Is credit counseling THAT bad? Doesn’t it get erased from your credit report once you complete the program?
I’m currently in credit counseling but I’ve read stuff from people that says it’s almost just as bad as bankruptcy? Is this true? I am aware of my credit score and doesn’t seem to be that bad. I am currently in the "Fair" credit category. Don’t people in bankruptcy usually have much worse credit scores?
If it involves debt consolidation it’s just as bad. What they do is put all of your debts into default, ON PURPOSE. Then they make deals with each creditor and you’re listed as a deadbeat. That’s what happens. It’s sick.
You can do what counselors and consolidators do. What are some general numbers/totals you’re working with?
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March, 31st 2010 at 1:14 am
It is a lot less bad than bankruptcy.
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March, 31st 2010 at 1:32 am
Bankruptcy is the worst. And no it doesn’t get removed from your credit report.
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March, 31st 2010 at 1:50 am
If it involves debt consolidation it’s just as bad. What they do is put all of your debts into default, ON PURPOSE. Then they make deals with each creditor and you’re listed as a deadbeat. That’s what happens. It’s sick.
You can do what counselors and consolidators do. What are some general numbers/totals you’re working with?
I LOVE credit stuff and questions and answers. Here is one of my favorite sound bytes from a financial guru. Before you do ANYTHING else, listen to this. Scroll down and click "Listen to Dave". JUST LISTEN.
http://www.daveramsey.com/tdrs/index.cfm/2007/9/17/Getting-rich
This one audio clip of his CHANGED MY LIFE when I heard it.
Listen to this man for free, on the radio or online. This is like getting financial wisdom from Bill Gates except this guy has a national radio show.
References :
March, 31st 2010 at 2:02 am
While in a debt management program, your credit score might be just as bad as bankruptcy. However, when you complete the program, the stigma goes away unlike bankruptcy.
Some debt management programs negotiate by not paying creditors for 3 or 4 months then threaten bankruptcy if they don’t agree to lower interest or settling for less than the balance. Those are the things that hurt your credit the worst.
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March, 31st 2010 at 2:37 am
As far as I’m concerned, they’re equally bad. Re-establishing credit after a bankruptcy however, is actually easier than with credit counseling. Unfortunately, either way, new credit card offers will be with "strings attached." That is, very high interest rates and large yearly fees.
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March, 31st 2010 at 3:04 am
It does put a mark on your credit but nothing is worse than bankruptcy. The most important thing is making a committment to get your debts paid and if you need to do through credit counseling, go for it.
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March, 31st 2010 at 3:48 am
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