If you come into a small inheritance enough to pay off your debts is it better to pay them now or over time with a credit counselor company?
It would be better to pay off all debts as soon as possible!
As said in the above answer, it makes more sense to go ahead and pay the debts, especially if you are paying interest or fees on these debts. But if for some reason you decide not to do that, pay them on your own because a credit counseling company will most likely want to charge fees for their services.
Put the small inheritance into savings, so that next time around you have some cushion against sudden expenses. There are some decent CDs or savings accounts that pay interest. Then, work hard and scrimp for awhile to pay off those debts. If you need help figuring out how to manage the debts, a non-profit credit counseling company can help. There are also some good money management chatrooms that can help you become more savvy. I like the one on MSN Money.
To become a credit counselor you should first take a training course offered by the National Foundation for Credit Counselors. Once the training course is complete you can apply for a license with the Credit Counselor association. After that it is a matter of finding a company that hires credit counselors
Yes. I wish I had known this years ago!! I had good credit, always made my payments on time, but was struggling to do it. I enlisted the help of credit counseling and they negotiated better interest rates for me, but on my credit report next to each account was a note saying I had to use credit counseling and it did affect my overall score. Credit counseling is great ONLY if you are LATE…
In most cases, it is always better to pay the credit card off in full because the payoff is best for your credit rating. If you are able to settle the debt with an agreement that states that the credit card company will not send an adverse action transaction (e.g., chargeoff, workout, etc.) to the credit reporting bureaus, then you are better off settling.
Closing the account will remove the temptation to spend up the cards again but, closing the account can actually lower your credit score. You ought to take that question and your private credit information to a credit counselor for a better answer. By the way, CONGRATULATIONS on paying off the cards!
Yes, the credit card company will just continue to send you the bill until such time that your balance reach an amount applicable for a legal proceeding. When you don't pay your bill, your balance will accumulate penalties and charges, which will increase your balances monthly. Therefore, it is best that you seek the assistance of a credit card debt help counselor.