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Hi all,
Though I have a pretty good job, I can no longer afford to pay my credit cards, even the monthly payments. Bankruptcy is not an option at this point. In total I have 3 cards. All of them have around $10,000 to $12,000 balance on them. They're all very close to the limit because I've had some late charges, and also because the interest rates are so high.
I've heard that if I stop making the payments, and wait for a settlement offer or payment plan, and start paying again, it can be of some help. I am concerned with my credit, but I'll do what it takes to settle this. The only drawback is that even if they call and offer a settlement, I won't have the money for something like that.
Thanks in advance!
paying off the debts
Hi Marcus,
You should never stop making the payments, as this is going to affect your credit score negatively. You can rather try to consolidate your debts. In debt consolidation all your debts are consolidated into one, and you need to take out a single loan with a low interest rate to pay off all your debts.
If you can't negotiate with your creditors and start consolidating your debts, you can join a credit counseling company who will help you in handling your debts, They will first create a budget for you so that you can pay off the debts. However, if you can't seem to pay off your debts even with the help of budgeting, the counseling company will enroll you into a debt consolidation program. They will negotiate with your creditors on your behalf.
Hope this helps.
Thanks,
Aaron