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Should I use a debt consultation to lower my credit card payments?
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I have 4 credit cards with a total of $64,000. I tried getting all 4 companies to lower my APR or raise my limit. They all said, "No'. Should I use a debt consultation to lower my credit card payments? Will this affect my credit score?

Asked by iwantcookies 7 months ago Flag this question Flag this Question

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Many debt reduction programs negotiate with the credit card companies on your behalf. However, many credit card companies will not negotiate until you are severely behind on your bills. So some debt companies will suggest not paying your bills until credit card issuers are willing to discuss a settlement. Needless to say this is a very bad approach for your credit score and will affect your score for many years to come.

If you are not behind on your payments and your credit score is high, look for alternatives. Right now interest rates are quite low. If you have a home, you could refinance or apply for a home equity line of credit. Just remember that your home is the collateral should you default so you must be very careful if you go down this path.

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justineriv 2 months ago

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I have a question on your answer- What if there is no home for re-finance and no job- Is it a good idea for consolidation? How many points will go down on credit score???

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vp77450 7 months ago

Many debt reduction programs negotiate with the credit card companies on your behalf. However, many credit card companies will not negotiate until you are severely behind on your bills. So some debt companies will suggest not paying your bills until credit card issuers are willing to discuss a settlement. Needless to say this is a very bad approach for your credit score and will affect your score for many years to come.

If you are not behind on your payments and your credit score is high, look for alternatives. Right now interest rates are quite low. If you have a home, you could refinance or apply for a home equity line of credit. Just remember that your home is the collateral should you default so you must be very careful if you go down this path.

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justineriv 2 months ago

Credit card debt is unsecured debt. Using a secured debt (refinancing, home equity) to consolidate that is dumb. If things get worse and you have to file for bankruptcy, this will lead you to lose your home.

If you are out of a job, call the credit card company and tell them so. You should be able to get them to freeze the accounts -- interest rates don;t accrue but you also cannot use the cards. Then work on getting a job so you can start paying them off.

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ladald 2 months ago

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