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I have nearly $10,000 dollars in credit card debt and an average interest rate of 29%. I'm working two jobs at the moment and paying all I can each month, but with interest being so high my balances aren't receding. I'm going to grad school soon and need to get my debts under control before I go back to zero income. I have spoken with debt reduction Services and they seem legitimate, have a good reputation with the BBB, etc., but they say it will take 45 months to pay off my debts. I'm concerned about being unable to obtain any credit for the four years it takes me to pay off my current debt. Does this affect being approved for loans to buy a car or a mortgage on a house? If so, I'm not sure I'm willing to commit to such a program. Any advice?




I would first do a search of debt reduction Service on this site. See if there has been any discussion about it and you can get further information about the company.

If you are wanting to work on eliminating your cc debt, you should not be thinking about getting into more debt. That kind of defeats your purpose doesn't it?

I am not positive, but I believe I have heard that when you go into a debt reduction or debt consolidation program it can have an effect on your credit. For how long I do not know. Search the site here and you might find out some more info.

Sub: #1 posted on Sat, 08/02/2008 - 12:03

Lorri Lorri
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(Posts: 1721 | Credits: 224.66)

I believe that a debt management plan is noted on your credit report while you are in the program, but doesn't affect your actual score. I would think that it might make lenders wary of giving you new credit during that time. Once you are done with the program, the note comes off of your credit report and no longer has any effect.

Sub: #2 posted on Sun, 08/03/2008 - 04:30

alias1958 alias1958

(Posts: 1230 | Credits: 79.88)

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