Does it reflect negatively on my credit report if I consolidate credit card debt using a debt consolidation agency? I can make my credit card payments, but only the minimums. The APR's are mid to high teens -- I feel like a hamster on a wheel. Is it worse to continue like I am, with credit cards maxed out and making very little headway on them? Or is it worse to get help? I have about $30,000 on credit cards. It's horrible I know. Any ideas on how to fix this would greatly appreciated. :confused:

It depends on the manner of debt consolidation. If a company buys all of your debt and then you pay to them at a lower rate this won't negativly affect you. If they work with the CC companies to get you a lower rate and then take a single payment from you and pay them, it affects your credit some. The CC companies report your account as closed but with a balance. Having no major CC open on your account affects you a bit.

The biggest thing though is the debt ratio. If you have 30k in credit limits and 30k in debt, that looks bad.

So IMO, its worse to continue like you are. The best thing you could ever do for your credit is get out of debt.

Thank you! Where do I find a company to "buy" my debt and let me pay them?

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Originally Posted by Alrightthen

Thank you! Where do I find a company to "buy" my debt and let me pay them?

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That's the tough part. Most probably won't unless you have a home with some equity.

My advice would be to call one of the non-profit credit companies like InCharge.org. They will set you up with the best plan they can.

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Originally Posted by stevetcg

Thats the tough part. Most probably wont unless you have a home with some equity.

My advice would be to call one of the non-profit credit companies like InCharge.org. They will set you up with the best plan they can.

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I do have a home with A LOT of equity ($200,000); but I haven't been able to get a home equity loan because of my credit card debt -- kind of a catch-22. Is there something else I can do with the equity in my house? Thank you again, so much.

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Originally Posted by Alrightthen

I do have a home with A LOT of equity ($200,000); but I haven't been able to get a home equity loan b/c of my credit card debt -- kind of a catch-22. Is there something else I can do with the equity in my house? Thank you again, so much.

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Talk to the NPO Credit people. They will help you find the best solution including finding someone that WILL give you the HEL. Make sure you use a non-profit though. Many of the others will just make things worse.

Some advice because I recently filed bankruptcy, don't buy it unless you have the cash for it.

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Originally Posted by mommyoftwins200

Some advice because I recently filed bankruptcy, dont buy it unless you have the cash for it.

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Hello. Thanks for the help; but what are you referring to when you say "don't buy it"??

When your in a store if you don't have the money for that item like cash, then do not buy it I had to learn the hard way.

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Originally Posted by mommyoftwins200

When your in a store if you dont have the money for that item like cash, then do not buy it I had to learn the hard way.

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While good advice, not really the topic in question here.

Good question. I got <a href="http://www.debtguru.com/">credit card counseling</a> at http://www.debtguru.com and it was so extremely helpful. You can get help! Good luck.

Debt consolidation companys can be "iffy". Not all the companies you owe have to particpate with them. Some will while others won't.
Debt consolidation is something you could do yourself. Reason being these companies will charge you a big amount just to try to consoidate your debts. Bottom line might work ,might not