Debt Consolidation...

[speed_racer]

Well, I was just curious if anyone here has ever worked with one of these debt consolidation firms and what their success was...

 

Basically, I'm 21, and at 18 I destroyed my credit, and have just a few collections tagging my credit, which, my cred sucks, for the record...

 

I know I could go, run my credit, and contact all ppl who I owe, and work a payment schedule out, but I'm already so strapped w/my monthly's that I think that would overschedule my finances, so I'm considering contacting a credit counselor/consolidator....

 

Any input/ advice/ knowledge would be appreciated....

[Mitch]

go see a credit counselor, check the government websites for one. Listen to what he has to say and don't listen to anyone on a forum, to include me.

 

Credit is serious, take care of it... don't stress too much right now, it can be fixed.

[91mj97tj]

I think if you can afford to get a signature loan at some Credit Union pay off all the collections and then PAY THE SIGNATURE ON TIME FOR HOWEVER LONG THE TERM!!! Then wait seven years from when had those accounts and you will have good credit again but you will have to rebuild. I did this when I was 18 as well and I work in finance. Credit counselors actually hurt your credit FYI. Go to annualcreditreport.com and get all three of your reports for free (one free a year). Then dispute the collection accounts after you pay them off. 9 times out of ten they will delete them. But hey choose not to listen me. I destroyed my credit when I was 19 started over and now I am 24 and can get approved for anything.

[Eagle]

I am very skeptical of for-hire "credit counselors." They charge you a fee for doing what you can do for nothing. If you are already over-stretched, how does it help to incur yet another debt?

[speed_racer]

OH, i am NOT looking to pay someone to help me here.

 

If it came to that, I'd find a debt consolidation loan and attack it on my own.

 

Any resources for free credit counselors anyone?!

 

And anyone had good experience doing a debt consolidation loan?!

[pingpong]

Normally debt consillidation loans are hard to get with damaged credit, unless you own a house, and then they rape you on the intrest rates. Which short term may seem like you are paying less, but long term your credit is still damaged for 7yrs, sometimes 10.

 

 

I persoanlly went through a real messy divorce 13 yrs ago... basically I got stuck with all the bills, ETS'd from the military, and moved back stateside all within 6 Months. My credit got so screwed.. the bank wouldn't let me borrow a glass of water :eek: After I negotiated with the creditors, and they rdeuced the intrest rate, and removed the late fees and over the limit fees, I was able to pay back roughly 10K on 24 K worth of debt. My credit still isnt perfect, but after paying off the debt , and paying my bills on time for the last 8 yrs, I can pretty much just go sign for whatever I want.

 

The only advice I would give anyone is use your credit wisely... and make sure that "whatchamacallit" is really worth it when you figure in intrest.

[kazzx]

I did the same thing and it has taken me many years to level it off. Wrecked it from 18-20, and at 21 couldnt even get a bank to even talk to me about lending. I started realizing, at 26, that it wasnt just going to go away, that something needed to be done. Now at 29 I finally got it back in the black enough where I am able to buy a house without having a cosigner or having to use one of those shady mortage companies.

 

My only suggestion would be FIX IT EARLY. The longer you wait, the harder it will be. Credit is so important, employers are even looking at it more closely in the interview process. I doesnt matter what means you use to get back n track, do it and stick with it.