@Creditaddict wrote:
@Anonymous wrote:So, I have a credit score in the 660's range and no lates or bad marks at all on my credit report. The problem is that I have $35,000.00 in credit card debt and I have gotten to the point that I cannot continue paying only the minimum payments of $1250/month and getting nowhere with paying them down. I am so frusterated and I don't know what to do. I had become addicted to obtaining credit cards and have many of them...my most prized possessions are my numerous citibank, chase and discover cards with high limits and no yearly fees. I will never be able to get a good credit card again if I ruin them. I had spent the last few years since buying a home paying one card then using it for purchases the minute the payment cleared. Everything I have is maxed out or over the limit.
I called a debt negotiation company to get some info. It kills me to ruin my credit and lose these cards that I worked so hard to obtain. But I also am not getting anywhere. I cut up all cards but it is a little too late. Any thoughts or advice on what to do? Please help!!
If you want to just not pay until your credit is so terrible that creditors either take 30-40% after 3-5 years or sue you and hope at some point you have to do soemthing like a mortgage that probably requires you to pay the judgement... but other wise DO NOT use a "Debt Negotiation" You will be forking money over to them and you won't have that money to pay if you get sued etc. until they work with this terrible agency you hired and sent your money too....
You can't save your Fico, Save the maxed out cards becuase you won't be able to get the cards again later, or not file BK.
If being debt free with not harming your credit then this is what you have to do:
You call each bank and ask to speak to "Financial Hardship" or "Programs they have for Financial Hardship" These days they ALL have departments set up just to do this sort of thing all day long. Some banks will work with you just because you call in and say you are getting to end of being able to keep up. Others will not work with you until you miss a payment... banks like USBank only requires 5 days late of payment to be able to talk to Financial Hardhsip and work out a reduced interest rate/reduced payment. Many will be short term 6-12 months of 0-10% interest maybe and a 1% payment or something... others like usbank (I use them as example because I did it... I did a 12 month one that dropped me to 0% and sliced payments by about 60%, after 1 year it came off the program and I missed the next payment and called back in and they offere a 5 year payment plan 1.9-4.9% interest based on Im not sure what (I got 4.9%) fixed over 5 years... The account was closed but they report to credit it's still open with no notations that you are in a plan... payment actually went up a bit but with a 5 year payoff on $23k it felt great, especially when my payments use to be $450 and interest was $230!
Anway Chase didn't work with me back at same time as USBank, they said I didn't make enough money to pay for a "Financial Hardship Program" meaning the numbers I gave them did not make up enough money to make the $200 payment so they coulnd't help me even though my current payment was over $400... fast forward 2 years and chase came around to realize the thought process in the past was working out like foreclosures (Not paying mortgage holders had a lot more pull then banks thought they did and when they failed to help so many restructure loans people just said fine, won't help me, I won't pay and I WONT MOVE OUT! Now you have "Some" banks coming back saying please move out and we will write you a check for $25k... Same kind of thing for credit cards...
use your other cards against them... This is what I can do, if you can't help or get on board you will go to the bottom of the list of who gets paid first...
it's touchy subject to not pay and an even bigger confusion on lates showing on credit and fees, etc. you have to go over 60 days before the first 30 days reports to credit and in addition you are talking about 1 late payment, that even without a plan you could get a courtesy waive on if first or second time.
like I said some banks will offer the help if you ask for it while current... but in the end, I think many miss the idea that you are looking at this or BK so saying it's not ethical or something to purposely miss a payment to try to get a bank to work with you more is silly if you ask me... you want to pay, but if they won't work with you sounds like you will bk... your credit will be just fine and if you have all the cards paid off in 3-5 years and none of them were late... your accounts might be closed but you can get all new accounts... probably better then these.. once debt free!!
+1 call the banks and get them to work with you
Most will offer reduced rates. They would prefer less money over no money.
US Bank is a good example. Even their standard customer service has the authority to lower your interest for 6 months.
Stay away steer clear of debt counseling, debt consolidators, debt negotiators etc. They cannot negotiate a deal with your creditors better than you can. They will take your money and have your accounts sent to collections. +1 on the hardship program offered by creditors. Even crap1 has this program.
Starting Score: 585
Do you have no assets to secure a loan against at a much lower interest rate most likely?
What about a loan from a family member?
A prior poster was likely on point in stating that reducing your expenses and come up with a budget is required. On the assumption that 1250 was extra, you'd pay off your debt in 4-5 years which is better than either a DMP it a BK. If that's min + months charges, you need to look at reducing your monthly expenditure.
You have a 660 score even with the debt; talk to some credit unions as well and see if they can do a consolidation loan for you.
I don't think you are anywhere near the bottom yet, but a hard look at your finances and then investigating further options would likely do you a lot of good.
What about a loan from a family member?
A prior poster was likely on point in stating that reducing your expenses and come up with a budget is required. On the assumption that 1250 was extra, you'd pay off your debt in 4-5 years which is better than either a DMP it a BK. If that's min + months charges, you need to look at reducing your monthly expenditure.
You have a 660 score even with the debt; talk to some credit unions as well and see if they can do a consolidation loan for you.
I don't think you are anywhere near the bottom yet, but a hard look at your finances and then investigating further options would likely do you a lot of good.