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Debt Consolidation

By Terry Savage on March 23, 2023 | Credit/Debt

I have 3 credit cards and 4 store credit cards. 4 of those cards are at the limit or over the limit they all have low limits. I have a 634 credit score, mostly because I carry a balance and my ratio is high. I have been very good at paying my bills on time for several years. I’m having problems with my husband who is addicted to cocaine and he has been using hundreds of dollars from my paycheck. He doesn’t work. these issues are getting more severe and have gotten me behind in many of my other payments (utilities, rent, car loan, etc.). I just signed paperwork with Accredited Debt Relief and their law consultants Five Lakes Law Group. I’m very nervous about this process because it has only been these last couple of months that I was having trouble paying my minimum payment. I was told not to make anymore payments to my cards and to let them go so Accredited can negotiate a settlement on my accounts. Did I make the right choice about my debt consolidation? The other issue (husband) he is working on that. Please help

Terry Says

No, I do not think you made the right choice. In fact, you will definitely put your good credit at risk. This scenario of not paying, building up enough money to make a settlement offer (and pay the company a fee) is the straight road to ruin.

So first, before you sign the papers (and you have 30 days to rescind them, and just don’t put money into their set-aside account) call 800-388-2227– the National Foundation for Credit Counseling. They will work through your situation.

The ABSOLUTE first thing you must do is remove your spouse from access to your bank account!! Take away his debt card. Tke his name off the account. Change your PIN on your debit card. And then contact AA or another addiction referral service.
You might need to consult a divorce lawyer to not necessarily divorce, but to get a legal agreement that you are not responsible for his debts. You are going straight down the tube with him if you fail to act immediately.



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