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Debt Settlement or Hardship Program

Date: Mon, 04/20/2009 - 16:12

Submitted by anonymous
on Mon, 04/20/2009 - 16:12

Posts: 202330 Credits: [Donate]

Total Replies: 4


My hubby and I have about $20,000 in unsecured debt. We have been making the minimum payments on our CC's but after this month it is going to be almost impossible to continue doing so. We also defaulted on one personal loan.

We consulted with CCCS last month and the DMP they offered would not help our situation. The reason it would not work is because the interest rates they could offer us were not any lower than what we currently have. So now I am thinking debt settlement. However, I was wondering if maybe I should try a hardship program first.

What types of interest rates and hardship programs do CC's offer? I am not sure if I should spend my time and/or money trying to do a hardship program or just stop paying and focus on settling.

My main concern is that once I stop paying the CC's the fees and interest will hike up my balances so high that I may not end up saving anything in settlement. I just want to take of my debt as cheaply and quickly as possible so I can move on with my life.

Thanks,
Angela


If you want to settle the debt, I think that you should stop making further payment towards the debt and register with a good debt settlement company in order to pay it off. The settlement companies negotiate with your creditors and bring down the debt to 40 to 50% of the outstanding amount.


lrhall41

Submitted by on Tue, 04/21/2009 - 06:44

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I am not sure if I want to sign up with a settlement company right away. I wanted to try it on my own first. But if the hardship programs that the CC's can offer have low enough payments I was wondering if I should try that first.

Does anyone know what kinds of hardship programs B of A, Discover and Chase will offer you?

Thanks,
Angela


lrhall41

Submitted by on Tue, 04/21/2009 - 07:22

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im unaware as to the types of hardship programs they have, but from what i see here on this forum they are all different and may be different for different circumstances. If you can swing the hardship program this is your best option for your credit and score. but if you cant get them paid off in this amount of time, then you may need to consider consolidation or settlement as your second choice and in that order. Call the creditors before you become late and see what they have to offer you. i have heard of no payments for 3-6 months, or no interest for a year, or a combination of both, the time frame varies. the only thing to tell you is to call and see what they have to offer.


lrhall41

Submitted by love_my_things on Wed, 04/22/2009 - 05:26

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