Does Debt Relief Increase our credit score?

[Anonymous]

My husband and I are getting ready to purchase our first home. We both have a few LITTLE things on our credit. If we going though a Debt Relief company to take care of all the Little things will that help our scores? I have heard and will and that it won't. Our goal is 2 years! The little things are mostly medical on both of our reports. Please help!

[Anonymous]

What exactly is debt relief?

[Anonymous]

To my understanding one works with a debt relief company and the company works with your creditors to get the debt paid. The time frame range from 1- 5 years and you make 1 payment a month that is divided up between all your debt.

[Anonymous]

montana,

MOST of those debt relief companies can't do anything for you, that you can't do for yourself, with a little education through this forum. I would suggest you educate yourself a little more on the possibilities of Self-Help, before hiring a Debt Relief Company.  It's not as difficult as you might think..

[Anonymous]

Ok- what I understand is that debt relief companies only deal with unsecured credit - like credit cards and unsecured loans. I'm not sure they can do much with medical collections.

My advice is call each of the ORIGINAL creditors you owe - not the collection agencies!!!!! - and offer to pay the debt in full - use a PFD if ay all possible.

You will likely be required to pay all collections before a mortgage lender will fund a purchase, so working out payment plans on these may not benefit you.

Good luck!

[Anonymous]

DO NOT use a Debt Relief agency.......You can go to a Certified Credit Counselor (for FREE) who can help you figure out your debts and guide you in the right direction (tell you how to best negotiate better interest rates with creditors etc.)

Debt Relief agencies for a fee will go to creditors and negotiate a pay off amount less than what you owe and destroy your credit.

[Bethm1026]

I spoke to our mortgage guy yesterday afternoon about this exact thing.

As far as medical collections go............Leave them alone, he said everyone has those so those are not a big thing for mortgages.

Also, I have 1 Capital One account that is KILLING me on a mortgage. I'm trying to figure out that now.

He said debt relief is TERRIBLE & it is hardly to none to get an honest one.

I told him about this site and he said I'm doing the right thing already.

Just my honest opinion.

Beth    

[Anonymous]

Now I know I will not go with Debt relief.

Thanks for everyone's help. Good luck to all....

Sherrie