debt management

[hpertrain]

So where should I go to get all of my revolving debt under control.

Is there a legit company that could consolidate my credit card debts

all into 1 payment? I spoke to a company today out of Ca. called Coastal

Credit Solutions. I asked the gent I spoke to if being set up under a debt

mgmt. program through them would hurt my credit even more. He said

getting my credit card payments under control by working out a settlement

with them will raise my fico score. He said there may be something on my

report stating I am with them, but a lender could receive a letter from them stating

I am paying or have paid my bills on time. and taht my FICO score going up is really

all that matters in the eyes of potential lenders.

    I'm really confused by all this and need to do something. I am truly drowning in

this debt and want to do the smart thing. I have paid off my wife's medical bills, meet

my mortgage on time, but the credit card debt is killing me. Any advice on any legit

companies I can turn to or what I should do?

[Anonymous]

There is a BIG difference between a CCS (Credit counsoling Service) and a DMS (debt management Service)

A CCS will contact your creditors and get lower rates to allow you to pay them off-

A DMS will allow you to default on all of your accounts and save $ in a pool and offer a lump sum to your creditors one at a time-

I am sure the FICO difference here are obvious-

---

hpertrain wrote:

So where should I go to get all of my revolving debt under control.

Is there a legit company that could consolidate my credit card debts

all into 1 payment? I spoke to a company today out of Ca. called Coastal

Credit Solutions. I asked the gent I spoke to if being set up under a debt

mgmt. program through them would hurt my credit even more. He said

getting my credit card payments under control by working out a settlement

with them will raise my fico score. He said there may be something on my

report stating I am with them, but a lender could receive a letter from them stating

I am paying or have paid my bills on time. and taht my FICO score going up is really

all that matters in the eyes of potential lenders.

    I'm really confused by all this and need to do something. I am truly drowning in

this debt and want to do the smart thing. I have paid off my wife's medical bills, meet

my mortgage on time, but the credit card debt is killing me. Any advice on any legit

companies I can turn to or what I should do?

---

[hpertrain]

Thanks for the response Timothy. So it sounds like the CSS would be better for your

FICO score overall and the way to go. Can you recommend ny particular companies that

are legit? Thanks.

[Anonymous]

I have no experiance with them-

Might want to do a search or wait for more to chime in-

[haulingthescoreup]

You might want to edit your thread title to something like debt management / credit counseling, to catch people's attention. We have some members who were very happy with their programs, and others with some horror stories.

If you go to your original post, click "options" and then "edit", and you can change the title. If you don't do it on the first post, the new title won't show on the main list of threads.

[hpertrain]

Ok will do. I just read one of your earlier posts where you responded to someone

else about this. You mentioned that FICO does not take into account you are in

a CCS program, which is good news.You also mention keeping a card or 2 as the companies

make you close your accounts and by keeping a couple of cards open youcan recover faster.

So it sounds as if I get into a good CCS program it won't harm my fico score any and by paying

down the revolving my score will start to climb. Is taht sound about right?

[Anonymous]

Yep- That is my understanding (and my words)

Keep an eye on them- and open/check your statements-

 
Look for a reputable one - non-profit, good BBB record,

---

hpertrain wrote:

Ok will do. I just read one of your earlier posts where you responded to someone

else about this. You mentioned that FICO does not take into account you are in

a CCS program, which is good news.You also mention keeping a card or 2 as the companies

make you close your accounts and by keeping a couple of cards open youcan recover faster.

So it sounds as if I get into a good CCS program it won't harm my fico score any and by paying

down the revolving my score will start to climb. Is taht sound about right?

---

[fishbjc]

I'm with ClearPoint Financial and have been extremely happy with the service provided.  I just looked at my statement, it's $17/monthly maintenance, but it's negotiable.  I paid $30 to complete the initial paperwork.  It was all done over the phone.

They have a very close relationship with Bank of America.  I have a 4% interest on my cc, and 13% on my LOC.

I did skip one month by accident & they were able to negotiate the removal of the 30 day late.  It's a great feeling to know that no late charges, no overlimit fees, and a good interest rate have come my way.

MyFico states Credit Counseling Service under notes.  Both cc were closed, but was told I could reapply when the program is complete.  MyFico doesn't count it against you either.

Very Important:  Not opening up any new credit while in these programs, it can get you *fired*.