I signed up with a debt management company due to a large amount of credit card debt I accumulated.This was after I read that this can be equivalent to filing for bankruptcy? Is it really that bad? Now that I have focused on paying off debt (on time) and budgeting, I am hoping my credit score can greatly improve in spite of the debt mgmt program? I have since canceled the program and I’m paying the debt myself.Thanks.
Please, no sarcastic "told you so" comments, I’m kicking myself enough as it is!
Signing up with a debt management company is not the same as filing for bankruptcy,
This is a step that people take to avoid bankruptcy and all the other negative effects this has on your credit score and on your personal life.
Debt management is just a structured way of dealing with large debts: the company only takes the pain and stress out of dealing with the people you owe directly.
HOWEVER: there are a lot of fraudulent debt management companies out there, that cost you more then they are worth.
The monies that you pay to them can easily be used to cut of some Months! of your repayments.
The best way is to work out a reasonable payment plan your self or contact your local citizens’ advice bureau for assistance.
They don’t charge for their services and they can even provide legal advice for free or a marginal fee, depending on your situation.
Your credit score will improve but it will take time.
Good luck,
I’m assuming that this was a debt settlement firm that promised to settle your debt at 50%, right? If this is the case, then the damage is directly related to how long you were with the program and how many months your accounts went past-due….Another factor is if the accounts charged-off as bad debt.
References :
Сredit repair workеd fine to fix my credit. They disputed and removed lots of bad items from my credit report. I used this service – creditreport.fateback.com
References :
Signing up with a debt management company is not the same as filing for bankruptcy,
This is a step that people take to avoid bankruptcy and all the other negative effects this has on your credit score and on your personal life.
Debt management is just a structured way of dealing with large debts: the company only takes the pain and stress out of dealing with the people you owe directly.
HOWEVER: there are a lot of fraudulent debt management companies out there, that cost you more then they are worth.
The monies that you pay to them can easily be used to cut of some Months! of your repayments.
The best way is to work out a reasonable payment plan your self or contact your local citizens’ advice bureau for assistance.
They don’t charge for their services and they can even provide legal advice for free or a marginal fee, depending on your situation.
Your credit score will improve but it will take time.
Good luck,
References :