Credit plan or bankruptcy?

[Anonymous]

  OK.  Have a Wells Fargo Mastercard, interest rate 23%. Have been able over the course of two years to get it down from 18K to just over 12K.  But got sick a few months back, and lost one of my two jobs. Have asked my boss for more hours (was working 55 hours a week; now working 24) but as of today don't know if I will get any (will know tomorrow, or so I am told). 

   Income now is approx. $750 per month; expenses about $650.  Have consulted with Christian Credit Counselors (the one that doesn't charge $20 a month), and they can get the interest rate down to 11% they tell me with payments of $322 per month (down from this month's current min. payment of $391).

  So I guess it all comes down to my getting extra hours at work, is that correct?, or am I in a situation where I should file for bankrupty?

  (BTW, live in a very secluded area in a very small town with few jobs, so if I can't get extra hours at my current job, there is virtually no prospect of getting work anywhere else.)

  Thanks. Any advice would be gratefully appreciated.

ChristopherAS

[FretlessMayhem]

I personally would hold off on BK until it is virtually impossible.

You've made fantastic progress so far. It would be a shame to let all your hard work go to waste.

Have you tried calling WF and asking them to work with you?

[Jesedmotherof5]

i agree.. put your est foot forward until you have no options left!

[Creditaddict]

a lot of banks these days have options to close out your account for more charges, but lock in your interest VERY low, sometimes 0% with fixed payments for 1 year.

I did this with Citi. I was paying $450 month on 22k at 10%, they locked me in for 12 months at $208, 0%.  Then in year 2 they locked it in again at like $250 for 2.5% or something.

Reported to credit report as open and paying as agreed but I was not able to charge on it and I had these fixed payments.

With credit crunch I think they are more willing to work with you to avoid bk where they get nothing.

[Anonymous]

How did you manage to get such a great rate w/ citi? I'm paying $200 per month for 12 months w/ 3.99% on a 15,900 balance!

[marty56]

I graduated a DMP plan in November.  I was able to make the payments for 4.5 years.  If you can afford to, I would use the DMP plan rather then BK.

Most DMP plans do charge a monthly fee and I used the Christian one that did and the fee was more like 40 by the time I finished.

I would avoid those companes that do debt Settement were they get the company to take less then you owe.  You have more protection under BK then going that route if you cant afford to use a DMP plan.

[phumanr]

Hello,

Do not file BK!! I have filed BK and it has to be your absolute last resort. It takes along time to get things back on track...and although you rebuild your credit rating and get credit, you are still very limited because you are blackballed with BK.

Phumanr