Free Consumer Credit Counseling

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My wife and I went through the stack of old bills we had in the closet. Some of them are 5 years old and get more recent. We sorted out all the duplicates and added them up. Combined we have a total of roughly 8000 dollars. Take in mind NONE of these are credit card bills. Neither of us have had one. These are made up of mostly old medical bills and old utility bills from years past before we met. We also have a combined total of 4000 in student loans where we both took a semester in a nursing school. I know that you cannot get help with student loans. The goal is to be able to get our credit good enough to get a car loan and get an apartment without cosigner in the quickest timeframe possible. We are living with her parents and need our own place soon. Will our credit clear up if we just pay the bills outright? Or will it be better to use credit counseling or bankruptcy? Bottom line is the way to raise our credit score the fastest is what we want to choose. PLEASE HELP!

Best Answer

Honestly...it does not really benefit you to pay debt that is already listed as negative on your credit report. Although the debt is old, you are still legally responsible for it. Ch. 7 bankruptcy may be an option for you as it will erase the negative charged off debt and help with you debt to income ratio. Despite what some of the responders may say, you can recover from bankruptcy. It is possible and easy to reestablish and obtain credit after bankruptcy. Hoped this helped.

I am in credit counseling in canada. I am in a position to pay off my credit counseling and I am wondering if I should pay it through the credit counseling or pay the credit cards directly. ( I prefer to pay them directly as it is a large amount of money)

Best Answer

As long as you are in the service, why not just knock it out with them? Is there a reason not to? I guess the way I see it is if you have already trusted them with your reputation (to help you rebuild it) and with as much money as you have already paid the service to redistribute for you...and they haven't betrayed you...then you shouldn't worry about a larger amount at one time. If you are specially concerned, do something official like a certified check, an affidavit, or whatever, stating that this amount is enough to complete your payments and ask for documentation where the money goes (which they do anyway, I'm sure.) This way, far as I know you just pay one person, or whatever...and you are done. Will they close accts for you too? If you wanted this, or if it was in the arrangement for them to shut it all down once your debt was gone, I would let em handle it. In a month or so, call all of your creditors and make sure that your business with them is over. Way to go! You didn't rob a bank or anything did you? ahhhaha!!

How long after my debt has been paid will the creditor remain on my credit report? Will it automatically update to being current and paid? How long will the phrase, "managed by a consumer credit agency" appear on my credit report after my debt has been paid thru a debt counseling program?

Best Answer

it stays on there for up to 7 years after its been paid.. and is removed after the 7 years are up..

I want to refinance my home and was told that credit counseling could be problem. I thought credit counseling would be a good thing because I'm trying to get bills paid off. The credit counseling company did not tell me that being enrolled in credit counseling would have a negative effect on my credit. How can I correct this? After talking with my mortgage broker he explained to me that credit counseling companies don't tell you that being in credit counseling could be a problem. Credit counseling companies just want your money. HELP...........

Best Answer

Credit counseling itself is not the problem. The way the mortgage company is looking at it is that you got your finances to the state that you needed help. From your standpoint, you get your bills back on track and paid. That's good! It's much better than defaults, late pays, or a bankruptcy would look on your credit. That mortgage broker would have just as much problem with any of those. Potential credit lenders view your record for how you have dealt with credit in the past. So to them, any indication that you got in over your head is bad. Once you get your finances in shape and you no longer need the credit counseling company, the fact that you were in counseling does remain in your record but the longer you maintain a good record after that WILL have a bearing on how credit lenders view you as a potential customer. Good luck!

I have an 2 yr ARM. I got this invatation to Re-Fi from our mortgage company which I want to do. My goal while in this 2 yr arm was to clean up some blemishes on my credit and then re-fi close to the 2 yr mark. Well, I decided to do the re-fi earlier then the 2 yr mark however, my credit actually plummeted. So, my question here is what has peoples experience been with going into credit counseling? Was it helpful? Did it hurt your credit or help? I know there are so many fraudulant companies out there does anyone have any tips on choosing one or can they reccomend one? The family has cut back as far as we - we have to have basic cable - we live in where we live in Alaska you get no tv without it. No other luxury than that. My internet is paid by the company I work for. can and still remain sane.

Best Answer

TG, I know it is expensive there in Alaska. Did you know that if you have lived there 3 yrs, you are eligible for a state "stipend" each year? A relative who lives there got $1,600 this year. Also, beware because though some people (such as the first answer given to you) offer excellent advice, watch out for anyone who doesn't write in good English- they may be and probably are scammers outside the U.S. Good Luck ! I quite understand your predicament. Have you tried to consolidate? AAA Financial Services has a great deal now re paying off pesky bills. 1.9 % til March of next yr. Ph is 800-801-6996. That might help for a while to put more of your payments into principal and give you only one payment in addition to your house. Interests rates are stabilizing now so the ARM shouldn't go up now for a while, so perhaps you have more time to select a mortgage provider carefully.