Can you place who the Creditors are next to the accounts listed?
Creditor name/Credit Line/ Balance/APR
@Anonymous wrote:Long story short, Covid, some devastating personal life events, and other obstacles have helped me rack up around $20,000 in credit card debt between 3 cards. I know I will eventually default on this amount and paying the minimum with interest is unsustainable as well. So my question is what should I do?
I've put about 15 hours of research into this which has landed me on this forum. I started off calling non-profit debt consolidation firms that negotiate with creditors and you pay a monthly fee for their services. However, I've read mixed reviews/opinions on these companies and if they actually really do anything.
I have also just recently talked to a company **Mod Cut - Removed per myFICO TOS** that was helpful and coached me on how they could help me with the default process with an attorney and negotiate a better settlement. They were actually very nice and helpful explaining everything. For me, it seems like a good option for a relatively small upfront fee of $400 and a back end charge of the percentage they save me in the settlement. Using them would have me grant one of their lawyers power of attorney to act on behalf in negotiations with credit agencies/collectors. I'm unsure if this is a good idea.
As with anything nowadays, I did some research on them and they have an A rating with BBB but I read a few negative reviews on Trustpilot stating that getting a local attorney might be better (in much harsher words) and recommended checking out this forum to get advice about debt situations.
So here I am. And in the age of this internet it's hard to know who's legit and if they're telling the truth about their experience. In conclusion, any advice is appreciated on how to deal with this debt. I haven't missed a payment ever yet and am merely trying to be proactive and prepare myself for the inevitable default or a way to avoid it completely without drowning in interest. My credit score is not my main concern now and it's the debt itself. Thanks in advance for any help.
Without knowing your financial situation as a whole, 20k isn't that bad in this day and age. Sure it's a daunting number when things are in a dark place in the present time. However, There are ways of attacking this that will ease the pain. The first thing I would recommend is... save your money with the debt consolidation con artists, and invest several more hours into forums/threads such as these. There are many, many, people around here that are more than willing to help for no other reason that they like to. Take advantage of it, you will learn more and save yourself thousands if you listen intently. At the end of the day, your answer still may be to "default". But there are things that can be done to put a band aid on it and head yourself in the direction of repair sooner rather than later. Take heed my fellow FICO member.
Starting Score: 547EX
@Anonymous wrote:Long story short, Covid, some devastating personal life events, and other obstacles have helped me rack up around $20,000 in credit card debt between 3 cards. I know I will eventually default on this amount and paying the minimum with interest is unsustainable as well. So my question is what should I do?
I've put about 15 hours of research into this which has landed me on this forum. I started off calling non-profit debt consolidation firms that negotiate with creditors and you pay a monthly fee for their services. However, I've read mixed reviews/opinions on these companies and if they actually really do anything.
I have also just recently talked to a company **Mod Cut - Removed per myFICO TOS** that was helpful and coached me on how they could help me with the default process with an attorney and negotiate a better settlement. They were actually very nice and helpful explaining everything. For me, it seems like a good option for a relatively small upfront fee of $400 and a back end charge of the percentage they save me in the settlement. Using them would have me grant one of their lawyers power of attorney to act on behalf in negotiations with credit agencies/collectors. I'm unsure if this is a good idea.
As with anything nowadays, I did some research on them and they have an A rating with BBB but I read a few negative reviews on Trustpilot stating that getting a local attorney might be better (in much harsher words) and recommended checking out this forum to get advice about debt situations.
So here I am. And in the age of this internet it's hard to know who's legit and if they're telling the truth about their experience. In conclusion, any advice is appreciated on how to deal with this debt. I haven't missed a payment ever yet and am merely trying to be proactive and prepare myself for the inevitable default or a way to avoid it completely without drowning in interest. My credit score is not my main concern now and it's the debt itself. Thanks in advance for any help.
1. You should not use that company and should not give anyone a power of attorney.
2. Your situation is not bad enough yet to warrant drastic measures.
3. IMHO you should get a second job, and use the snowball method towards your existing credit card debt:
Snowball method is:
1. Stop using cards.
2. Pay off smallest balance first, then next smallest, and so on.
3. On other cards pay minimum + something each month.
As each balance turns to zero, that will free up your remaining monthly cash to apply to the next smallest balance.
@Anonymous wrote:At this moment, the methods you mentioned aren't feasible for me. 6 months from now could be a very different story but for now I can't contribute to paying off these debts. Thus, I'm wondering if it's best to default, file bankruptcy, or if there is a more nuanced method to take a hit to my credit score but end up paying a lot less in total.
1. Defaulting is not an option. It is an option to call each lender, and try to work out a hardship plan for their card. This will probably wind up being a more nuanced method of taking a hit to your credit score, but paying less in total, and doing less damage than defaults would do.
2. Bankruptcy usually costs money, money you could apply to the payments instead. Bankruptcy is great, but has a long term effect. Since things might be better in 6 months you might want to think twice about that.
3. I'm sorry getting a 2nd job to supplement your income is not an option.