Hello Lita, If we currently have good credit ...

mzmskratt...I have personally used bill consolidation, and was very thankful. The interest was much higher, but the on, MOST IMPORTANT THING TO REMEMBER...is when you do this, while you're still in the finance office...CUT UP ALL THE CREDIT CARDS BUT ONE,( Visa or MC)   that is the one you'll use for emergencies only...flat tire, car breaks down, hospital er, that sort of thing. Then every month pay off the ballance, just like AMEX. This has worked for me foe the last ten years, and I'm very happy.

If your scores are in the 700s and you enter into credit counseling, they will no longer be that high. I is better if you put the credit cards into a drawer and only take them out to pay the bills. Do not carry them around with you until your balances are below 1/4th of your credit limits. Never let them go above that mark. The more credit that is available to you that you are not using, the better you will look to a prospective lender. If your balances have gotten out of control, in some cases, you can negotiate better interest rates yourself. Let me know if you have any other questions as I do this type of consulting all day at work. You will have better results if you are answering to someone about the results of paying down your credit card balances. Be accountable.

Before you go to credit counseling, the increased debt that you have on your credit cards may qualify you for a mortgage loan modification on which your rate and term can be negotiated with your lender. Do this before paying down the credit cards as one of the qualifying factors is that your debt must show above your means. After you get your mortgage loan modified to really low interest rate, you can then tackle the credit cards. Check out this A+ accredited loan modification company www.cresmod.com or call me at 1-800-557-1467 Ext 4. Good luck with your finances and take care. Crystal Kehoss/Mortgage Loan Strategist

In addition to seeking paid counsel, there are also non-profit financial counseling alternatives.  A few are listed here - and you should try to negotiate directly with your card holders as well.  http://ratenerd.com/how-to-handle-debt-collector-calls-1395

There are so many questions I would ask you before you do this that it would be difficult to write them all.  You need credit in order to get credit. The way a mortgage company will determine if he wants to lend hundreds of thousands of dollars to you is to make their decision based on your track record with your creditors. If you have gotten yourself into a jam, the best thing for you to do, is start by paying more than the minimum amount due and put the cards into a drawer as opposed to carry them around with you. Do not make any major purchases until these debts are paid off. If the credit card company lowers your limits, call them and tell them that this will damage your chances of purchasing a home with a decent interest rate. I have never seen them deny this request. Above all, change the way you handle your finances immediately. Be accountable to each other for the things you have purchased. Get online or watch the Suze Orman show. Do everything possible to take care of your finances. If you have relatives that can help pay them off, offer to pay them back as quickly as possible and give them your credit cards until you have done this. Be hard on yourself. Remember that it is a bigger challenge to want the things that you already own than it is to want the things you don't have. We will always want more just don't take it!

i believe i would talk to credit counselin. good luck

This is on of the most commonly asked question.  Let’s start with the basics. A credit report is your “financial history.”  What might be referred to, as a credit “rating” is a credit score.  This is a complex calculation, which helps the creditor understand your likelihood to repay a debt.  It is a picture of how you have paid back the creditors that you borrowed money from as well as how you have met other financial obligations.  All three major credit-reporting agencies use FICO (Fair Isaac and Co.) scoring in making credit decisions. Creditors decide whether to grant credit, provide a credit card or loan based on their own criteria and the history they see on the report. Fair Isaac and Co. is the creator of the FICO score, which is used to determine a person’s credit risk.  The FICO score is composed of the following:

• Your payment history.
• Length of credit history.
• How new is your credit and are you taking on more?
• Your total credit limits to see how much credit you could get if you charged all your accounts up and took off with the money.
• What types of credit do you have and is it a healthy mix?

So, how does credit counseling affect your credit?  According to Barry Paperno, of Fair Isaac Customer Care - “Using a credit counseling service and having this situation reported on your credit report does not have a negative impact to your FICO ® scores.  However, the actions you take based on the recommendations of a credit counseling service may, in some cases, affect your score.  For example, an agreement to settle for less than the full amount due on an account may be regarded negatively, as well as any late payments reported either before or after you begin the plan.”

In summary, when in credit counseling if your credit is good, it will remain good.  If your credit is damaged you will be on your way to rebuilding it.  In addition, when enrolled in a debt management plan you will be getting out of debt approximately 3 times faster than people who try to do it on their own.  Reason being is credit counseling companies negotiate directly with creditors’ lower interest rates that are passed to the consumer.  Now more of your money is going towards the principle rather than to finance charges.