large credit card debt and unsure how to proceed

[Anonymous]

My husband and I have a large amount of personal and business credit card debt. What should we do? File for BK, look for a debt management company??? Please help. If I should look for a debt management company how do I find a reputable one?

[FretlessMayhem]

Hello HS, welcome to the forums!

I am of the opinion that a BK should be reserved for absolutely last. If you and your husband are able to make payments, even if it's just a little bit, I would recommend using a DMP (debt management program). 

There are reputable DMP companies out there. Unfortunately, I can't recall the name of the popular one off of the top of my head. Hopefully another member can chime in. 

The name had something to do with religion or Christianity. Like CCC or something like that. 

[Anonymous]

I don't have any suggestions, but I wanted to mention that you might want to post this over in the Rebuilding forum, and give some details about your balances. You'll get lots of good advice on how to proceed. Good luck!

[Creditaddict]

do you want to post all your debt:

credit card company

Credit line

Balance

Interest Rate

How much your minimums total each month and how much you can pay in total each month above that if any? 

[marty56]

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@FretlessMayhem wrote:

The name had something to do with religion or Christianity. Like CCC or something like that. 

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I used that one and I sent the OP a PM with the URL.

You might want to also check out Dave Ramsey.  He uses the so-called debt-snowball plan where you make minimum payments on all but the credit card with the smallest balance and you pay as much as you can until its paid off.  then you attack the next smallest balance and so on.

Dave is kinda hardcore and his ideas arent for everyone but he has helped people get out of debt and perhaps the OP can check his site out and decide for herself.

Message Edited by marty56 on 12-31-2008 02:45 AM

[Anonymous]

Marty makes a good point, although sometimes Dave is a nut (or acts like one), taking care of the small cards, and getting them paid in full seems like a good plan. It feels better accomplishing something, and paying off a card will help you feel like you are making progress.

[Anonymous]

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@marty56 wrote:

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@FretlessMayhem wrote:

The name had something to do with religion or Christianity. Like CCC or something like that. 

---

I used that one and I sent the OP a PM with the URL.

You might want to also check out Dave Ramsey.  He usses the so-called debt-snowball plan where you make minimum payments on all but the credit card with the smallest balance and you pay as much as you can until its paid off.  then you attack the next smallest balance and so on.

Dave is kinda hardcore and his ideas arent for everyone but he has helped people get out of debt and perhaps the OP can check his site out and decide for herself.

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The other thing you can do is still the snowball, but pay mins on all but the one with the highest interest rate and the pay as much as you can to it.  Then attack the next highest instrest rate and so on.  

That will save you more money in the long run.

[haulingthescoreup]

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HS09 wrote:

My husband and I have a large amount of personal and business credit card debt. What should we do? File for BK, look for a debt management company??? Please help. If I should look for a debt management company how do I find a reputable one?

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Hi, HS09, welcome to the forums.

Look up at the top of this board and click the stickied link called "FTC webpage: Knee-Deep in Debt." It has a good discussion of your various options.

[marty56]

Also stay away from the Debt Settelment companies.  They will trash your credit and rip you off.