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Isak1

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Debt management
Hi,
I am current 23 year old college graduate, just recently got a decent job(past 6 months) with 30k credit card debt on 15 credit cards. While I was in college I was using the credit card as source of living, rather then taking student loan, that was my mistake I realized. I had problem paying off the balances so it just carried over. I only have one payment reported 30 days past due and that's all, it just high utilization kills my credit score over 98%. Just one credit has 15k balance the others 5k, 2k, 1k.... I am having trouble bring down the balances....and it kills me even though my job pays decent amount(50k a year) plus the interest also. I was considering gettting a loan, but didn't work well.... now considering debt management program that closes my credit card and pay it off. Any recommendations please on how this might effect my credit score in long run, in terms of getting a mortgage or lease a car. Thank you !!!!

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To go into debt Management, you will first want to ensure you are dealing with a very very reputable and licensed firm.  There are so many bad ones out there.   The debt management team will negotiate with the credit card companies for a pay off and/or for reduced interest.    These will impact your score as much as that high utilization is doing to you now, although, the management process can affect your credit for the next 7 years on these "settled" closed accounts.   I suggest you put away the check book and the credit cards and forgo pizza for a while and put all available cash onto the cards.  Work on the smaller amounts first and you'll see progress which hopefully can encourage you to continue the process.  You only have the one late payment to date, that will disappear in time.  Closing out the cards will drive down your scores even further.  Know that every time you pull out one of those cards to make a purchase, you negate any progress you are making.

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