Bankruptcy

That is true about the risk to your credit report -- a warning along those lines it is at the bottom of the article link that I posted. Talking to them, as far as I know, does not change your credit report. I would think that note would not be as limiting as bankruptcy.

[MissCrabette]

Stella, it's ok. I know it can sometimes be difficult to tell the good guys from the bad guys. Here's a list of reputable organizations:

http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm

[PrincessFiona]

I would suggest not filing for bankruptcy. Many jobs today will actually do credit searches and it could hinder your dh's job search later. The consumer credit agencies are likely to have a similar negative affect on your credit....this will all bite you in the butt later.

I saw from your siggy that dh is a PGY-1 in IM....so you have 3 years of training. I would suggest taking out a physician loan from SunTrust (if possible) to consolidate your consumer debt.

Try applying for a physician loan through SunTrust. The interest rates are better than credit cards (though I think they're pretty high now at 12%) but that would be a much better option.

We got a Suntrust loan when we were literally drowning in consumer debt (credit cards) and couldn't get through each month. There are several places that will give docs in training loans.

I would do everything to avoid the bankruptcy or credit counseling.

kris

[DrWahoo]

My husband thinks that we don't make enough money right now in residency to begin reparing our credit. What do you guys think ?

it is never too soon to begin repairing your credit. anything you do in the interim - the longer you wait - will just follow you around. everything stays on your report for at least 7 years, and I think a bankruptcy may stay longer. if you don't have a lot of consumer debt (which I think you said), then you really, really need to take advantage of your continuing "student" status and work with whomever you do owe to create a payment plan. If it's medical / school loans, you really should be able to talk to those people and create a plan.

[houseelf]

Lily,

I have to politely disagree with your view on bankruptcy. To be clear, sure, some people abuse the system. This happens with every aspect of society and with every right and benefit created by society. The free rider effect is an unfortunate downside of our economy.

With this being said, the credit card lobbyists and uber-conservatives have created a cultural image of the ammoral debtor in order to preserve their financial stakes all while giving people access to unreasonable amount of personal debt. This is evidenced by the fact that most bankrupt individuals receive dozens of offers for credit cards within 6 months of discharge.

If you look at the stats, most currently filed bankruptcies occur due to divorce, job loss, or some sort of catastrophic health event. Our parents' generation didn't have this issue because credit cards and zero down mortgage financing didn't exist. Period. If they didn't have money for a home, they didn't get one until they saved 20%. It is not that the previous generation was more fiscally responsible, but the CREDITORS were more fiscally responsible. The industry had to lend money more judiciously because of tight government controls and a higher inability to recoup bad debts.

Getting back to the point at hand, I think that the b/r laws as currently enacted offer little protection for the debtor in most cases and as such, I would advise against it. However, I don't think a viable alternative to b/r is to just "suck it up" because many individuals have had catastrophic events occur which are out of their hands. In other words, there but by the Grace of God, anyone of us could be the "ammoral debtor".

Kelly

ETA: My apologies for debating in the non-debate forum. If need be, we can move this thread to the appropriate forum.

We have been with Springboard and they have been great. Here is their website: http://www.credit.org