This is a really good question? What do you think?

Jack - thats really what I tell people. Call your creditors yourself first, to see if they'll work with you, if not, then you should work with your settlement companies... Often, those companies will say that they can get a better negotiation than you could...but think about it this way:

Your card will only go down X%... the settlement company will get it down X + 4%, but charge you $20/month... doesn't it kind of work out the same?

See I agree with you, have you had any experience that you can share with me?

You aren't in default or anything right?

Are you under your credit limit?

I am not in default and I am under the credit limit. I have one account with Juniper bank the other Bank of America. I am looking at about 25K in debt.

Are you having trouble making the minimum payment?

I can make the minimums but the interest rate is getting ridicious and the amounts arent going down. Because I have so much credit out there my debt to income ratio is all off wack. I just have to do something..

ok...you ready???

your credit seems like its in good shape. I'm sure you get offers to get new cards with rates of 0% on transferred balances for the first year right?

Hunt for a company that will let you transfer the balances with a low low low or zero apr..so after the first year, they should be paid down pretty low, and you could always transfer that balance to a new one, once the introductory rate is gone...

I think a consolidation (via consolidation company) would probably hinder your credit...

If I were in your shoes, thats what I would be doing...

Consolidation doesn't hurt the credit ratings. It offers a lower repayment plan in a situation when you are unable to make payments on your own. Just paying the minimum amount won't help because the balance is adding up with high interest rates and late fees. Consolidation will be the right option for those who can't bear the high interest rates and want to get their fees waived off.

The crux of the matter is if you can pay on your own, don't look for any other help. But if you are expecting to miss the payments in the future and your credit is going to be tarnished, take control by putting your debts under an easy repayment plan. This program will show up in your credit report for as long as you are in the plan. Once it's over, no one will get to know about your using the services. During this time, someone viewing your credit will understand that you tried to pay rather than leaving the accounts delinquent.

I looked into consolidation and its actually more then I can afford. The most the companies will do is a 5 year period and with there fees included I wouldnt be able to afford it. I just looked at the one CC today and it went from 16.24% to 24.24%. This is for no reason, I paid on time and 20 more then the minimum. My balance is 11K and a credit line of 18K. I have been with them for 6 years! The could care less about you, thats why Im doing the settlement, its just a matter of who to use!

Also I have tried do the transfer balance thing, but because like I said before that my debt to income ratio is so off, Im getting new cards with 2500 balance, and that does me no good!

Ok...

get your ducks in order and call your creditors. Calling them yourself doesn't hurt anything at all. Call them and find out why they raised the apr for no reason...if you have good payment history, etc, you can get them to lower the apr, rather than raise it.

I have heard that sometime when your interest rate is raised it may actually have nothing to do with the card the interest was raised on, but has to do with a late payment on another card, or high credit lines elsewhere, etc. Makes sense right? (that is sarcasm in my voice since ya can't hear me) It doesn't seem right but it is what happens.

They will review your credit rating every now and then and raise it at that point. I personally think this is a bunch of crap, it should stay the same or go lower as you have established good credit standing with that particular company.

I would call them and act as if I had an offer from another company with a better rate, tell them you have been an outstanding customer and don't really want to leave, ask them if they would consider lowering your interest rate. Alot of folks have success by acting as if their competitors can give you a better rate. Give it a shot, what do you have to lose. I mean, come on you are in good standing and are a good customer, do they really want to lose you, probably not. You are gonna have to be real convincing to get this done, so look up their competition before you call. Keep us updated.

Pauli's Girl is right, they don't really need to give you a reason to raise your rate. It is happening alot. I also agree with fedupinpa, try negotiating a better rate.