CC help...need some help from you guys!

[Anonymous]

ok...I recently lost my job a few months back and was using my CC's quite heavily. I was thinking of doing Debt Management to lower interest rates and OL fee's. The thing is I'm at a 611 FICO score and if I go w/ a Debt management plan, its gonna drop my FICO to like 400!!! I have never been late on my payments and the lower score is a result of high credit untilization. I filed BK in 2002 and thats about to fall off my CBR in soon, I believe.

Since then, I've found a job and work hard to pay the min payments on time to avoid any 30+ day reporting, and my CBR is spotless of any lates. But thats my problem, I'm only paying Min. payments, so I will never pay them off! I have no extra money to throw at them to get the amounts down since my new job pays less than what I was making. I feel really stuck and dont know what to do. I dont want do DMP! Is there any thing I can tell the CC companies or anyone have any suggestions??

[Anonymous]

your fico's wont get any better with bebt management because all your cards will be closed.

[laz98]

just wait it out, i guess.  i know it sucks when you have high utilization & feel like you aren't getting anywhere.  but there really isn't an easy fix.  i'm in this situation myself.

file your tax return early & use it to pay some of your debt down.  that would be my best advice.  you could always take a second job as well, even if it's only part-time & temporary.

i don't know what your APRs are like, you could try to get them lowered.  but if they are already fairly low, you don't really have a choice but to keep paying what you can afford.

the credit card companies aren't going to cancel any of your debt.

[Anonymous]

''BK in 2002 and thats about to fall off my CBR in soon, I believe.''

Darin, I feel your pain ...

Sorry, but that BK is a public records hit and will stay on for 10-years.  I filled back in '97 after a auto accident not of my making left me in a 80-grand hole and I had to file a dispute to have it removed from my TU and EQ CR's last January as it didn't automaticaly fall off either of those. 

As for the DMP, I thought about going that way earlier this spring and quickly decided that was likely to cause MORE problems than it would have solved. Actually, It wouldn't have solved any of my problems.

I talked to CareOne  and the girl told me CapOne wouldn't adjust the interest rate from the default rate.  I also had a personal loan with CapOne and BoA and they couldn't adjust those or put them under the DMP either.  My car payment thru Wachovia wasn't a candidate either.

Luckily I was able to refi my house (at a nice 9.25% apr for 30years, Thanks CountryWide) and take a loan against my 401k at work to bail me mostly out of that hole.   I'm still carrying 6-K on a Chase card that has a 2% apr for life. 

 As long as you can make the minimum payment,  I would suggest that you talk to a CCCS BEFORE talking to any of your creditors.  I've read plenty of horror stories from people trying to negotiate and ending up with closed accounts and 20 collection calls a day once they sense blood in the water. 

Also, the CCCS was a hard pull on EQ. 

The only other advice I can give is find part time work and learn how many ways there are to make and eat sandwich meats and PB&J for breakfast lunch and dinner.  Seriously, I've saved hundreds of dollars and lost 30-pounds, half of that is from STRESS I'm sure.

Good luck ...