No. of Recommendations: 0
First, congrats on paying down the debt. I did Genus too, and have had no complaints. They negotiated my largest account down to 0%, the others went to 2% and 6%. The combined monthly minimum went down tremendously (even with the roughly $7 service charge each month). I was still paying more towards the principal each month than I had been when I was trying to pay back the cards at their original rates. In addition, now that I have paid in full, there is no indication on my reports that I had been in a repayment plan.

When I got a bonus from work, gifts from parents, or just had a little extra cash lying around, I sent more than the minimum. I started shortly after I graduated college, with more than $10,000 on three cards. I paid off the total in less than four years. When I started the program, they told me if I made the regular payment, I'd be done in eight years. As an aside, I owed more than $30,000 on student loans; as a result of having manageable credit payments, I have never missed a payment on the student loans in five years of repayment.

No one ever said you can rebuild your credit in an afternoon. But, if you are struggling with mountains of consumer debt, you probably shouldn't be looking to take on a significant new obligation (mortgage) until you have found a way to stabilize your situation. If you have the option to consolidate to a lower interest personal line of credit, I would go that route first. If not, a debt management program might be a reasonable choice.
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement