i have tured all of my bad credit over to a debt managment firm will this help or hurt my credit score?

Answer 1

This may not hurt your credit and might actually help, but it will hurt when you try to finance something. When a future creditor looks at your report and sees credit counseling, they will assume that you don't know how to handle your debts and need to hire a company to make sure you pay your bills.

Answer 2

15 yrs debt mgmt co. When going through a debt mgt co, usually in the beginning 2-3 months of the program you may recv some derogatory marks on your credit report. it taked the credit companies that long to approve the new pymnt plans through their systems. In the mean time you may recv a late fee or 2. Also remember that some debt mnmgt companies do not report you to the credit bureaus. The creditor does this. Once all is approved and your deposits are made on time to the debt co., most creditors will re-age or bring your acct current. As long as you continue to pay on time consecutive pymts your credit score will continue to improve It's not going to be easy all the time, but if you stick to it, you will be more at ease. Remember, you didnt get in debt overnight and you will not get out overnight. Good Luck, and Happy Holidays!!

Answer 3

Make sure you read the fine print. I had a bad experience with a debt management company in the past. If you are going to send payments to them, make sure it's going to go towards paying down your debt and not towards a retainer or non-profit donation.

Personally I think you should try to take care of your bad credit on your own. You can do what the debt management company will do yourself. Check out http://www.creditboards.com for some great information on getting back on your feet.

Good Luck.

Answer 4

I don't know about your FICO score, but it will be considered a bankruptcy or a charge-off; depending on what type of debt management company you are working with.