debt $75k
Date: Mon, 02/12/2007 - 13:44
i have 3 credit cards with a total of $75k debt.
all cards are current two (60k) at zero interest one at 8%.
have about $3000 a month to pay toward cards.
have about $25,000 cash on hand.
should i pay the 25k in cash and keep paying the $3k a month to wittle the $50k down or should i try to settle the debts with the creditors for a reduced amount. therby in most likelhood damaging my credit rating. possibly and likely creating very high rates on remaining debt beyond the $25k i can pay off now!
any similar situations? how were they resolved? it seems like the creditors aren't going to be to concerned with my situation and will just refuse to cooperate with any type of a settlement and then just raise the interest on the cards i have... but i'm not sure!
thanks!
It doesn't hurt calling the companies and make a proposal. Settl
It doesn't hurt calling the companies and make a proposal. Settle up those accounts that are adding up with high interest rates.
When you show them every intention to pay your debts and the high interest rates is bothering you, they will likely offer you some arrangements. If you can't pay it now because of existing rates, they need to understand how will you pay them later? You have to renegotiate with your point and get the results in your favor.
Settle the accounts if credit scores is not the biggest concern for you at the moment. You will become free of your debts. You can talk to a counselor about the consolidation plan. The repayments will be slightly higher but they should be able to stop any interests from rising further and waive off the late fees. If you can afford the payments in the consolidation plan, your credit will also be viewed nicely by your future lenders.
