| Using a Debt Consolidation Counseling Service |
|
|
|
|
|
Credit Money & Life
Member
Cash: $ 4.85
Posts: 24
Joined: 18 Jun 2010
Location: Dallas, TX
|
|
 |
|
quote:
Originally posted by Stuartthomas
also Debt consolidation program has a positive impact on your credit score as it helps you make regular payments towards your debt.Most debt consolidation companies offer free debt counseling service to debtors willing to consolidate their bills and debts. The counseling session allows you to analyze your situation and discuss your debt relief options with a debt consultant. This is to make sure that you know what's best for you.
You are correct is saying that they do make the payments but wrong in the fact that it positively impacts the credit.
Most creditors record consolidation on a credit report as a TPI(Third Party Intervention which means that you had to pay someone else to pay your bills for you. It will stay on your credit for 7-10 years and be viewed as a "little brother to bankruptcy".
Once you complete Debt Consolidation most creditors will not even allow you to finance a mortgage or refinance. I think the bank that allowed you to do something the quickest was 1.5 years after out of consolidation. Call a bank and tell them that you just finished consolidation and ask them how long it will be before you can finance something.
If you are in trouble with your debts as well then consolidation wont even get you relief on your payments. Its pretty much the same amount but just one payment.
Here are the options you can look at and the credit affects.
1. Bankruptcy - 7-10 years, totally destroys credit, and public record
2. Consolidation - 7-10 years, recorded as (TPI), viewed as "little brother to BK", and little to no relief on payments.
3. Debt settlement - 3-4 years, credit can be recovered after program, some companies will make sure when completed the program that it is recorded as "paid to a zero balance". Reduction in debt and payments.
4. Pay bills - 0 credit affect. This is the best option. If you can do this just fine with no struggle then this is what you should do.
A lot of people are frustrated that their balances never go down. I dont mean to be rude in the next statements. You incurred the debts so you should do everything to pay them off. This is the reason why credit cards are suppose to be used just for emergencies as credit cards are designed to not be paid off.
99% of Debt Settlement companies offer no Attorney Representation in the event you get sued.
Prime Debt Services is the 1% that offers Attorney Representation if you are sued and is an actual Law Firm.
|
Fri Jul 30, 2010 3:20 pm |
|
|
CaliChristian
Full Member
Cash: $ 8.50
Posts: 56
Joined: 29 Jul 2010
Location: California
|
debt settlement is one of the worst options.
Non-Profit credit counseling. Over 20 years experience, we have helped over 200,000 families and individuals become debt free.
Last edited by CaliChristian on Fri Aug 20, 2010 6:42 pm; edited 1 time in total |
|
Fri Jul 30, 2010 7:25 pm |
|
|
Credit Money & Life
Member
Cash: $ 4.85
Posts: 24
Joined: 18 Jun 2010
Location: Dallas, TX
|
Lol to note any option that you go in to take care of debts is going to affect.
A non-profit company gets paid by the credit card companies not the client. So these companies do what is in the best interest of the credit card compines.
99% of Debt Settlement companies offer no Attorney Representation in the event you get sued.
Prime Debt Services is the 1% that offers Attorney Representation if you are sued and is an actual Law Firm.
|
|
Fri Jul 30, 2010 8:27 pm |
|
|
|
