Falling Behind Soon
Date: Thu, 07/17/2008 - 11:47
Try not to miss the payments on the 9.9% rate otherwise it will
Try not to miss the payments on the 9.9% rate otherwise it will default to 30% or so. You will have a hard time finding a better rate than that 9.9% also. If anything I would try to move the 3570 over to the 9.9% rate if U.S. Bank will take it.
Nobody will consolidate that for a lesser amount than owed. If you default you can settle for a lesser amount but it will mess up your credit score.
Settlement -- maybe
I know a lot of people have been saying a lot of good things about debt settlement on this forum. But, every financial situation is different and may require a different debt relief option. Many debt settlement companies require at least $10,000 in debt to qualify so it looks like you may qualify. The only problem is that you need a job to cover their fees -- so you may have to wait till you start working again. Debt settlement will have a negative effect on your credit, but chances are it's pretty bad already. If you do qualify, you could settle your combined debts of $11,000 for up to 70% of the balance.
Anyway, it's a good debt relief option and worth looking into once you start working again.
Good luck.