Cut off my CC or debt considation
Date: Fri, 09/18/2009 - 06:46
I have a cc bill almost at 10k with 26%apr. Ive always been on time with payments until I lost my job and can only pay the interest and the minimum. What should I do? I called and they suggested i voluntarily cut the card off and they will lower the interest to 12% with no penalization. Dont know if I should do that or do debt consolidation. Please help.
If you are interested in saving your credit score and paying off
If you are interested in saving your credit score and paying off your debt AND you can make the payments, then you should consider the deal. You need to be aware that they want you to stay with them, so they are just extending you. If you can only pay the minimum after the deal, you will still be in debt for a long time paying it off. Make sure you understand what your new payment will be and see if you can pay more than that to get the debt knocked down.
If you don't care about your credit score then I would try Debt Settlement. You lost your job and if you stop paying them they will be more willing to deal. Your credit will take a hit though.
