Debt, collections and credit card question?
Chloe B asked:
I have some bills that need payed off and I have one credit card. My question is if I go or contact a Credit counselor or Debt help business(Careone credit,debt relief agency) will they freeze my credit card account or put it on hold? My debt situation is not bad, but I’ve heard that if you seek help through a business that specializes in credit card debt or collections, they will freeze all of your credit cards. I am slowly building up my credit and I would hate to have them take my card away. Is this true? Any one that has or has had this problem or knows the facts please let me know some options…..Thanks!!!!
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I have some bills that need payed off and I have one credit card. My question is if I go or contact a Credit counselor or Debt help business(Careone credit,debt relief agency) will they freeze my credit card account or put it on hold? My debt situation is not bad, but I’ve heard that if you seek help through a business that specializes in credit card debt or collections, they will freeze all of your credit cards. I am slowly building up my credit and I would hate to have them take my card away. Is this true? Any one that has or has had this problem or knows the facts please let me know some options…..Thanks!!!!
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February 10th, 2009 at 12:23 am
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Consumer Credit Counseling Services talk to you to determine how much you can afford to pay each month. Then they negotiate with your creditors, getting them to accept lower monthly payments until all your debts are paid. They will make you sign an agreement to not obtain any more debt until the current debt is paid off. You then make a single monthly payment to them and they will pay your creditors. Note: there is a fee for this service whether they are not-for=profit or not.
The problem with this service is that many of your creditors, even though they agree to accept a lower payment, still report you as late to the credit reporting agencies because you are not making the full minimum payment. If they report you late, your credit report may show 30, 60, 90+ day lates– essentially ruining your credit. You will have a good reason for why your credit rating looks this way but it will fall on deaf ears. Creditors don’t care why it looks bad; they only care that it is bad. Your future ability to get another loan will be impaired to a certain degree. And don’t forget that as long as you’re on the a credit counseling plan, you can’t get another loan anyway. You signed an agreement not to incur any new debt at the start of the process, remember?
So as to your ?, NO you can not use the one good card you have.
Hope this answers your question
LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.
February 11th, 2009 at 8:21 am
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i think you are worrying too much about this,if you are pay your credit card amount regularly than there is no problem no one can freeze your account.you have mentioned that you did not have bad credit history than no problem you can do anything ok for more information visit my website and
February 11th, 2009 at 2:41 pm
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USually use a CC or Debt business when your bills are too much for you to take care of; and in that case, the last thing you need to do is keep charging; and in many cases, they will contact the CC company to get interest charges adjusted. IN all of these cases, you’ll probably use the use of the card
I’ve found some good information here too…
Good Luck.