IN GOOD STANDING BUT MAYBE NOT FOR LONG

[joswan040404]

Does anyone have any experience dealing with creditors while still current on their payments and in good standing, no late payments, no defaults. My dilemma is that I have a couple of credit cards with very high balances and although I am current in my payments, I may not be able to maintaine that status much longer. I am wondering if anyone has worked something out with their creditors and they were willing to negotiate a payoff amount before having to default 60 to 90 days. Thanks

[llecs]

If you are paying a fixed amount on a debt but find that through time your expenses are going up and/or income down where making a decision to pay for housing or this debt became a no-brainer, then I would fix my budget. If income was an issue, then I would increase it by taking a second job, changing my own job, creating income on  the side, reallocate savings to debt, etc. If it was expenses, then I would cut entertainment, going out to eat, cable, travel, etc to where I would come up with an excess to through at continuing the payments without defaulting.

[joswan040404]

I understand and appreciate what you are saying. I have considered and acted on some of your advice. What I trying to get advice on is can I negotiate a settlement with some of my creditors while still in good standing because I know the bottom is going to fall out very soon and I will fall behind or maybe even default.

[Anonymous]

I was able to work something out with BoA and Gateway about 4 years ago.

It worked pretty much like turning a revolving account into an installment account.

They closed my account, we decided on a fixed period of time (mine was 18 months) and divided it out to where I had a fixed payment that I could afford.

For a long time on my credit report it said "Paid/Payment Plan" so Im sure it still counted against my credit score I just don't know if it was as bad as a CO. And also since I could afford the monthly payments we agreed on I didn't have to worry about late fees.

So... it is or at least has been possible to work out payment plans with some CCC but if your goal in doing such is to save your Credit Score then your best bet might be to temporarily increase your In-come to cover your out-go

[joswan040404]

Thank you. I appreciate the response and advice. Did you contact your creditors prior to falling behind and they worked it out with you or did you have to fall behind and miss a few payments before they were willing to listen? Thanks again.

[Anonymous]

I had already been behind when I tried it. I talked to them about it when they called to tell me they were going to charge it off if I didnt make a payment.

[joswan040404]

Good to know and thank you once again.

[Anonymous]

I'd love to investigate this problem more.  I am in the same boat.  I'm not sure if I call the CCC's and inform them of my possible issue with regard to future payments; they may jack up my rates which will leave me in a further mess

Where did you look for answers?  On this board? elsewhere?  Thanks

[fishbjc]

Your best bet is to call them and be up-front.  Ask for help.  If they decline to provide assistance, then you'll have to do what's best for yourself.

Chase just reduced my interest by 10% on a card.  Every little bit helps.