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scottinred

Hi everyone.

I am glad that I found this forum.
Past 5 years since I started retail busniness, I'v been in steadly deeper into credit card debt.
I have 4 personal credit cards totaling $78k and 5 business cards totaling 40K and my wife's one card 8k.
I do not want to loose business or file BK. All of my cards has 29 to 31% APR. Can I do debt settlement on 5 personal cards while enrolling 5 business card on credit councelling? If i stop payments on personal credit cards I can save up to 2k/ month.
Thanks in Advance

Scott

Posted: Tue Jan 15, 2008 6:55 pm Subject:

Depends. Quite a few "business' accounts are backed by you, personally. If your name is on it, it's probably linked to you. I deal with a lot of "Business" cards and have found that 90% of them are just customized personal credit lines to tailor to a small business owner or what not.

Is your business a LLC?

scottinred · Posted: Tue Jan 15, 2008 8:30 pm Subject:

No it is P.C.
I found out today 2 of my business CCs are AmEx and they will not co-operate with me for hardship or reduced payment etc. I will try to DS with my personal CCs first then I will deal with Business CCs.
Meantime I am hoping that I can enroll Consumer credit counseling or something to minimize monthly payments to maximize monthly savings for DS for personal CCs. Or am I hoping too much?

Thanks

Scott

Scottinred · Posted: Tue Jan 15, 2008 8:33 pm Subject:

By the way All business crds are either backed by me or my wife.

Thanks

Scott

Posted: Tue Jan 15, 2008 8:44 pm Subject:

I've not seen much luck, personally, with a hybrid program. It is hard to do both because as you become past due on some accounts, it affects ALL of your credit. Interest rates go up, etc. I've heard of people who have paid on time for 20 years, miss one payment on their insurance, and suddenly their interest rates went up on all of their unrelated cards.

You will probably have more success doing one or the other. DS is the most agressive, but the most effective IMHO.

Posted: Tue Jan 15, 2008 10:23 pm Subject:

hello, we have both business and personal cards, we are doing DS on the personal ones and I'm still making payments on the business ones, actually I paid the smaller business one off. These are personally guaranteed by myself and my husband. So far I haven't seen any interest rate change on my business accounts, but this may happen if they randomly pull your credit report for some reason. We are about 8 months into settling the personal accounts and no change yet to our business CC. So this can be done, but as the previous poster said, insurance rates, etc will be affected by your personal credit, so if you do DS, just be prepared for a big hit to your credit. We knew this going in, but it was the only way for us to start getting back on track.

Posted: Wed Jan 16, 2008 9:13 am Subject: Debt settlement multiple credit cards

Scott,
Isn't it amazing how quick these banks are to say no when you need a little help? You would think with the way the economy is right now they would be willing to work a little more with us but they aren't.

I am up there with you as far as debt amount goes and just the minimums alone combined with high interest is too much. I am glad to see you are looking into your options. You will find a lot of valuable info on here. Good luck in whatever you decide!

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