Thread: cccs debt management

I have 33,000 in credit card debt. I am current on all cards, but struggleing hard. I have to do something. I will soon be missing payments if this keeps up. The credit cards raised my rates to about 25%. I have tried to contact the institutions and ask for a reduction in interest rate, but that say no. I do not want to file bk. I have contacted cccs about this they say they can put me on a program to get them all paid in 4 years. I do not have much money in savings about 1,500. I am not sure what to do. I want to do what ever will not hurt my credit as much, I know what ever I do it will get hurt. I have a good job, just stupid and got my self in credit trouble. I also own my house but no equity in it. What ideas do you recommend. (cccs, try to do a debt settlement charge off, or bk)

I have 33,000 in credit card debt. I am current on all cards, but struggleing hard. I have to do something. I will soon be missing payments if this keeps up. The credit cards raised my rates to about 25%. I have tried to contact the institutions and ask for a reduction in interest rate, but that say no. I do not want to file bk. I have contacted cccs about this they say they can put me on a program to get them all paid in 4 years. I do not have much money in savings about 1,500. I am not sure what to do. I want to do what ever will not hurt my credit as much, I know what ever I do it will get hurt. I have a good job, just stupid and got my self in credit trouble. I also own my house but no equity in it. What ideas do you recommend. (cccs, try to do a debt settlement charge off, or bk)

cccs will ding your credit big time - pretty much viewed like a bk or worse by some.

This is what I'd do:

1.) Make your case to each CC lender. Tell them you won't be able to make payments unless they work with you, it's that bad. Just be straight with them. Then if you can negotiate something, get it in writing. You could potentially use part of your cash savings in the negotiations here as intentional good will, maybe with the card that has the lowest balance.

2.) Focus on paying off the smallest balance first, then use the payment savings to pay off the next smallest and continue the process.

3.) If nobody will work with you... well, you could stop making payments on the smallest balance and follow up with a call that this is what they forced you to do, then try to negotiate again, meanwhile keeping all other accounts current and in good standing. Late payments aren't anywhere near as bad on your credit as collections/chargeoffs/etc. Limit it to one account and negotiate as much as you can.

Good luck. I'm interested to see what other ideas people have as well.