CC Debit Consolidation

[Vulcan1]

I paid off my wife's student loan three months ago and now my daughter comes to me with 39k in credit card debt. I refuse to pay any of it. She has a consolidation loan which will take her balance from 39k to 32k according to Lending Tree. They negotiate with the credit card lender to lower the amount and set up an account to deduct money from my daughters checking account once every month until all the cc accounts are paid off in 48mo. My question is, will the cc lenders cancel her credit cards? One of the credit cards is my wife's with my daughters name on it. I don't want it to affect my wife's credit since I just got her student loans paid off. If they cancel my daughter's credit cards then that's not good for her credit either. 

[ptatohed]

These credit card consolidation companies are generally not recommended.  They can't do anything you can't do on your own.  From my understanding, they'll ask your daughter stop paying the cards immediately.  Then, when she is in default, they will go to the credit card issuers and negotiate a settlement.  How do they explain that they can reduce her balance from $39k to $32k?  

[GZG]

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@Vulcan1 wrote:

I paid off my wife's student loan three months ago and now my daughter comes to me with 39k in credit card debt. I refuse to pay any of it. She has a consolidation loan which will take her balance from 39k to 32k according to Lending Tree. They negotiate with the credit card lender to lower the amount and set up an account to deduct money from my daughters checking account once every month until all the cc accounts are paid off in 48mo. My question is, will the cc lenders cancel her credit cards? One of the credit cards is my wife's with my daughters name on it. I don't want it to affect my wife's credit since I just got her student loans paid off. If they cancel my daughter's credit cards then that's not good for her credit either. 

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you need to revoke her access to your wife's card immediately, don't let her spend any more on there, your wife is 100% responsible for the payments on that card and if payments are missed it's her credit that will be impacted, not the daughter.

it is very likely a debt consolidation company will default on the cards as a means of "negotiating" lower payments, don't allow this

you can have her contact each of her issuers and see what sord of hardship programs they will allow, some might have them, some might not.

your #1 goal right now should be to revoke her access to your wife's card/account, pay that off and make sure your wife doesn't have her credit ruined with missed payments 

it is likely she might see credit limits slashed/card closes regardless if you pay them off due to the high balances and minimum payments, so paying off the balances is far more important than worrying about your daughter's credit