCAM." And a notation, if done correctly, shows you doing a consolidation. This is at least as bad as a BK. Even the FTC is against using any of these companies.

I suggest you calling/writing your credit card companies and asking for a hardship program.

 

[kyle_kyle_p]

reply

Florida
Im not a lawyer or banker by any means, just from personal experience. I actually went to my bank and had them give me a loan and closed all of my cc's and even though it was a big loan, the money that i saved in interest alone was nice to have again. and that loan's already paid off becuase the interest isn't like it is on a cc, let alone 3 of them. something to think about

 

[cmorris]

It *may* be an option for the OP, but a couple things have to be considered:

What do the credit reports look like? If the lates are showing, the score will be significantly lowered. This will result in either the loan being denied or the interest rate increased.

With many bank loans, you have to have collateral, especially if credit is not stellar. Then the OP would be trading unsecured debt for secured debt. This is not a problem if the loan is repayed. However, if the loan is defaulted on, s/he loses property.