Debt Settlement?

Contact them first. Ask about their hardship programs, let them know what is going on. (It's called Debt Management or Debt Negotiation, here is the Do-It-Yourself page on DM). Just make sure you follow their program religiously, even a day late on a payment and they will cancel the program.

I know how difficult it can be when you feel like you are drowning in debt. The worst thing you can do, is do nothing. You can try to settle with the companies, but it is unlikely that they will offer you more than deferring payments under a "Hardship plan". This could be good, if you know your income is going to go up significantly when the hardship period is over. If, you think you will not be in a better financial situation in the near future, then if you sign up for a hardship plan you will be just delaying a better course of action and will most likely owe more than you do now.

Your other options are Bankruptcy, debt consolidation or debt settlement.

Bankruptcy is pretty drastic and will stay on your credit report for 10 years but, in some cases, when you know you can't pay anything back, it is a good option. Just be aware that the bankruptcy laws have made it more difficult for people to file bankruptcy and you may still have to pay back something to your creditors.

Debt Consolidation will reduce your interest rates but, not the principal. Your payments will still be pretty high and your credit score will be effected.

Debt Settlement is a good choice, if you want to settle your debts and you can afford to make one smaller payment each month. You can expect that a good debt settlement company will reduce your debts up to 60%. Your credit will be effected because you will stop making payments on your cards and it will go into collection status. The debt settlement company should be sending notices to all your creditors stating that you have enrolled in a debt settlement program. From that point on the creditors are notified that the debt settlement company will be handling your account. Your credit score will start to go back up once your accounts have begun to be settled. Make sure if you decide to go with debt settlement, you ask if they have attorneys licensed in your home state that will oversee your account. You want to make sure that they are familiar with the laws in your state, that your case will be handled properly and that you will get the maximum benefit of the program.

I hope things get better for you and remember you are not alone. I hear from people everyday that are going through what you are going through. You're taking the first step towards improving your situation by looking for help.
Certified Financial Solutions

Keep us posted on what you do. I am in the same boat. am current with payments so far, but I am not sure how much longer I can do this. spoke w/ dmp program and they can't really reduce what I am paying a month by much. they suggested that I call each cc company and tell them my situation to see if there is a hardship program I can participate in.