Credit card debt relief : reality or scam

[Wartrace]

Originally Posted by Parnassia

This.

Just who "informed" you about this debt relief option OP? That's probably your first clue to how legit it is. There are private companies that offer debt counseling and consolidation services.

A lot of the private debt relief companies are scams. My advice is if you got in over your head in debt seek bankruptcy protection. Sure it will ruin your credit for quite a while but that is the last thing you need (more credit).

[Sonic_Spork]

Originally Posted by Wartrace

A lot of the private debt relief companies are scams. My advice is if you got in over your head in debt seek bankruptcy protection. Sure it will ruin your credit for quite a while but that is the last thing you need (more credit).

The weird thing is...it actually won't necessarily.

I had one about seven years ago. Very particular bad circumstances, life things I shouldn't ever have to face again, trying to survive my ex's mental health collapse. My balances were all really high, and I was able to make the minimums but it was just barely keeping the interest from increasing the balance each month. It was bad. I tried to handle it but I was in over my head.

Immediately after the discharge when those balances zeroed out, even though I now had a bankruptcy and all those derogatory accounts (the discharged ones) on my record, my score jumped UP. A bunch of maxxed out cards will hurt your score more than bankruptcy will! And in short order I opened a new credit card. It had a low limit initially, which was fine, but I wanted to start rebuilding by managing it well, right away.

Because my bankruptcy was NOT a result of impulsive spending and the life disarray that had brought about my financial problems had been sorted (left the dangerous ex)...I knew that I'd be able to handle not getting myself in trouble by opening that new card. Thus far I am correct about that. My score was back in the 700s long before my negative accounts, let alone my bankruptcy, fell off my record.

Some lenders will not do business with someone who has a bankruptcy on their history, but many will. Most just want to see that it is discharged and over with, and that you haven't messed up since then. Hell, four years after mine I got a car loan on a brand new vehicle with 4% interest from my credit union.

[Seguinite]

It's probably a scam. BUT....... the OP is in California. That they might be pandering about with talk of CC relief wouldn't surprise me even a little bit.

[don6170]

Originally Posted by Dad01

I was informed that state or govt is offering credit card relief for some people who qualify

Originally Posted by Wartrace

A lot of the private debt relief companies are scams. My advice is if you got in over your head in debt seek bankruptcy protection. Sure it will ruin your credit for quite a while but that is the last thing you need (more credit).

If you need help with credit cards or debt in general, contact a local branch of the National Federal for Credit Counseling (https://www.nfcc.org/). They are a legit group that provides assistance for free (or low cost). Definitely contact them before filing bankruptcy.