Is there a way to work with Credit card companies to lower credit card bill without filing bankruptcy?

Question

I owe aprox 40,000 to a total of 4 cards, anywhere from 18% to 33% interst. I do not want to file bankrupsy due to owning a house with my daughter.

Answer 1

Yes, they are called credit counselors. Do a search on-line and you will get many many willing participants. I like Cambridge credit counselors.

Answer 2

Stop -- first, do not listen to Joe. Your situation will NOT be the same if you do nothing versus file bankruptcy. Bankruptcy allows you either to legally restructure your debt OR discharge it, depending on your circumstances. If you file bankruptcy, there is at least an end in site, even if it is not pleasant. Doing nothing is a good way to get you assets and income garnished and continue to live in fear of every phone call and letter!

Second, yes, credit counseling works for some, but in many ways in may NOT be preferable to bankruptcy. There are fees involved, you need to be careful to find someone reputable and it can (depending on how it is done) damage your credit even more than bankruptcy.

Let me offer an alternative suggestion. There is a fantastic forum out there called www.creditboards.com (There are NO FEES and no PROFITS for the advice like some of the websites you are going to get from folks!)

Go there and start reading, then keep reading and read some more. You didn't get into this mess in a few days and it is going to take more than a few days to get out of it. But once you have more know knowledge about credit reporting agencies, credit counseling services, and ideas on how to start rebuilding your life, you will be on the road to doing so.

Answer 3

I totally agree with allee's advice.

I can't give you much specific advice without more information about your finances. I am also confused as to why you are worried about filing bankruptcy "due to owning a house"...?

You obviously are getting some poor advice. Bankruptcy is a means to get out of debt WITHOUT losing your home, car, and most of your possessions!

You think one of those "credit counseling" companies you heard about is going to help you? Sure, you heard all their claims that they can eliminate 60% of your debt and cut your interest rates way down! It's in all their radio commercials, so it must be true, right?

Let me tell you something. I've helped a lot of people with their debt problems over the past couple of years. I watched them get suckered into these scam companies and spend lots of money, only to see their credit get ruined even more, and find their claims fall way short of being the truth.

Wanna test me? Go to a credit repair agency and demand that they put their promises in writing. See how many will do that.

What you need to do is sit down and make a very strict budget. No more cable tv, Starbucks, movies, dining out, or entertainment.

Every time of "disposable" income must be placed toward your debt. How much do you think you can find?

You owe $40,000. Lets pretend that you just woke up in the Land of Oz, and your creditors agree to freeze your balance, no more interest and late fees. To pay off this debt in 5 years you will need $666 a month. Or in 8 years you need $416. Can you find that much money in you budget?

If not, you are really kidding yourself.

On the other hand, if you filed for Bankruptcy, you may be able to qualify for Chapter 7. If not, you will be placed on a Chapter 13, where you (again) will be forced to go on a very strict budget. All of your disposable income will be put towards your debts. But this time, your interest and late fees are waved. You pay whatever you can over a 3 year period, and after that the remainder of the balance is "discharged".

Credit rating? Sure it's going to be destroyed with a bankruptcy. But what do you think it looks like now, with 4 overdue credit cards listed on it? And I'm sure it's only going to get worse.

Therefore, I would suggest that you at least find a bankruptcy attorney who will give you a free consultation and discuss your situation with you. That won't cost you anything.

Answer 4

All you need to do is to call the credit card company and arrange w/one of their agents an affordable monthly payment, they will shut you off from being able to charge, but you won't have to claim bankruptcy... and there are credit card companies who offer a low apr if you merge all of your transactions on to one may be beneficial to u... Good luck...Been there done that... with about
25k in credit card debt... Watch out for the hidden fees, though..and do not go thru a company called Debticated Consumer Counseling... they are going thru a law suit right now...

Answer 5

Go to a debt consolidation company and talk to them. There are many to chose from in the Yellow Pages. They can lower the interest rates and you pay them once a month a smaller monthly fee than what your paying now and it can be paid off sooner when then the damn interest rate isn't ridiculously high like 33%!!

Answer 6

There are lots of ways to solve this problem ranging from debt settlement, credit repair, refinancing the house coupled with debt settlement, negotiating the interest rates lower, etc.

Check out the free situation evaluation form at:
www.totaldebtsolutionsllc.com

Answer 7

You wouldn't need to file bankruptcy anyhow. If you make lower payments or stop paying altogether your situation would still be the same regardless of whether you decided to file bankruptcy.

Answer 8

i'm sorry which you're having those problems. i think of that the government basically we could the unfastened industry equipment artwork itself out. In concept, a sparkling mastercard employer would desire to enter the industry with a lots decrease interest value for seniors if in actuality they the rates being charged do not adventure the threat that the mastercard companies are taking over. (additionally, area of the upward push is using the government elevating rates, yet it somewhat is a small piece of it) My advice is which you consult from a financial representative who could probably advise which you consolidate your loans with a load on your place (in case you own one). rates of interest on homes can in lots of cases be around 6% or 7% vs the extremely extreme rates the mastercard companies can charge. in case you do not own a house, there are professional which could artwork with the mastercard companies for you, in lots of cases getting the month-to-month money decreased. i'm hoping this helped.

Answer 9

Most likely they are not going to work with you but you can try. Don't go bankrupt it is not worth it. get into some sort of program. ether Ccs or negations
Kourtnie Donihoo
The E.D.A. Group
Debt Analyst