Got way out of control with credit cards and started to not be be able to pay on time.
I’ve started National Debt Relief program. What do you think of this program and how is it going to affect my future credit limit?
I appreciate the question but it’s a bit like asking if the wind is going to blow from the east a month from now.
National Debt Relief is exactly what they say they are, a debt relief company that is selling a service, for a fee, to intervene with your debt. I don’t hear complaints from consumers about the administrative capabilities of the company or people bitching about customer service issues.
Generally when I look at any debt relief company I first go to what they have to say about bankruptcy and see if they are being straight with people.
National Debt Relief says, “Truth be told, any financial expert will never suggest this as a first option. While it may seem like the easiest way out, the consequences and bad effects it would have on your credit history makes it not worthwhile in many circumstances.” – Source
Yet experts like the Federal Reserve Bank of New York have a different view on that subject which you can read here. So on first glance it seems they might be a bit biased about explaining bankruptcy fairly.
I have no clue what option National Debt Relief has sold you on. It might even be their debt settlement approach.
However the most important issue to focus on here is not the solution to select but the reality of your situation so you can then make an informed decision about what the right solution is.
As an example, if your issue is you don’t mind falling behind on your bills and have that reported about you for seven years on your credit report, then maybe debt settlement is the way to go.
But if you find yourself living so tight month-to-month and you are unable to save for retirement and build your emergency savings account then bankruptcy is a solid first choice.
Maybe you have no problems making your credit card payments and saving at the same time but are looking for lower interest rates, then a credit counseling program might be the right choice.
I’ve got this online Get Out of Debt calculator that can help you evaluate your different choices.
Future credit impact really has less to do with which solution you elect and more to do with how rapidly you can dispose of your credit and get back into rebuilding your credit, which is easy to do.
No respectable debt relief provider should hold you back from getting a second opinion. If you are feeling unsure if you made the right choice it is not too late to read my links and also talk to a local bankruptcy attorney and a credit counseling group and then make up your own mind if you made the right choice for you. All anyone can do is give you factual information and allow you to make the final call on what path to follow.
I doubt National Debt Relief would object to that advice.