Debt Relief Program

[mike2018]

I am starting to freak out about my credit cards and was wondering if using a credit relief company like National Debt Relief or soemthing on like half my cards.  I want to keep some cards but I feel I have too many.

A little back story I had a bankruptcy and have been building my credit back to 650 as it is today.  I got stuck at 650 so in the name of getting a higher credit score, I got more cards.  I did the keep them at 20% at statement date etc but times got tough and I had to lean on these card to get my family through. 

My score still hasn't budged form 650 so it was all for nothing.  

I don't know much about these relief companies and if it would hurt my credit too much.  I also am hoping to be buying a house this time next year as well.

I really am worried.  All my cards are at limit or over and half are late (not 30 days).

I need some real help. 

Sorry for such a crappy post but I just don't know what to do to get back in line.  

edit for spelling.

[mfinsmi1]

@mike2018 i dont have exp. w/ debt relief but i think a good idea is to list out all your credit cards and balances you owe - you need to make a plan to start bringing ALL accounts current even if its just with a minimum payment. Then you need to focus on one card at a time and get that debt down. I assume your seeking debt relief to allievate some high balances you have , but you can call creditors themself and see if they are willing to do anything for u . At least its worth it to try to avoid spending more money on some marketed debt relief program 

[mike2018]

I see, so pick a card and I guess pay weekly until its paid off while paying the minimums on the others?  I can see that working.  

[coldfusion]

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@mike2018 wrote:

I see, so pick a card and I guess pay weekly until its paid off while paying the minimums on the others?  I can see that working.  

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You want to research the Snowball technique.   TL;DR you make mininum or just-above payments across all but 1 of your cards (either your highest-interest, lowest balance, or some other rational criteria) and attack that 1 card with everything else you have left.  Once that card is paid off you sockdrawer it and repeat the process with the next card. 

In some cases you can also consider contacting the issuer themselves to see if they have a relief program where you negotiate a payment structure with reduced interest rate, but in many cases the end result is that when the debt is paid the card will be closed. 

You need to be careful with credit repair services as in many cases they're more interested in squeezing money out of you than in ensuring your debts get repaid and the techniques they use (oftentimes by having you withold payment to trigger account chargeoffs and then they swoop in to negotiate settlements)wreck your credit.  Advocacy here of such services risks a TOS violation. 

[FireMedic1]

Welcome to the forums @mike2018 

If you like. Head on over to the rebuilding your credit sub-forum. Start a rebuild thread.

List out your cards as:

Creditor name/Credit Line/ Balance/APR

Bunch of us will set up a plan to get you back on track.

[CaptinVantage]

Many years ago I was able to make all my payments but they were killing me and my budget but I was never late and wanted to keep it that way. And I did a  debt counciling and management plan with incharge debt solutions. They do not do debt relief settlements rather they will work with the issuers to lower your interest and monthly payments and give you a 3-5 year pay off plan.  You will not default on anything and if you are late after 3 payments with them they will reage your account to current and will negotiate so you will not destroy your credit but they will close any card you include and you are not supposed to open new credit while on the plan but if you are current now you will stay current and by the time you complete the plan your credit score will most likely rise during that time as you are paying your obligations in full and on time . They are nonprofit but do charge a monthly fee of 25-50 depending on how much you owe but I do know when I did one card interest rate went from 25 to 6.9 . It's completely legit . You can start the process online and someone will call you and go over it all with you . Might be your best option to get back on track and save your credit and also free up some capital monthly for you. If you are stretched thin this may give you relief. Also if you want you can not include an account . But they will advise against that . Worth a try though.  Hope it helps if you go that route  Just google incharge debt solutions. 

[SouthJamaica]

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@mike2018 wrote:

I am starting to freak out about my credit cards and was wondering if using a credit relief company like National Debt Relief or soemthing on like half my cards.  I want to keep some cards but I feel I have too many.

A little back story I had a bankruptcy and have been building my credit back to 650 as it is today.  I got stuck at 650 so in the name of getting a higher credit score, I got more cards.  I did the keep them at 20% at statement date etc but times got tough and I had to lean on these card to get my family through. 

My score still hasn't budged form 650 so it was all for nothing.  

I don't know much about these relief companies and if it would hurt my credit too much.  I also am hoping to be buying a house this time next year as well.

I really am worried.  All my cards are at limit or over and half are late (not 30 days).

I need some real help. 

Sorry for such a crappy post but I just don't know what to do to get back in line.  

edit for spelling.

---

I agree with @coldfusion that you should try the snowball method.
1. Stop using cards.
2. Pay off smallest balance first, then next smallest, and so on.
3. On other cards pay minimum + something each month.
As each balance turns to zero, that will free up your remaining monthly cash to apply to the next smallest balance.