I apologize in advance if this is covered somewhere else, but my husband and I have about 15k in debt (credit cards and current high interest auto loans) and would like to pay them off this year. Currrently all of the CC accounts are in collections and we had a near foreclosure of rental property last year (sold at last minute). My current occupation is a training program that will end June 2006. Current income is ~40k, but after June will be ~130K. I would like to enroll in a CCCS program before June ( with the lower income rate) to have them negotiate the monthly payment and interest reduction and once I move to the higher income pay the balance off within a couple of months. Maybe 3 months instead of the 3 years.

Do you think this is the right way to go? We cant pay the collection fees on the old credit cards right now. We haven't used a credit card in over 2 years. Our monthly living expenses eat up all of our income. Do you think 6 - 9 months in a CCCS program could be any more damaging to our credit? Average fico now is ~520. Can't get much worse right?

I appreciate any comments.[size=5]

CCCS IS NOT YOUR FRIEND

Some have good results...MORE HAVE HAD BAD RESULTS

PROCEED WITH CAUTION

Are the cards charged off yet? If so, the damage has already been done. Paying them off through CCCS probably won't prevent anything further, other than perhaps a collections lawsuit.


OTOH, If they are not yet charged off, I'd so whatever I could to avoid that. It's worse than just lates.

If you do go with CCCS, ask about the possibility of rehabbing the accounts. Some lenders will fix up the reporting once you complete the program.

Others will make an absolute mess of your reports, check them out as best you can before signing up with anyone.

George is EXACTLY right.

Thanks to all for the comments. All of the old credit cards are already charged off. I heard about possibly re-aging the accounts and then paying them off. I am not trying to avoid any future damage to my credit (I'm convinced it can't get much worse), I'm more interested in the easiest/fastest way to get out of the hole and reclaim my credit rating.

BTW, I've used Consumer Credit Counseling Services ( aka Money Management International) in the past and had no problems with them. Any opinion of them good or bad?