[Piccsweety]

Do debt consolidation agencies really help? If I have a credit score of around 535 and improving slowly on my own, will it help to go to a debt consolidation agent. I'd like to buy a house fairly soon and wonder if these kinds of agencies can help pretty quickly. Also wasn't sure if they were somewhat reliable or bogus (forgive the silly word).

[KMSRyana]

Unfortunately, most debt consolidation agencies do not offer quick remedies like what you are looking for. What they generally do is enter into an agreement with you that they will manage your current debts for you. What they do from there is contact each of the companies or persons that you owe money to, and set up partial payments to them. Though they may pay the entire obligation off in time ( usually not ) it is not in the timeframe that was originally set up, or for a lesser payment than what they really want. In time, it CAN help someone obtain a better credit rating. But it isn't a fast solution. The other adverse effect is that most creditors will report to the credit bureaus that you are in some form of credit counseling and they are accepting partial payments. There are very few lenders that will grant a new loan when they know that you aren't paying your current obligations in the manner which you initially agreed upon with your creditors.

If you have paid any of your debts in full, obtain proof. Send copies of the proof ( keep the originals because you may need them later) to each of the credit bureaus. There names are Experian, Trans Union, and Equifax. They all have .com addresses with information on how to contact them. Most companies are very quick in putting negative information (that you didn't pay them on time) on the credit bureaus, but almost never have the negative information removed once they have been paid. In showing what you have already paid, your credit will gradually improve. Also take what you still owe one step at a time. Focus on the more manageble ones to pay immediately, rather that spread a little money out to everyone.

I hope this helps :)

Some good information can be found here , takes some reading, but there are addresses for the major bureaus and some useful information.