cancel
Showing results for 
Search instead for 
Did you mean: 

Options on debt programs?

Contributor

Options on debt programs?

Alright so I've been on one end of the spectrum to the next. I wont go into a huge backstory but I've accumulated a large amount of revolving credit card debt mostly due to medical bills that I put on my credit cards when my mom had cancer. I'm currently on track with my mortgage and car payments but I'll overhwelmed by all the minimum payments and interest rates on my revolving debt. I figured it out and if I pay the minimum payments on all my debts it will take 37 years and about 70k in interest charges. I contacted a debt management company (MMI) to see what my options are. They recommended a 5 year repayment program and I've researched some of the pro's and con's of doing this.

 

I don't know a whole lot about this and I want to get my score back to the 750s where it was. What's the right thing to do here; a management program? Try and contact the creditors and get the monthly payments adjusted and the interest rates?

 

Some wisdom would be great on this. I wish I had a good financial advisor right about now.

 

Thanks in advance!

Message 1 of 7
6 REPLIES
Valued Contributor

Re: Options on debt programs?

Get a debt consolidation loan from a credit union that's probably your best option.
Message 2 of 7
Contributor

Re: Options on debt programs?

Is that even an option if I've become deliquent on some of my accounts?

Message 3 of 7
Valued Contributor

Re: Options on debt programs?

It may be credit unions usually have free financial advisors you can definitely ask there. Worth a shot.
Message 4 of 7
Community Leader
Super Contributor

Re: Options on debt programs?


bman86 wrote:

Is that even an option if I've become deliquent on some of my accounts?


If you are maxed out and falling behind trying to keep up with the minimums, you may be a candidate for BK. Distasteful to many people, I get that - but its preferable to struggling for years as you fall further and further behind, doing little more than delaying the inevitable.

Most Recent FICO 8 Scores EX616/TU587/EQ607 01/09/2018 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
Message 5 of 7
Valued Contributor

Re: Options on debt programs?

Hi OP, what's the status? Have you decided? Hope all is well!!

Message 6 of 7
Established Member

Re: Options on debt programs?

If you're in a position to do it, see if you can find something with a lower rate and try to transfer what you can. Also, check into a consolidation loan (a CU is a great idea here). See what you can negotiate with your CD companies...they would usually rather work with you than lose you to default/collections. Sit down with your bills, list the balance and interest for each, and start attacking the highest interest account first. Even if you throw a little extra at it each month, every little bit eats away at the principal. And see what you may have around that you're not needing that could net you a little extra cash. If you absolutely can't get around it any other way, BK could be a last resort, and your home and vehicle are usually excluded. I know it's not easy, and it takes patience, but it can be done. Good luck to you!
Message 7 of 7