Discover credit debt- where to start?

[Anonymous]

I currently have $15k on my Discover It card at around 25% APR with a minimum monthly payment of $430.

As of now, I am current on the account and may be able to make one more payment but I am completely tapped out. There is no way I can maintain payments with my income anymore. I also have a Citi card with $7k balance but the APR is at around 11%/minimum monthly is $130 so I can manage that. I'm paid cash so proving a hardship seems like it'd be hard because I only deposit what's needed to pay bills.

My question is, where do I go from here? I can access a lump sum up to maybe 60-70% of the balance but from what I've read they won't settle with me being current. What can I expect if I call and explain my situation? Do I go delinquent and then try to settle with them?

[dynamicvb]

You did not mention your current fico scores. Where are they now? 

You may can call Discover and ask for a rate reduction. I would not advocate an intentional default as that will kill your scores and with 15k, Discover will likely sue and not be interested in settling. I'm not sure how Discover is with granting any rate reductions and perhaps someone else has experience with this and whether they may do one. 

Depending on your scores, you may be able to get a loan from a local credit union or somewhere and use that to pay them down. I don't like borrowing from Peter to pay Paul, but in this case, it may make sense especially if you are getting to the point where you may start missing payments. You mentioned a lump sum of 70% or so, why not access that now and throw towards the Discover balance. That would bring your minimum payment down a good bit. Then you can snowball both of them at the same time by paying more than the minimums.

[Anonymous]

Current FICO scores are decent, in the 700-715 range. I've looked into getting some sort of loan but with my income being cash and not direct deposit/no paper trail, I don't qualify because I have no proof of income. I'm only making around $1000/mo so I don't believe I'd qualify for much anyway.

The lump sum would be a loan from a family member which I'd then have to start paying down, so it wouldn't reduce my monthly payment by much if any. However it would reduce interest greatly. It's definitely an option.

[dynamicvb]

I was going to suggest you look into a balance transfer card that has an intro rate, but not sure you would get enough of a limit to make a dent with the income that low. Your scores could get you one, but not sure about the income piece. 

[BigNorm4Life]

With your scores... you got some leverage to demand of lower interest rate or you will transfer the balance and close the card....some!

[FireMedic1]

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@Anonymous wrote:
I currently have $15k on my Discover It card at around 25% APR with a minimum monthly payment of $430.

As of now, I am current on the account and may be able to make one more payment but I am completely tapped out. There is no way I can maintain payments with my income anymore. I also have a Citi card with $7k balance but the APR is at around 11%/minimum monthly is $130 so I can manage that. I'm paid cash so proving a hardship seems like it'd be hard because I only deposit what's needed to pay bills.

My question is, where do I go from here? I can access a lump sum up to maybe 60-70% of the balance but from what I've read they won't settle with me being current. What can I expect if I call and explain my situation? Do I go delinquent and then try to settle with them?

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If you can get the 60-70% paid down with the lump sum. The payments will be much lower than $430.  Lower balance. Lower percentage payment. Whats the limit on the card?