I need advise on what to do.

I do have some income coming in - about $1500 a month from a consulting job - which is not enough to live on in California (where we are) - so we are moving out of state.

by doing a settlement it will affect your credit negatively. have you spoken to any of these creditors? if you explain your situation maybe they will work with you to lower interest rates or monthly payments while you are in school. what about a consolidation loan? do you currently have student loans? could you take some kind of student loan to pay off the debts and then you could deal with it all after you graduate? maybe you should speak to a debt counselor to see what your options really are? good luck to you and keep telling yourself " things will get better "

You do not want to take private loans out...believe me, they are a nightmare. Payment on $100k in private loans would be about $1000 per month at least.

Plus right now with all of your credit maxed, it unlikely you would even qualify.

Thank you for your input.

I have spoken to Chase and they refereed me to Take Charge America, even though they have an in house program. The reason was that I have about 10 credit cards. The agent at Chase did tell me though that I can apply under their program. When I called Take Charge America they were super nice to help me with info. But I didn't do anything with them. At this point I am certain I don't want to reduce principle as that would effect my credit rating drastically. I do want to reduce the interest rates though.

About student loans. Even though borrowing $150k over two years at an interest rate of 6% will result in high monthly payments the odds of getting a job with $100K right out of the program is quite high. If you have any input on this please please share.

Other than paying these in full or paying as agreed, I don't see any other option that would protect your credit score. Further, your credit score is probably already taken a hit because you're maxed out.

If you default right now, is there any way you can come up with $15-20k in 6 months? You could stop paying now and settle your debts for 30 to 40%. Of course, this will trash your credit but in 2 years you might have time to repair your credit and the defaults will be 1.5 years old, which would not hurt so bad.

You are going to have to make the decision on what to do, or it will be made for your when you default.

Still, with you maxed credit right now, you are not likely to qualify for private loans, let alone 6% ones. Pretty well the only people getting loans of that amount without a comaker are physicians and a few others in the health field.

dear Sep Sep.....I need to try to reason with you....when I read this I was scared for you. The very last thing that you need to do is spend $150 K on an MBA. May I ask, where did you get the info that you would get a job "right out of the gate?" I am a nurse and a college professor and I can tell you that even in nursing and college teaching ....it is very very hard to get a job right now. How much research have you done on this information. I am willing to stand corrected, but I have not heard of a shortage of MBA's or employers lining up to hire MBAs. Please look carefully at your situation....Your credit is probably already dinged and a debt management and especially a settlement will cost you any credit that you current have. Really think about what you are saying.....get your debt in order. I got my Master's in Nursing at a public college for less than $30,000.....I live in CA.....have your tried a public college? I know that they are impacted, but take your time. You need to protect your little dear family!!! THINK!!! sorry if I sould condescending ....I really am trying to help you see clearly!!!

Thank you SOAPLADY. I would be able to get a cosigner on the loans.

What do you think is the best action as to the credit cards. Contact each issuer directly one by one? settle for principle reduction after not paying for 3-6 months? or go with "Take Charge America"? They charge a $40 fee for their service. I understand the reason behind the fee but am not sure if i can't do what they will do for me by contacting issuers by myself.

Thank you all for the help and believe me I am not jumping into this without thinking.

I am in the middle of transitioning carriers. I had a very good job in a company with compensation level of about $90K. My education is in accounting and am trying to transition into accounting. I figured that getting an MBA from a top school will help me in the transition. I would love to hear from anyone with an MBA background on what they think about this.

I am trying to tackle my problems one by one. At this point I need to get finances in order with the minimum impact to my credit rating.

You have to do what you believe, but you DO NOT need a top school to get a good job as an MBA......
anyone with an MBA here or know something about MBA as a career option....and info on schools??? sep, how much do you expect to make as an MBA? Have you looked at that? Paying back $150,000 on an MBA salary???? sorry....you are asking for advice and I see many red flags here!!!

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Stop paying them all and believe me they will then put you in the hardship program and reduce the interest quickly. Sadly, you are trying to do the right thing now but unfortunately you can't get them to lower the interest until you are about 60 days late.
Your credit will take a hit no matter what but if you get back on track and pay the lower interest then it will rebound. Lots faster than where you are headed.
No comment from me on the MBA. I have a masters degree in a field that I don't even work in...:)

Like Kaylee said. Your credit is going to take a hit no matter what. This was hard for my husband and I to swallow but it is the truth. You either go to a hardship program where your credit will take a hit and you HAVE to come up with the monthly payments or one monthly payment if you go with Take Charge. Or you stop paying and get a settlement on the cards and your credit will take a hit. We chose settlement and now have 4 out of 5 cards paid off. We will start building credit from here.

Thank you everyone for the input. I have decided to put the MBA on hold for now. I am still studying for the GMAT and will take it soon as the score is good for 5 years.
Follow up question: I am looking for a job and think I should be able to land something soon within $40 - $60k. Meanwhile we have moved to another state (less expensive with no income tax!). Within the next 3 - 5 years I should be able to earn substantially more. My credit score is about 670-690. I can hang in there with the minimum payments till I get a job and than start paying credit cards much faster or take the opportunity of being out of work and either settle for less or try to get better rates which will effect my credit. Question: How much will my credit score get effected by settling or closing accounts (getting lower rates)? Is is worth for me to pay the high interest rates and try to hack through the debt or take the opportunity and try to get better rates and effect my credit score.

Thanks