I have about 65K in credit card and personal loans debt. I make 110K a year. I wasn't approved for a personal loan, but they offered another program where I pay roughtly 1000 a month, and they stated I would be out of debt in 48 months. I'm paying roughtly about 2500 a month in just minimums. Has anyone else used this program? How bad does it affect your credit?
I am not familiar with these folks at all, but the math tells you all you need to know. You owe ~65K, they say you pay ~48K and you are out of debt. That means someone that you owe is going to get less then what is owed to them, and this will most definately have a negative effect on your credit. Maybe its not as bad as a bankruptsy or burying your head in the sand, but I would venture a guess that your scores are not staying anywhere near where they are.
If I were you, I would consider reaching out to your creditors and attempting to negotiate some resuced interest to help you get to a better place. I have heard of many folks working with Discover and others to help them knock a chunk out and get to a better spot.
Debt management is one of the absolute last resorts I would consider personally.
I agree with what's been said. When I saw the debt number I thought that's BK territory.
Maybe try to find a .. not sure what the right term for it is.. debt coach? Someone to help you break everything down, structure and strategize, and setup a plan. Would be more work for you, but better for long-term success. Someone to work with you, budget, work on it, Instead of those orgs that you pay that tank your credit (usually by asking less of creditors/not paying and getting lates added to your file/ or other tactics).
The company is actually Freedom Debt Relief. They will have me out of debt in 4 years or less. I don't want to deal with the creditors myself. I don't care about my credit anymore, I just want the debt gone as soon as possible. Chapter 13 didn't make since the trustee could raise my monthly payment if I made more money. Plus, I don't need another BK on my credit for 7 years. My BK7 will be gone in 4 years. I make 110k a year and will probably be making 140k or more in less than a year. My house will be paid off in 8 years and my car will be paid off in less than a year. I have another car that we owe nothing on it with only 60k miles on it. I don't want another car payment for 10 years (I've worked from home since 2012 and my SUV has low miles). I'm just gonna keep one mayor credit card and pay on it monthly. I just got in with Navy Federal finally (had to wait almost 2 years to get my Grand Father's military records from the National Archive). Once I'm out of debt, I'll hire a credit repair company to clean up my credit. Also, my BK7 will finally be off my credit reports in late 2016/early 2017). I'll get one credit card from Navy and that's it. I don't want to end up in this mess again. If I need something, I'll save for it. I don't want to owe anybody any money or pay interest to any creditor. I need to live within my means each month and pay off the card I do have each month.