Debt, collections and credit card question?

I have some bills that need payed off and I have one credit card. My question is if I go or contact a Credit counselor or Debt help business(Careone credit,debt relief agency) will they freeze my credit card account or put it on hold? My debt situation is not bad, but I%26#039;ve heard that if you seek help through a business that specializes in credit card debt or collections, they will freeze all of your credit cards. I am slowly building up my credit and I would hate to have them take my card away. Is this true? Any one that has or has had this problem or knows the facts please let me know some options.....Thanks!!!!

Debt, collections and credit card question?

USually use a CC or Debt business when your bills are too much for you to take care of; and in that case, the last thing you need to do is keep charging; and in many cases, they will contact the CC company to get interest charges adjusted. IN all of these cases, you%26#039;ll probably use the use of the card

Debt, collections and credit card question?

I%26#039;m going through the EXACT same thing. The credit counseling servies i am using DO freeze/close you CC. They don%26#039;t want you to go into more debt. This agency only allows 1 CC outside the program for your use. If you want to consolidate other debt you can and keep just one CC to keep your credit going.

In my situation i am keeping my car loans open and making automatic payments from my checking each month.

Debt, collections and credit card question?

Most of the Debt solution places make you stop using the cards or cancel the accounts until everything is paid off. What%26#039;s the point of trying to get out of debt if you%26#039;re running up more bills?

You said your debt was not bad at this point so I%26#039;m wondering why you are going to pay a debt solution place to get you out of debt? They do charge you a fee.

Why not do this yourself and save yourself some money?

First, stop charging stuff on the cards that you can%26#039;t pay for when the bill comes. Take the card that has the highest interest rate and start paying it off. Always pay MORE than the minimum payment. You%26#039;re throwing away a lot of money by keeping those balances high and paying interest. Once you have the card with the highest interest rate paid in full, increase the amount you%26#039;re paying on the next one until it%26#039;s paid in full.

Once you have them all paid off, don%26#039;t use them except for things you would ordinarily buy anyway and pay them off when the bill comes.

Debt, collections and credit card question?

If you have a company liked CCCS or Debt Solutions assist you, it will apprear on your credit report as a Chapter 13 Bankruptcy. It happened to my husband before we were married. Figure out a way to pay off the debt yourself without their help. Good Luck

Also, check out Dave Ramsey on the radio or daveramsey.com. He%26#039;s a brilliant financial adviser.

Debt, collections and credit card question?

You can clean this mess up all by yourself if you know what you are doing. Get a copy of the book below (@ library, website, bookstore). We follow the plan in the book. It has helped us clean up tons of debt %26amp; get a workable budget/financial plan.

Btw, most of those debt mgmt places are scams %26amp; even if you find one that isn%26#039;t, you will be treated the same as if you filed a Ch 13 bankruptcy if you ever try to get a mortgage.

Debt, collections and credit card question?

Well first of all some people will tell you some debt management companies are non-profit; they all make a profit. Read wikipedia about the credit counseling industry in relation to their %26quot;non-profit%26quot; status. Most of the debt management services work for the benefit of the creditor, so they creditor pays them. Do some homework, price out how much you actually end up paying in total to rid your debt with certain programs. And yes, most times they freeze your credit card or cancel it. There are many credit agencies that will give you a new card though, just look online.

Get some education through wikipedia and other sources. usfmgroup.com/articles.php has some decent articles as well.

Your main options are: credit counseling, debt consolidation and debt settlement.

Choose your option carefully and really ask yourself how bad am I in debt? You can email me if you have more questions.