Credit Counseling for PERFECT payment history???

[redwalker2929]

Hello, I currently have 41.5K worth the CC debt between 12 credit cards. APR's averaging between 15%-22% with the exception of my credit union at 7%. I am currently a nursing student who will graduate and begin working in DEC 2015 with a take home pay of 40K. I have perfect payment history with the only negative being 99% credit utilization which lowered my FICO to 620. I spoke with credit counseling company that is highly reputable and is recommended through governmental websites. They propose that I will save $360.00 in interest each month and my payments will be $800 for 5 years and ill be CC debt free. I'm opting for this option due to needing good credit in 5 years(partner and my income will be 150-220K annually) but I have very little money until we both finish our degrees. My goal is for both of us to be debt free in 5 years and moving into a home. Please help me by answering these questions:

1. Has anyone recently went through such a program and was the "credit counseling" comment removed after reaching zero balance?

2. After successfully completing the program and paying off the debt in its entirety, has anyone successfully received new credit from the same CC company that was included in the counseling?

3. Are the accounts usually marked closed my consumer or closed by credit granter?

4. Any other comments from members who have recently gone through this process?

[StartingOver10]

redwalker, a perfect payment history will mean nothing once you decide to go to credit counseling.  It will not remain perfect. The credit counseling will act as an informal bankruptcy. It will be similar to a Ch 13 but without the protection of the BK court.

The credit counseling works for the creditors that have a contract with the credit counseling agency. The credit couseling agency does NOT have contracts with every creditor.

Your report will reflect payments that are not made in full and in time once you agree to this program. So you will have lates. Part of the strategy of these types of programs, including the one that is nationally recognized, is to stop making payments on your accounts until the creditor and the agency can come up with a plan. Those missed payments will show on your report. In the meantime you are making the payment to the agency. They are collecting your funds. They are just not distributing your funds to the creditors until the contracts are worked out and there is enough cushion in the account, after their fees, to make the payments agreed upon. This will take longer than 30 days and might take much longer.

Consider going to DaveRamsey.com first and trying the snowball method before you totally trash your hard earned credit.

If you really need to do this credit couseling, then just do the Ch 13. At least then you have court protection and can recover more quicky. I don't recommend Ch 13 lightly at all.

[StartingOver10]

Found a thread you should read about DMPs.  They are really, really, really a bad idea.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Debt-management-programs-questions/td-p/30973...