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My husband has been laid off recently. We have four cards in both our names. We do not have enough to pay the dues, except for some savings we will require to run the household. Till now we have been current with all our account. I do not want to file for bankruptcy; I know it will spoil all our chances of getting credit in future. Do I have any other options? If we wait till my husband gets another job, there will be a huge interest on whatever is due.
Hi abelina,
I agree with you that filing for bankruptcy will hurt your credit records. Instead, you can ask your creditors if they have any hardship programs. A "hardship program" is an agreement with your credit card company, where they offer you with reduced rates of interest and in some cases, lower monthly payments.
You can also try to settle the debt. You can negotiate a pay-off amount, which is 40-60% less than the due amount. If the creditors agree, you should send them a Pay for Deletion Letter. After receiving this letter, your creditor should reply stating on their company letterhead that they agree to the terms of payment. They will report to the credit bureaus, as soon as you have made the payment.