I am in "great" need of advice/info on if I should use a debt consolidation company to help me in obtaining a lower interest rate structure and a decrease in credit card balances in the total sum of a depressing $38,000.:-( I am current on all, no late payments in the last 5 years, A-1 credit but just have "too much". My FICA scores have been about 680 and I am considering in being a first -time home buyer in the next 2 years; Any advice on if I should just try and pay these balances thru a continued struggle on my own or use a debt consolidation service?? Any input would be much appreciated!.. Tim
Well, typically the debt consolidation approach is not advantageous if your goal is to improve your FICO (assumed if you want to buy home). These outfits actually pay late sometimes. You can actually renegotiate your credit card debt just as they could by calling and being a little creative. You might also try this: Stop using the cards now! Make a plan to pay down balances over time time Try and renegotiate interest rates with creditors. Transfer balances from high interest cards to lower ones. If you have to prioritize which to pay first, you should pay down lower interest cards first. Pay down balances to as close to 10% utilization as possible. This means if your CL is 1000, get the balance to $100.00. Do not close the account. Take a bag lunch for a couple of years, the house is worth it!
Thank you for the input! I really would love to transfer my $8000-$10, 000 balances from the outrageous 26% apr down to like at least 7,8 or 10%! Id love to do that but they seem not to want to trandfer my entire balances for whatever reason causing more confusion! Wish I could talk to a human to tell me "Before" I would be approved what the credit terms would be! Tim
As long as you are current on your payments, I don't think the CC company will object to balance transfers. I've never seen that.
Have you telephoned them? If you have an excellent payment history, you can telephone the credit card company and say, " Hello....I've been a long-time customer of your bank and I've received an offer from ABC Bank that they'll give me a 8% rate for a balance transfer and my business -- Can you match that offer?" Make a note of who you speak to, and when h/she says, "Yes" ask them to send a confirmation letter, with the 8% rate noted.
do you have amex? generous CL's. amex blue 3.99 BT for life of balance. patelco, 8.9% fixed no default rate. penfed, 4.9% BT for life of balance.
