Rebuilding Your Credit

[Ash2629]

Due to a major illness resulting in surgeries, chemo, radiation & dr requiring early retirement(55 yrs old) my husband & I acquired major CC debt which we have been paying on time but we got notified by Capital One they are increasing all out cards to 22% from 14-16% due to economic climate and lower credit scores brought on by cards being close to maximum limit or we can refuse and payoff cards.  Do we have any other option? What effect on credit score does debt companies have on score? Should we try to request settlements ourselves? Help I just don't know which way to go on this.Something will have to give we cannot continue $900 min CC payments on 10-12 cards with our income down by 40% since my illness.  Please advise.  Ash2629

[oracles]

HI Ash and welcome to the forums

I am very sorry for your previous health conditions and struggles.

I think you should definitely read this thread and you may find it very useful for your situation.

FTC webpage: Knee Deep in Debt

Unfortunately many credit card companies are either increasing your apr or reducing credit limits. They are also closing credit cards. Because you have many credit cards near the limit, your util% is very high and therefore bring your score down considerably.

If your goal is to save money then I would advise you to opt out of the increase to your apr's and continue to pay the original APRs. It is not like you will be losing credit because they are near the limit anyway and you will be paying off the interest and not the balance.

If you are too over your head with bills then definitely read the thread I placed at the top and maybe some of those solutions maybe able to help you.

Take a deep breath and pace yourself.

Don't worry, just like you came through a difficult time with your health, this too shall pass and you will conquer.

Hope this helps

Message Edited by oracles on 02-13-2009 03:22 PM