a lot of cc debt..trying to get out of it ...non-profit, debt consolidation,sett? ideas?
I have unfortunately gotten into a credit situation where I have good
credit but have two credit cards which are currently killing me and it
won't be long before I have quite bad credit. Namely, a Visa card with
ridiculous interest rates (because I apparently was late on two
payments the percentage rate went from 11.9% to 25%)- Trying to dispute
it did nothing for me. I am, of course concerned about my credit as
i've spent years making it good. I already have a large outstanding
(maxed out) card from my credit union so I can't get another loan from
them to pay off the high percentage card until that is paid off- of
which I have no $$$- so its a big catch-22.
I know there are a LOT of "non-profit" credit consolidation and help
services out there but I'm thinking a lot of them are a scam and will
cost me a ton of upfront money and perhaps do little/nothing for me.
Are there any actual reputable ones anyone can recommend? Government
sponsored perhaps? If they all cost money what should they cost?
Whats the rate for a legitimate non-profit these days to consolidate or
help me out of my debt?
You don't say how much debt you have, esp how much debt vs income.
If you just have 2 credit cards, and you can make more than the monthly
payment, you are probably better off working with the credit card
companies yourself. Contact them, try to work out a payment
arrangement at a lower interest rate, Most of them are amenable to
offering a lower interest rate if you can offer a fixed payment. Be
civil.
However if there are several credit cards and a large amount of money
and you are having a hard time making the minimum payments, a consumer
credit service may be of assistance. They will meet with you, go over
your bills and income, set up a budget and work with your creditors to
get a lower interest rate (generally 9.9%), If you agree to work with
them they will set up an autodraft from your checking account each
mponth for x amount and distribute the $ to the various creditors. This
really only works if ALL of the creditors agree to go along
with the proposal from the consumer credit service,
There are several reputable non profit services. Consumer Credit
Counseling Services is probably the best known but i am sure there are
quite a few others.
DO NOT EVER (caps intended) get involved with a debt settlement company
or any service which asks you for money up front.
There are a lot of people here who will tell you to just go ahead and
file bankruptcy. Think long and hard before you take that route,
bankruptcy affects so much more than just you credit, for a long time.