I got laid off from my job a few months ago and got behind on payments on two of my cards. They both said they were going to close my account if I didn’t pay a certain amount by a certain date. I couldn’t make the payment by the date, and was worried about my credit score if two accounts were closed, so I had to join the debt relief program for both cards.
I’m seeing mixed things online about these programs. Some people say consolidation loans or filing for bankruptcy is better than these programs (not advice for my situation, just the general views online)
I have a new job now and low living expenses so I thought it would be best to keep my accounts open, and just pay the cards off in full to end the programs when I start getting paid from the new job.
Was the as big of a mistake as the internet is making it seem to be?
Debt relief program – did I make a mistake?
byu/jobstreetsmarts inCreditCards
Posted by jobstreetsmarts
3 Comments
Well for one it tarnishes your reputation with the bank. These programs were born out of threats from lawmakers, not the kindness of their hearts.
I’d say pay it off sooner than later, stop using cards until you’re back on your feet, and don’t be surprised if they close your card the same month you finally pay everything off.
Filing for bankruptcy when you can reasonably pay off the balances in short order is completely absurd. You did the right thing here.
You could probably work directly with creditors. Unless you’re working with a non profit program, they’re charging you too much in fees. I’m glad you found a job and I’d just work on tackling the balances I would not consider bankruptcy.