I’m new here and need advice. I’m in a LOT of debt. I’m thinking about joining consumers credit counselors. I here they are legit. My questions are the following.
- How will this affect my credit? I don’t believe my credit is really bad (hopefully) at this point because i’m managing to pay my credit card bills and mortgage. However i’m paying only the minimum.
- I may need to purchase another home in the next few years. How will this affect my ability to get another mortgage loan and the INTEREST RATE?
- Also i have medical bills. If i include them in the program and the Drs, hospital agree to them does that mean they will no longer do business with me. (i’m asking because i’ll need to have a procedure done this year and will need the hospital and the one particular Drs. services.
- I owe the IRS around $800. I’m not sure if i can include it but i’m thinking about it because it’ll be easier for me to get as many bills into one payment. (i’m terrible at organizing my finances).
I’m overwhelmed at this point. Major anxiety and health problems on top of that. Any advice would be appreciated.
Last I herd consumers credit counselors charge 20% to manage your debt. This is expensive if you tack on an extra 20% to what you already owe. They would not be my first step. I would try to work directly with the creditors on your own using one of the Nolo press or other legal guide books.
They can legally refuse to treat you unless it is considered an emergency. Some will if you default and some won’t. You need to ask.
When you do this kind of deal on your own or through credit counselors those you owe can report you as slow pay which it not as bad as defaulted (no pay) but this will effect your credit score. You should know your credit score.
I worked for debt management Company for a number of years. Yes, a number of them our legit. The Ones that I highly recommend are Care One, Freedom Debt Relief and Consumer Credit. Before you go with any DMP check the better business Bureau. 1st. Yes it will affect your credit score. It may bring it down. If you are not behind on the bills then contact the creditors to see if they will lower the apr-usually after making pymts for about 6months they will lower the APR.
If you choose to go on a DMP and decide to buy a house the mortgage lender will ask for a loan letter from the DMP just stating that you are on a DMP and making payments. My mother got a house and a car while on the program. it did not affect her APR. In reference to the Medical bills, unless they are hospital bills, most of them will not deal with DMP, but you can arrange to make pymts to them directly. The hospitals can not refuse to give you treatment( it is the same for people who do not have health insurance ) Doctor offices however can refuse to see you-just talk to the billing department of the doctors office and make payment arrangement that you can afford.
Hope this helps. It will take time and patience to get out of debt. Just take it day by day.