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I have a quick question which you can respond to without reading the rest of my message, if you're in a hurry:

Credit counseling services are good, because you get a lower interest rate while in the program. However, if you use their services, you also get a "debt management" notation on your credit history.

Here's the question: How much of liability is that notation, especially in the context of someone who has been rebuilding a good credit rating over the past three years and but still carries a high income-debt ratio.

If you have experience with this or have direct knowledge about the actual significance of the debt management notation, I would love to hear from you.

Thanks,

Hugh
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Here's the question: How much of liability is that notation, especially in the context of someone who has been rebuilding a good credit rating over the past three years and but still carries a high income-debt ratio.

Haven't been there myself, but here's what I've heard.

WHILE you are in debt management, the notation is essentially the same as a bankruptcy. You MAY be able to borrow money from your existing creditors IF you get a nice letter from your debt management counselor saying that the expense is necessary, un-deferrable, and in line with your debt management plan. But even then it isn't a sure thing.

ONCE YOU ARE OUT of debt management, the notation should disappear and you should have a decent record for the period when you were in debt management. (Most likely you were in sad shape before going into debt management, and your report will continue to show it.)
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