I have about $8000 in CC debt and I have not been able in to make my payments in over a year due to lack of work and the amount of money I make. Can I still use a credit counseling service or would bankrupcy be the better choice? One of my CC is past collection and being taken to court, would counseling help or is bankrupcy the only choice?
2007-02-26 12:04:16 · 6 answers · asked by jessica l 1 in Business & Finance ➔ Credit
You can always look into a Debt Managment Type program. Check with the NFCC, National Foundation of Credit Counseling for an agency that is certified. Additonally you want to make sure they are registered with the BBB and certified for debt managment in your state. The biggest thing is not to be scammed by a debt relief agency/debt consolidation agency who makes promises of settling the debt for you.
You may not qualify for a debt management program, but they should all provide an assessment for free to let you know. Basically, to qualify for a debt management, you need to be able to take care of your priorities (housing, essential utilities, food) and also to make a payment to the debt managment program.
Most will work with debts even in collections. The problem is how far in the legal process this has taken. You may want to repsond to the summons and complaint and try to set up a payment plan, rather than be granted a default judgement and then be garnished. Once you have a payment arrangment to avoid garnishment, the credit counselor should be able to work with this.
Bankruptcy is also an option for people, but with only 8k in debt, I'd hustle and work this out on your own. I hope this helps, I with you the best.
2007-02-26 13:03:24 · answer #1 · answered by Ks62ladybugs 2 · 0⤊ 0⤋
yes, you can get debt conseling:
Credit Counseling Programs
When you are stuck in debt, consider all the available options. You will need to work closely with experts who will provide right guidance to clear off your debts. Credit counseling agency is one such set of experts, equipped to fight debt. These
2007-02-26 21:24:33 · answer #2 · answered by hendy h 2 · 0⤊ 0⤋
Yes you can use a credit counseling service. Do whatever you can to stay out of bankruptcy. Counseling might be able to get you out of court.
Once you declare bankruptcy, it will ALWAYS be on your record. Normally, items fall off after 7 years. But bank are still able to see them.
2007-02-26 12:42:40 · answer #3 · answered by sven_kirk 2 · 0⤊ 1⤋
Maybe you should look into getting a debt consolidation loan. Your rtaes will be lower, and so will be your payments. You can comparison-shop at the below website and see what you can get (home ownership is not required)
2007-02-26 13:13:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You can, but you have to make money to pay back that debt and if you miss a payment then you will mess up your credit even more, bankruptcy would be your best, but i don't think that you can file for bankruptcy with that amount. check up on it. you can call clarion credit they worked for me, and my debt was paid off in3 years.
2007-02-26 13:00:07 · answer #5 · answered by Nattiedred 3 · 0⤊ 0⤋
I have placed this in the source box. There is a wealth of information there and a great free debt management software program. I bookmarked the site as I return to it often for the advice it offers. I hope this helps you.
2007-02-26 12:12:50 · answer #6 · answered by Anonymous · 0⤊ 1⤋