During college, I racked up quite a credit card bill (about $35,000 in credit card debt plus $8,000 in student debt). I have stopped using the cards and have been paying above the minimum every month.

I talked to a California based company,and they want me to go delinquent on my card payments and to pay them $7000 into an "escrow" account so they can try to negotiate down my debt with the credit card.

Do you have any advice for me as to how to absolve my credit card debt? I really feel stuck.   Read More

A recent Bloomberg article “Unintended Consequences of Mortgage Modifications: Falling Credit Scores” addresses a topic that deserves serious follow up. The article accurately identifies that loan modifications could damage your FICO credit scores, if they are reported to the credit bureaus using the new reporting guidelines set up by the credit bureaus and their trade organization, the Consumer Data Industry Association (CDIA).   Read More

If we pay off the credit cards, how likely is it that the credit card companies will close our accounts? We don't want to be without any credit. So, what's the best way to pay off the debt without losing our credit?    Read More

My minimum payment on my one card went from $250 a month to $350 a month and is pushing the limits of my budget which is already in the negative or barely positive.    Read More

On June 30th Bloomberg ran an article called "FICO Scores Show Flaws as U.S. Banks Cut Credit Lines." The article sufficiently bashes the credit score giant and their core product by pointing out that consumer credit scores are lowered when credit card issuers lower credit limits.   Read More

I'm trying to raise my credit score to purchase my first home. My credit score is 635. I was late a few times on a couple of loans. I've since paid them off. When I purchase my score the formula uses those old accounts that I've paid off to formulate my score. Is that fair or correct?    Read More

Q. I receive 6-10 calls per day from the debt relieve people asking me to contact them so they could either wipe out my credit card debt completely or a least reduce it by more than half.    Read More

Q. I am watching your show "On the Money" and the topic is: "How to raise your credit score."

I have great credit: 788 on Experian. I am planning on buying my first home, hopefully by September. My only debt is $2,900 on Amex Blue.

In order to raise my score a little higher -- should I pay the entire balance off?    Read More

I opened a credit card account to help improve my credit a few years back. The limit on the card has not increased but the interest rate has since I received the card. The credit card account has a $65 annual fee, $300 limit and 29.99% interest rate. Is it worth it to keep the account open?    Read More

John Ulzheimer offers sage advice to a couple looking to close the dozens of credit cards they've accumulated over the years.    Read More