Need advice
Date: Tue, 10/04/2011 - 11:47
So I guess my question is what's next? Should I try going to a credit union or would it be a waste of time because I'll be denied instantly. Whats next after this?
If you're a member of a credit union, then you can try getting a
If you're a member of a credit union, then you can try getting a loan from them in order to consolidate your debts and pay it off. But if your credit situation is not too good, then it will be difficult for you to qualify for a debt consolidation loan. In such a situation, it will be better to contact a professional debt relief company and take their help in consolidating or settling the debt. In your case, this will be a better option than to take out a debt consolidation loan.
hardship program
If you could make a lower payment and want to save your credit, I suggest you try to get on a hardship program. Many credit card companies will put you on one so that you can make a lower payment. They'll close the account to new charges, though. My experience was that they reduced the payments by about 1/2. For us, that still wasn't enough, and now we're working on settlements with some of them.
Start by calling the card company and explaining what's going on. If they are unresponsive, stop paying. After a couple months, they'll likely work with you to lower the payment. Settlement is a great option if you can do it. Depending on which company, you might be able to settle for $2000. But if you have to come up with $4000 (50%) it might be hard for you to find that much money. You can read about the different companies on this site to get a feel for how likely it is they'll be willing to take 20 or 25%.
Good luck!
I think you can try consolidating the credit cards into one cred
I think you can try consolidating the credit cards into one credit card. This can be done through balance transfer. That is, you will be required to transfer the balance from all the credit cards with high interest rate to a credit card with extremely low interest rate. This will help you in consolidating most of the debts that you have. You can then manage to make the normal payments on the other debts.
Another thing that you need to remember while doing the balance transfer is that you should avoid closing down all of the other accounts at the same time. This will hurt your credit; you can close the accounts one or two at a time.
