How does one cut balance on credit card if unable to continue paying?

[Anonymous]

I need some help.  My sister called me today and had a question I was not quite sure how to answer.  She currently has a card that has a balance of approximately $6000 on it.  Her payments are around $150 a month.  She is a full time college student and is finding it difficult to continue to make this payment.  She was told by a company that help her cut her other two credit card balances in half that they were unable to take this card because they could not guarantee her that the balance would be cut in half.  However, they did say that she could do the same thing they were doing on her own.  So my question is how does one go about contacting  a credit card company when your debt is in good standing and get them to cut your balance in half or at minimum to reduce payment and/or interest????

[marty56]

Only the CCC can reduce monthly payment and or interest without impacting your credit.  It sounds like your sister went to a debt settlement company.  I dont know anything about them but I dont think that is good for her credit and I would assume that they would have the accounts closed which would impact her credit as well.

 She would need to get her credit  report ASAP using this website.

If she is having problems paying her bill, she might consider a DMP. 

[Anonymous]

Thanks marty56 for the reply.  I appreciate any help and I will keep you up to date as we take care of this issue.  Thanks again and Happy Holidays!

[LuvsRetro]

Have your sister call the credit issuer directly.  I know a couple people were able to negotiate a lower payment instead of straight default.  That was with BofA. 

Banks are willing to work out a debt repay plan instead of possibly never getting their money. 

[marty56]

If you can, post the name of the company that offered to cut the payments in half.  Maybe someone here has deault with them or if they are bad, others can stay away from them.

[Anonymous]

Thanks again, I will talk to my sister and find out who the company was.  Also I did suggest that she, my sister, try calling them but I told her to wait until I got some advice.  I think that is probably the best course of action.

Thanks guys if you have any other advice don't hesitate to write back.

Merry Christmas!

[llecs]

This is hard for several people to consider, but a part-time job paying a low wage could produce the $150 per month she needs. If she's in a college town, then she'll have plenty of opportunities.

Another option, if she's paying for school, would be to put school on hold and work full-time. There's nothing wrong with taking a year off and picking it up again after that. Use the money earmarked for school and pay down the debt and work, thereby saving for the following school year.

And as everyone said here, CCCs are open to negotiation. Just tell her not to use the card until paid.

[Anonymous]

Thanks for the post I appreciate any opinion.  As the suggestion you made might work for some students my sister is in her last year of school to be a teacher.  If she leaves she cannot return thus forfitting what she has worked so hard to accomplish. After doing some research it seems that her best option will be to contact and try to negotiate a hardship for reduced interest and payment.  Graduation is just around the corner.  Ya!!  

Keep up the good posts.  Take care and Merry Christmas.

[Anonymous]

why couldn't she work and go to school? I worked two jobs and went to school throughout my entire undergraduate career and still graduated with honors.

[llecs]

---

newjbw wrote:

Thanks for the post I appreciate any opinion.  As the suggestion you made might work for some students my sister is in her last year of school to be a teacher.  If she leaves she cannot return thus forfitting what she has worked so hard to accomplish. After doing some research it seems that her best option will be to contact and try to negotiate a hardship for reduced interest and payment.  Graduation is just around the corner.  Ya!!  

Keep up the good posts.  Take care and Merry Christmas.

---

Chiming back in. I remember in school taking 15 credit hrs in undergraduate work ten years ago pursuing undergrad work in two degrees in poli sci & econ and doing a dual program earning masters credit in econ for an additional 3-6 hrs. I was also working full-time (40 hrs) for a large newspaper. On top of that, I formed and owned a business (which is still growing today). And I remained active in school in organizations like student government and still had time to party on the weekends and play intramural sports.

We all have the same 24 hours; its how we use it that makes the difference.

Frankly speaking, if I had it to do over again, I'd skip the education. Though, I did meet my wife (good trade-off). I know taking time off for the education degree may not be the best thing, but your sister should have some extra time to work. Heck, a job earning an avg. of $5 (below min. wage, like waitressing) for 40 hrs per month (10/wk) would net her the $150 after taxes. I remember in school being broke at times, I always found money. I sold CDs, videos, my computer and stereo, and anything to turn a quick buck to pay for my biz, for example. Worst case scenario, you could always give her the $150 until she starts her teaching career. But as mentioned before, she's has to stop using that card until paid.

I hope I don't offend anyone by saying this, but Merry Christmas!