Have a couple of credit cards getting the better of me

A company called "superior debt" called me to work out a financial plan. It goes something like this: 18 months = they open a savings account and withdraw a certain amount from my checking account and in the meantime my payments with MBNA are delayed for about 3/4 months (i.e my credit report is messed up) so they can negotiate the balance, with no interest, and pay it off. It sounds nice in 18 months but what do I do in the meantime. I'm so stressed about having such a low score in these 5/6 months. Any suggestions?

Thanks Mary! You are so sweet I just saw your message b/c I hadn't turned to page 2, silly me, still trying to get used to this
You think I should keep calling?

Leave it on Superior debt relief and they will work out arrangements with your credit companies. From your side, you should be sure of sending regular monthly payments to the savings accounts. It takes some time for the negotiations to show its effect. Once the creditors have accepted your proposal, money will be sent from the newly opened account. You just have to be regular with your monthly payments.

Do not stress yourself in this situation. Try to save out some money from your daily expenses. Deposit these savings towards the new account so that you don't have to panic at the final stages of the negotiation. Stick to your budgeting plans and you will become debt free within the quick time.

Hey, no problem! It took me a while to get used to page 2 as well

I always recommend debt consolidation over debt settlement, but you have to do what is right for you!! I think that you should at least give it a shot with calling the creditors again. You have a good chance of getting somebody on the phone who has a heart and can understand that sometimes people get into a jam!!

~Mary

Gretchin, you don't think me being behind in payments for 4/5 months will be a problem?

If you wish to go with a debt settlement program, you will have to accept this procedure. That's the way it works! Ultimately, the creditors viewing your file in the future will like to see the past accounts as paid. This way, they will be assured that you won't be a future risk to them after granting new credit. Looking at your present financial situation, you have to make a choice whether to choose a consolidation plan or a settlement plan. The total amount to be paid back in a settlement program will be largely reduced. Give a deep thought before you make this financial decision. Ultimately, I am opening up avenues for you to become debt free.

here's a question for you guys...

on calling the credit card companies and saying you just cannot in any way, shape, or form make these minimum payments at 29% (hubby had to have surgery w/no medical insurance last year, so we are paying boatloads for that, too), would that tip them off that your next step is consolidation or settlement if they don't lower the interest? and what could they do at that point, if anything? i'd really like to try that first before i take the next step...

thanks for any replies!

I'd let them know exactly what the situation is, that can only work in your favor, as far as I am concerned! Hopefully you will get a sympathetic person. Just let them know how much you have enjoyed using their card, you are a loyal customer, you tell your friends to apply, etc. and you have a good shot of getting some help with it

~Mary

Guest, whether there are facts behind your reason or not, ultimately, its clear that you are not able to pay the debt with high interest rates. This will force your accounts to become delinquent. You will need to explain and negotiate with them for lower interest rates. They should understand you taking care of the matter. Besides, if you default, they won't have their money anyway. They will think about giving you repayment options. The twelve guidelines of debt solution have been put nicely in this page.

http://www.debtconsolidationcare.com/debt-solution.html

I agree the person you spoke to must have been new or something, because I have never had a credit card that let you use it when you were over your limit. I can't imagine one that would---has anyone out there ever had that experience?