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Can I still use my credit cards while in the program?

It is possible to still use credit cards in the program; however it is suggested that you freeze all excess spending.  DebtEliminator101 is a debt management program that is here to help you get out of debt.  This can only be accomplished if you report all open accounts to us and discontinue their use.  Also, it may be difficult to open up any new accounts with credit card companies because it will state on your records that you are in a debt management program and creditors will see that you are trying to get out of debt.  It is not recommended that you open any new accounts until your current ones are paid off in full. 

Also, creditors will be less willing to negotiate your debt if they see that you are opening new accounts, or still using some of your old accounts.  It shows them that you are picking and choosing which accounts to settle, and still paying others.  They will want to be paid in full, like the other cards that you are using.  Thus, for debt settling purposes, it is better if you do not use your credit cards while enrolled in the program. 

Since our goal is to get you out of debt as quickly as possible, the accounts that you report to us when you enter the program will be inactivated by your creditors.  Instead of using credit cards to meet your needs while in the program, use cash or a debit card.  You can also buy prepaid cards, which can be used like credit cards, but without accruing any new debt since you put a set amount on the card when you buy it.  You only have the possibility of spending what you have already paid, so it is a safe alternative to credit cards. 

If you feel the need, you can set aside one credit card for emergencies.  Make sure that this card is already paid in full, with no remaining balance.  It should also be separate from any creditor that is already being settled.  Keep it put away and only use it in times of absolute emergency.  One recommendation is to put the card in a Ziploc bag with water and freeze it.  Then, you have the card if you really need it, but it is not readily accessible.  Remember that it is within the credit company’s rights to close that account if they see that you are in a debt management program.