will it hurt me when i am ready in the future to get a credit card. i have 2 good cards with high limits and i just want to consolidate them to one payment but i have bad credit due to medical collections….so now i can keep paying the high interest cards and not get anyway or i can consolidate but then have trouble with getting cards in the future…i just went overboard with them these past couple months because i was home with my new baby and we were short and abused the cards…but like i said my credit is around 600 and the medical collections are huge so on top of me nearly maxing out my cards along with that my score dropped FAST! any recommendations?? i own a house but we’re in the process of trying to sell so i cant do a HE..any other suggestions?? ive tried prosper but no one even glances at mine, i wont get endorsements because my family and friends would be ashamed of me hitting debt so that didnt work?
ok when it comes to debt consolidation companies…?
13
May
fmxkrazyone
May 13, 2010 at 6:38 pm
I think debt consolidation is a waste of time, plus you usually have to pay them a small fee to do it for you. You’re best bet would be to call the credit card companies and either ask them to lower your interest rates, or try to cut a deal with payments. Believe me, they want their money so they are usually willing to work with you. As for the medical bills, you can most definately set up a payment plan, it’s not like they can take back the services they gave to you, so make the credit cards your top priority and then worry about the medical bills later.
PK
May 13, 2010 at 7:10 pm
The debt condsolidation won’t hurt your credit. You already did the most damage by spending out of control and more than your means.
The high interest rates on cards can be triggered by any collections because of cross default. That means that anytime you miss payments on any of your debt, the credit cards can jack up your rates even if you are current on that card.
If you are selling the house, will you have any equity (cash from the sale) that you can use to pay off any of the debt? That may help.
But if you do look for a debt consolidator, PLEASE BE CAREFUL. Alot of these agencies, even if they are advertised as “non-profit”, may be saddling you with additional payments, lengthening your payments or otherwise trying to profit from your situation.
This is not to say that all consolidators are bad, but be selective and check with the better business bureau and federal resources before you sign anything.
sportsstar4u
May 13, 2010 at 8:09 pm
You should call INCharge Debt Solutions. I had an experience like that. They can lump you into one payment for all of your credit card debt. They ask you for about $40/mo for their troubles, but it’s voluntary. Also, they can get your APR down to next to nothing. On one of mine, they got me from 19.9% to 6%. Try them, they are very nice!