How to pay off credit cards enrolled in a debt management program?
I have been in a debt management program with a local credit counseling service for about 8 months. My parents have offered to co-sign a loan so I can pay off the cards. The loan with the bank is a lower interest rate than the cards and will pay them off faster with a lower payment each month. Should I pay the cards directly or go through the credit counseling service? Which is better for my credit score?
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Pay off the cards but keep the accounts open. You earn points for having an account that is kept current (no payments more than 30 days late). This includes an account with a zero balance. A credit report will reference the account's high balance and current balance. If any of your cards have a yearly fee, I'd go ahead and close those ones.