I wanted to see if anyone has used those credit services (like care one..). I have had over $7000.00 in medical bills in the last six months and have mounted these expenses on a credit card. We already had some debt, but now it's trying to swallow us. Any suggestions?
Thanks

Is that a debt consolidation service? I've heard that it negatively impacts your credit when you use those services.

Is the entire $7,000 in just medical bills?

yes... the $7000.00 is medical, but there is roughly $2500. that isn't. Same card. That's what I was afraid of with the Credit counseling services. I'm paying the bills, but it's tricky. I was just trying to free up the constant struggle.

It wouldn't hurt to contact a company like that and ask them what (if any) impact does it have on your credit?

How is your credit report now?

If you go through a credit counseling service it looks like bankruptcy while you are going through one of their debt managment plans.

i process bankruptcies at work now. i talked to one guy who went through one of those "wipe your debt out!" services, which was basically a bunch of legal maneuvers.

bad move. one of the companies figured it out and sued him back. now he's stuck and declaring bankruptcy.

i'm going to ask at work tomorrow to see if anyone knows. one of my clients has a debt consolidation company as one of their unsecured priority claims and i have to see how to process it correctly anyways.

(btw bankruptcy documents are a PITA)

If you go through a credit counseling service it looks like bankruptcy while you are going through one of their debt managment plans.

alm99 said it. Check out Dave Ramsey (http://www.daveramsey.com/). He's a nationally known financial advisor. Those debt consolidation companies are as bad as declaring bankruptcy.

Suze Orman is another good person to look up.

I realize it's too late now, but perhaps someone can use this for future reference. NEVER put medical debt on a credit card. Work out a payment plan with the hospital, doctor, etc. First of all, it's seldom reported to the credit bureaus and secondly, it will be interest free. I broke my collarbone last year and am still paying off orthopedic surgeons and the hospital. They're very flexible and patient. I did the same thing when my daughter had a tonsilectomy 2 years ago.

As a former debt collector I can offer you some advice. Stay far away from any credit counseling service, or a debt consolidation program. Those things are leeches and really, I know that when I did collections they were the people that I called back last, and gave the least amount of room to wiggle, primarily because they wanted ridiculous settlement offers (like 80% off).

First, if you own a home, check to see if you can possibly refinance. That will give you a good bit of cash to pay off a large portion of the debt. Many times collection agencies also have these deals worked out with mortgage companies where if you refinance through an "affiliate" they'll completely wipe out your debt.

Secondly, which credit cards are they? Most of the credit card companies now-a-days are only holding on to debts for a few months until they sell them off to some joe schmo collection agency. If it's still with the credit card company, give them a call -- usually they'll settle for about 60-75% of the balance (including interest accrued) with a lump sum settlement. Some will actually take that settlement in a monthly payment plan but usually require fairly high payments. If it's already been sold off you're really in luck. Credit card companies are selling debts for 5-6 cents on the dollar, some offering huge savings on settlements. I know the company I worked for did purchased debt from places such as Discover, Mastercard, Exxon, American Eagle ... etc and as soon as we'd get a portfolio in from them, we'd send out mass mailings offering the debtors as high as 70% off.

If you don't have the cash to pay it off right now, check out taking a loan. The interest rates will be significantly less. If you've got a friend with cash, try and see if you can take a loan out from them. More than likely they'd understand that you ran into some trouble earlier and would be more than willing to help out, and probably would charge you very little cash to do so if any.

You're really in luck right now as the collection agency's are growing and expanding at massive rates (very much like the website hosting market) so you're able to get some really good deals when paying off debts.

I just want to add that if you are considering a home equity line of credit, that if you declare bankruptcy, that debt cannot be written off in the settlement. Home loans are secured debts whereas credit card debt is not.

I just wanted to thank everyone for replying. My husband doesn't want to refinance our home. We have sold some things to catch up the bills. I am interested in how I can get the credit card companies to lower interest rates or in one message pay off a percentage of the debt.
Thank so much

Another comment about "credit counseling services"...

A lot of these services charge an "enrollment fee", and in many cases, it's works out to be the entire first payment you make on your "payment plan"...