Recommendations for Debt Management Companies?

Question

I've done SOME research but I'm still unsure..
I've visited with one company...you completely stop making payments to your creditors. After 3 months, they(credit counselors) step in working with the creditors to lower your payments and interest rate. BUT, you have to stop paying them for 3 months in order to "build a case."
I don't want to hurt my already dying credit rate.
Are there any other type of credit counseling services that DON'T require you to hurt your already damaged credit?

I'm not behind on any payments yet.
I'm still paying the minimum if not more every month before the due date.
I'm just trying to find something where I can have my payments all lumped into one large sum...and instead of trying to divvy it out amongst the different credit card companies...have it done for me.
(oh...and of course lower the interest rates)

Answer 1

Go to this site: http://www.nfcc.org/ . This is Consumer Credit Counseling Service (CCCS), a legit non-profit company that offers free credit counseling. They also have a debt management program available, if you qualify, for no fee. They can look at your financial situation and advise you how to proceed.

You absolutely do not want to use a company that lets your debts go for three months and then negotiates via threat of bankruptcy. That will absolutely trash your credit. Also, they will be taking their fees up front during that three months. It is also likely that your creditors won't agree and will just sue you.

If you go into any debt management program, it will affect your credit score just like a bankruptcy.

You can work at paying off your debt by yourself. Make a strict budget. Take every penny out of that budget and put it on the highest interest rate debt, while making minimum payments on the rest. When the highest rate is paid, move to the next till they are all paid off.

This will take 2 or 3 years but you will have a good payment history.

Answer 2

If your past due accounts are already in collection your credit is already hurt ..... try calling the creditors & work-out a deal with them make sure that what ever they say verbadum is put in writting ... after paying them they should report to credit bereau as paid ...... get letter from them stating that the accounts have been paid .... KEEP THE LETTERS FOR AT LEAST 5 YEARS... to ensure that if anything ever decides to pop-up you got yourself covered...some debt collection agancies can stop intrest & work out payment plan ... hope this helped...

Answer 3

work with a non profit organizations first. They can negociate a lower interest right now. Some companies want you to default so they can make money because if your credit is not bad yet, they can't make money because the company won't settle. If you just want your interest lowered, you can talk to your creditors directly.

Answer 4

Hi.
This site is well recommended for bad credit repair:
http://fype.com/badcredit