Does using a consumer credit counseling service to repay your debt effect your credit in a negative way?

4 Responses to “Does using a consumer credit counseling service to repay your debt effect your credit in a negative way?”

  1. mycredit wealth,com Says:

    They mark your credit report like if you where in Bankrupts, so yes. Now there are debt counselors that don’t use the same approach. However you pay a little more due to the fact that they don’t negotiate the CC companies just help you pay off you debt.

  2. rmlowrie Says:

    Short answer: yes it does. Longer answer: It is better for you to work terms of repayment out yourself with your creditors. Believe it or not, most are more than willing to work with you – let’s face it, money is still money in their pockets. But to help you in the process of eliminating your debt, no matter how much you owe, I would recommend a book that has set many people free, and I know it did for me: The Credit Diet, by John Fuhrman. Believe me, you will not only find it liberating because he gives practical tips on how to get out and stay out of bad debt, he also shows you how you can do it safely, securely, and with great confidence. Also, you will find yourself out of debt much more quickly than going through debt consolidation. And beware of the credit cards that offer "debt consolidation". Although they are not scams, they ensure that you will stay IN debt far longer than if you just bite the bullet, so to speak, and work the debt elimination strategy found in that book I just mentioned. Best of success, as I know you will make it if you put your mind and your money to it.

  3. leonardhomes@sbcglobal.net Says:

    Anytime YOU change the terms of the original agreement you will get some type of a ding against your credit. But it is better to get help from a counsler and work out a deal, than to just default on the loan or credit, it won’t look as bad.

  4. Assistance on Debt Consolidation through Nonprofit Organizations | Says:

    [...] Does using a consumer credit counseling service to repay your debt … [...]

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