Can a credit counseling service help me with credit card debt or hurt me?

Question

We have 3 credit cards, all maxed to and over the limit. I am consulting a credit counseling service but my husband doesn't want it to ruin our credit. I personally think it will get us out of debt A LOT quicker and we're not filing bankruptcy. It may give us a blemish on our credit. But I think it's worth it.

Answer 1

Your credit started being negatively affected the month your balance was more than half your limit on your cards.  As your balances got higher and your available credit was lower your credit began to get worse.  To not see your credit score totally tank you will need to pay enough on all three accounts to bring the balances to less than 50% of your limits.  If you are not able to do that ruining your credit will be the least of your problems.  Your credit card companies are probrobly charging you late and over limit fees as well as interest every month and so what ever the payment you're making, it's probrobly not enough.  Ask your creditors which debt repayment program they work with and they will give you a referral to a legit counseling agency.  Also make sure that agency is licensed as a budget planner if your state requires it like NY.  Most of these agencies have set policies already established with lenders to do things like take a reduced payment, reduce or stop interest and fees so you can realistically pay off the debts.  Your credit will recover it will just take time.  Good luck

Answer 2

"Consumer Credit Counseling Service" is a legit non-profit one. Check with your local Better Business Bureau for reports on any before you sign up with them. Be very careful, the IRS has just filed against many of the false ones.  If you can do it on your own, tight budgeting, self discipline and maybe even selling unnecessary stuff and getting another job to supplement payments can be of more help.  If you lack high level of discipline on you own, the CCCS is the way to go.  It will not be fun, but it will help you work toward improving your situation.

Answer 3

It will put a little blemish on your credit but it will not affect buying a car or house. If you decide later to have another credit card, the creditors just won't give you as high of a credit line. I recommend trying that instead of filing bankruptcy. Credit counseling will go on your credit report under being manages by cccs and will fall off after 7 years. I have seen bankruptcy on peoples credit report that was 3 times as old.

Answer 4

it's not worth it !! they will ruin your credit