Credit Repair
Reducing credit card debt?
I am on a budget, successfully last two years. Before then, we racked up nearly $9000 total in credit card debt on five cards. (home repairs, stuff). We have paid our credit cards on time, and have NO credit cards now. My problem, I am aggravated. Before my budget, I was late paying on two cards , and all cards jacked my rates to nearly 30%. So, even paying on time the last two years, the companies still deem me 'risky' since I only pay minumum. I still owe $9000!! I asked for a payoff amount, since half of what is owed is interest and penelties. They all say no, nor will they reduce the interest rate. (heck, they have a gold mine with me!) Anyone have luck with a letter asking creditors to take a lower payoff amount ?? I am caring for an ill son so i can't work, and my husband's job cut back so we are getting half of what we were earning. I don't want to do debt consolidation, since they tend to be a scam. If I can't negotiate a lower payoff amount, how can they?
Public Comments
- I am sorry.... we all have our share of troubles. Its awful when all those creditors stand in the wings like vultures waiting to pick your bones!! Nobody wants to give you a second chance. Hang in there.. You have to think positive and trust that positive energy comes back to you! I wish you the best!
- Consider a voluntary debt management program instead of consolidation / payoff. Check out the site below for a legitimate DMP like Consumer Credit Counseling. You have shown you can do it.. CCCS will lower your payments so you can get to ZERO debt. What do you have to lose???
- I am very sorry to hear about your son. I wish him a speedy and complete recovery. There are other options to your problem. Credit card companies are in a lot of trouble right now because of their business practices. Look for serious changes in how they conduct business in the near future. However, this does not help you now. The best thing that I can think of for you is to turn the tables on the credit card companies. Do to them what they do to you. It is legal and, if you ask me, ethical. If you have any further questions regarding this or any other credit issues, please feel free to contact me at nebula7693@yahoo.com
- There is a wonderful book called The Total Money Makeover.....a proven plan for financial fitness by Dave Ramsey. Get the book and follow the plan. It takes a lot of hard work and discipline....but you can be debt free within seven years outside of your house payment. Also.....if you have things like cable, cell phones and a land line ( get rid of one or the other), 2 car payments things like that get rid of them. The money you will save can be paid on credit cards....and you are def. on the right track not doing a debt cons. they are a scam and just screw up your credit even further!!!!!!
- If you own a home, a secured debt consolidation loan may be right for you. This type of loan is essentially a home equity loan which is used to pay off your other creditors. Secured consolidation loans help many consumers by consolidating all of their debts into a single monthly payment with a lower interest rate and payment amount. However, be careful before you borrow money against your home to pay off credit cards and unsecured loans; you are converting what was previously unsecured debt into secured debt. This could cause you problems down the road if for some reason you are unable to make your payments, or if life circumstances force you to file bankruptcy, as you may not be able to discharge the secured debt as you would unsecured debt. However, secured debt consolidation loans work for many people, so this is an option to consider carefully?the Bills.com Savings Center is a great resource to help you find a lender for this type of loan. Also, a good resource is... http://www.safelinked.info/jump.php?link=debt Best of luck to you.
- I'm very sorry for what you and your family is going through. If you belong to a church maybe they can have a fundraiser for your family to help with your bills. Try writing a letters to your creditors, to lower the interest rate. I understand the problem with only being able to make minimum payments. Keep the faith know that God is with you. I pray for your son will have a quick recovery. Be blessed.
