best option for cc situation

[Anonymous]

Hello, I have been reading these forums for only a week and I noticed that people have really good advice. I was hoping that someone will be able to offer sound advice.   I have managed to get myself in approx $24 of cc debt.  I am looking for the best option to help me get out of debt.  Here is my situation:

I have approx 15 cards w/ a mix of store and other cards: approx 13 have a balance.  I am almost at the credit limit on all of them.  I have been making my payments on time and have a TU score of 662.  My debt to income ratio is not good.  I also have a student loan (115/mo), a mortgage payment  600/mo(but when we refinaced the mortgage is in my boyfriends name), a car payment (318/mo) and 2 personal loans (273 & 156/mo). I usually pay 800/mos in cc bills.  I recently got a new job and am making more money, so I do not need to use the cc's to buy groceies or gas.  I have cut everything out of my budget that is not necessary, however, I am having difficulties making the min. payments as most of the cards are between 25-30% APR.  I have used my tax rebate, my stimulus check, my savings and my bonus to cover the min due.  I owe more than I bring in home in a month.

I do have a part time job, but not making any regular income and have not been able to find another that fits with my work schedule.
I have contacted some of the places that others have used.  When I contacted a DMP I was told that they cannot help me as I owe more than I make.  I also consulted with a Debt settlement company and they said that in 29 mos. with a payment of 430 a mos (they take 14% for the 1st 11 mos. only) i will be debt free. I control the account and send the payments.  And since I travel for my job, I will be able to keep a card open to use for hotels, cars, and flights.  They told me since I have other loans, my credit score will not be affected much.   IS this true?
Does anyone have any other suggestions on how to get out of debt?  I need to make a decision ASAP as I will not be able to make my payments in June.  Any help is appreciated. 

Thanks in advance. 

[Anonymous]

Have you spoken with a BK lawyer, if your payments are due in june and you wont be able to make them and a dmp says they cant help you then you are in a bad spot.  I'm thinking a debt settlement company trys to neg.  a settlement but then you have to come up with the full ammount that you settle on.  I can only say I wish the best of luck in whatever choice you make.  Vicki

[Anonymous]

Thanks for the suggestion and well wishes.  I contemplated BK, but am afraid of losing house, car, etc.  And i was concerned that it stays on CR for 10 yrs. But may be an option.  Thanks again.

[marty56]

If you cant aford a DMP program even at 5 years I would check out Dave Ramsey and see what adivve he would give.  I kinnda know what he would say.

1. sell the Car

2. sell the Home

Yes you could do a BK but the credit effect is longer then a DMP.  I dont know anything about debt settlement but I wouldnt trust anything they said about its effect on your credit unless I spoke with someone who has done it hear.  Also BK could effect your job as well or the ability to get one so I would be carefull.

I know eaxtly how a DMP efefcts credit since I graduated one in November.  I would check several DMP programs.

[Anonymous]

Didn't she say dmp wouldn't take her?   vicki

edit:  Can you rent for less than 600. a mth?

Message Edited by greyhound2007 on 05-27-2008 08:17 PM

[Anonymous]

I tried 1 dmp company and they would not take me, which i have not read happening to anyone in these forums.  if anyone experienced this also, please let me know.
I am fortunate that my boyfriend makes 2/3 of the payments for the house, which includes mortgage and many of the bills. Unfortunatley, that 600 cannot be less, since i have an legal agreement to pay 1/3.  I would sell the car, but my job also requires it.  Reading this, I realize i have put myself in quite a jam. 
Thanks for the suggestions.  Perhaps I will call another dmp program to see if they will accept me.

[Anonymous]

It is so easy to get in over your head, esp. with CCs, to some it seems like free money esp. if you don't PIF every mth.

I would try another DMP and see if they can help you, esp. if there is no way you can pay at least min. payment on all cards.  That will never get you out of debt.  You have to be able to at least pay double min. on one card if not more than double payments.  Then you could go with the snowball plan.

Again I wish you the best of luck.  Vicki

[JayBeast]

I would have to agree with what several others have already said and try another DMP/Consumer Credit Counseling. Have you tried calling the CC companies and explaining your situation? All of my credit cards budged a little when I asked, although my DMP did more.

If you can find a DMP that is willing to help, go for it!!! I'm in one now and I'm finally starting to see the debt-free version of myself at the end of the tunnel and I couldn't be happier. My score broke 725 last week so they work!!!!

I would be wary of any debt settlement. Any plan (including BK) that involves paying back less than you owe is going to be a ding in your credit for a while, especially if the debt settlement company is less than reputable.

[Anonymous]

jaybeast, do you mind telling me which DMP company you are with?  Maybe I will contact them. 

[Anonymous]

marty, you said you used a DMP and know how it effected your credit report.  How did it effect it?