Ensure that your total credit card debt does not exceed 35% of your total credit available.For example, if you have ,000 in credit available make sure you owe ,500 or less.

Consolidating debt for military video

If you believe you do not owe the money, contact the creditor in writing and send a copy to the collection agency informing them with a letter not to contact you.

A debt collector may not: Report any problems you have with a debt collection company to your State Attorney General's Office, the Federal Trade Commission (FTC), and the Consumer Financial Protection Bureau (CFPB).

Each credit card provides a line of credit to offset any debt carried on the others.

By closing one, you reduce the total line of credit to help your overall ratio of credit used, to credit available to use.

The ideal would be to pay off all of your debt and then keep two or three major credit cards including one that shows the longest credit history. Keeping that debt to credit limit ratio in mind, close them in order of newest to oldest, at a rate of one to two per year, and never within six months of a major purchase like a car or home. While in the process of closing your credit card accounts, use any non-merchant cards such as Visa, Master Card, Discover or American Express to make one purchase each month and then pay the balances off in full.

This will keep the cards active, and good payment histories accumulating on your credit report.Consolidation means that your various debts, such as credit card bills or loan payments, are rolled into one monthly payment.If you have multiple credit card accounts or loans, debt consolidation through a credit counseling service can help simplify or lower your payments.Will it help or hurt my credit score to close them?It depends on how much debt you are carrying on all your credit cards combined.With a home equity loan, the lender advances you the total loan amount upfront, while a home equity credit line provides a source of funds that you can draw on as needed.