Should I cancel my debt consolidation?

Question:

I am currently a little over $5,000 in debt, not including my car loan. I am planning to move to a new city at the beginning of 2009 and am trying to get myself out of debt. I went to Care One Credit and applied to use their services without looking into their company. I have since found out using this service can hurt my credit. I have been a member of this service for about a week now, and am starting to get notices saying my credit cards are being revoked. I have never been late on a payment and I was just wanting to get out of debt quicker and get lower interest rates. Should I get with care one and cancel the service, and speak to my credit card companies on my own, or is it too late to stop this from hurting my credit?

Answer:
Debt management programs are for people who can no longer make payments on their cards, and is used as a last step toward bankruptcy. People usually come to these programs when they are severly behind in payments. Generally, this helps peoples credit as it brings them current. However, since you were already current it could have the opposite effect.

It sounds like you just wanted a quick fix, which a debt management program is not. One requirement of these programs is that all your accounts will be closed. You probably can get off of the program, but it would be up to each credit card company if they will re-open your account.

If you can not get the accounts reopened then I would actually just stay on the program and pay them off as soon as possible. You have a lower interest rate and since most of the damage is already done.

It's a bit late for this piece of advice for this case, but you should NEVER sign up or apply for anything without first reading about the program and/or company. Because you did not take the time to find out exactly what happens you did not get the result you wanted. This is not only for Credit but just about everything else in your daily life.

sorry lenders see any one using counseling just as bad as a bankruptcy you are two late

These companies are "Owned" by Credit Card Companies, as you found out once they think you are having problems, they sink in their TEETH ,DEEP. They revoke your cards, so you have no more credit, they put a freeze on your credit so can not get any credit. They promise to reduce you monthly payments, they usually increase because they now Raise Their Percentage Rates through the roof, many times 2-3 times what you current rates are before you tried to get help. If you look closely at "Credit Cards" what it REALLY IS, IS LEGALIZED LOAN SHARKING! I'd get away from the company as fast as I can, but in your case it appears the damage has already been done. In many instances they can actually cause a person to file Bankruptcy, some help huh!

With credit card debt management, one can easily combine his different debts in to a single debt and the interest rate will be charged upon that particular amount. This automatically trims down the repayment installments. The advantage of card debt management is that the current rates will be lower than the earlier ones.

Always remember to repay the loan amount of card debt management on time. Or else, it would be a mere shift from one set of problem to another. Avoiding the repayment installments would be a financial suicide. Usually this is the worst mistake that most of the individuals do. Moreover, you should continue with the small repayment installments of the loan amount. Then, you can search for various lenders offering credit card debt management.

Make your search for credit card debt management through various online sources. There you will find innumerable lenders at a single place. You may also find nominal rates of credit card debt management loan due to hard core competition in the market. Read more about it at: http://www.credit-card-gallery.com/credi...

Should I cancel my debt consolidation?

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