cancel
Showing results for 
Search instead for 
Did you mean: 

Debt consolidation question

tag
Deeyarht948
Contributor

Debt consolidation question

Hello everyone, I guess I'm falling on hard times as my credit utilization is very high at 92%. I have about seven credit cards that are maxed out and I'm paying over $1300 a month only in minimum payments. I had a call from this company called cash keeper financial and they said that I was approved for a debt consolidation program that can erase my debts in as little as 52 months pay in about 465 a month but I have a question will my cards report late to the bureaus? he said your credit will take a hit within the first three months, but should rebound within a year and will be qualifiable again for any credit or loans again. Do you guys have any experience of doing this? Have any of you ever done this? I need some opinions please thank you all

Message 1 of 10
9 REPLIES 9
Deeyarht948
Contributor

Re: Debt consolidation question

Can I get an opinion from somebody who is experienced? please I need help thank you all

Message 2 of 10
Creditwiser
Valued Contributor

Re: Debt consolidation question


@Deeyarht948 wrote:

Hello everyone, I guess I'm falling on hard times as my credit utilization is very high at 92%. I have about seven credit cards that are maxed out and I'm paying over $1300 a month only in minimum payments. I had a call from this company called cash keeper financial and they said that I was approved for a debt consolidation program that can erase my debts in as little as 52 months pay in about 465 a month but I have a question will my cards report late to the bureaus? he said your credit will take a hit within the first three months, but should rebound within a year and will be qualifiable again for any credit or loans again. Do you guys have any experience of doing this? Have any of you ever done this? I need some opinions please thank you all


It sounds sketchy to me. Have you done any research on this company?  What is your overall credit profile?  Lates? Baddies? . I ask to see if perhaps you have better options that will not have a negative effect on your credit. This seems to be a negotiate for less plan to which I'm not a fan. I don't have any experience with this type of consolidation. Hopefully somebody will chime in with some strong reasons and advice against it.

NFCU Visa 30k | NFCU Platinum 30k | Cap1 QS 12K | Cap1 QS 11.5K | Barclay MC 9k | Delta Gold Amex 30K | Discover IT 14K | CFNA FS 3200 | CareCredit 20k| Paypal Credit 5k | 1 months until BK7 disappears |
( EE from TU & EX )
Message 3 of 10
JoeRockhead
Senior Contributor

Re: Debt consolidation question

Cash Keeper isn't a lender, they're another third party loan referral service looking to make a commission off people's misfortunes.

 

Their own disclaimer states you'll be subject to interest rates of up to 36% plus charged additional loan origination fees up to 5% of the loan amount. Can't say I'd recommend going this route.

 

Can you list the cards you have and what the CLs and balances are for each one?

Message 4 of 10
FireMedic1
Community Leader
Mega Contributor

Re: Debt consolidation question

They only been open a year according to the BBB. All contact is 1 person.

https://www.bbb.org/us/ca/costa-mesa/profile/debt-consolidation-services/cash-keeper-financial-1126-... 

How much debt you talking about. If it has to come down to a consolidation loan. Theres bigger names out there like Lending Club, Best Egg, Prosper,ect


Message 5 of 10
Deeyarht948
Contributor

Re: Debt consolidation question

I have about two cards with a 10,000+ balance and one card was it with a 7000 balance and a Discover and a capital one both of them 2000+ balance and a credit one with about $1000 balance and I CTI bank custom cash card with about $1500 balance.  I already signed some documents online but they said that I can cancel at any time and that's what I'm gonna do today. I have not made my first payment yet anyway so it shouldn't matter I don't think.

Message 6 of 10
SouthJamaica
Mega Contributor

Re: Debt consolidation question


@Deeyarht948 wrote:

Hello everyone, I guess I'm falling on hard times as my credit utilization is very high at 92%. I have about seven credit cards that are maxed out and I'm paying over $1300 a month only in minimum payments. I had a call from this company called cash keeper financial and they said that I was approved for a debt consolidation program that can erase my debts in as little as 52 months pay in about 465 a month but I have a question will my cards report late to the bureaus? he said your credit will take a hit within the first three months, but should rebound within a year and will be qualifiable again for any credit or loans again. Do you guys have any experience of doing this? Have any of you ever done this? I need some opinions please thank you all


I don't think it would be a good idea.

 

IMHO you should just try to get some kind of second job, part time, and apply whatever you get from that towards your credit card balances, using 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.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 7 of 10
Deeyarht948
Contributor

Re: Debt consolidation question

That's a good idea. I think I'm gonna do that. pay off the small balances first and then take care of the big ones. 

Message 8 of 10
JoeRockhead
Senior Contributor

Re: Debt consolidation question

In addition to what @SouthJamaica suggested, I'd add that it wont cost you anything to contact your issuers and ask for an interest rate reduction as well, all they could do is tell you no, and every little bit you can save in interest can add up. 

Message 9 of 10
Deeyarht948
Contributor

Re: Debt consolidation question

SouthJamaica I really like your idea I'm gonna try it

Message 10 of 10
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.