Rather than file bankruptcy, we are considering a debt consolidation service.
The company can reduce current intrest rates from 22.9% to 31.9% down to between 6% -10%......this is good as it will allow us to pay off the debts in 40 months versus 10 years.
The creditors to be effected would be One Main Financial, Key Bank, Blaze, First savings, Merrick bank, and Capital One. Not all of our accounts qualify for the program because they are less than 9 months old and have balances of less than $200.
The quoted monthly payment would be around $594 per month. Which I figure would save us about $200 in monthly payments.
The concerns are:
1. The accounts will be closed but will continue to report monthly payments;
2. We cannot apply for any new credit for the time we are in the program;
3. What effect will this have on some of our Capital One accounts that do not qualify with small balances and credit lines? Will we still be eligible for CLI with our other Capital One accounts?
4. How will this effect our FICO
Any thoughts?
