Consolidate my debt?! I need some advice!?

Question

I just recently got a divorce and my credit card payments for 12,500.00 are 400.00 a month and I can not afford them anymore. I want to consolidate them or do something... I called carecredit and they want to charge me 1800.00 and have me pay 267.77 for 33 months and in the meantime this hurts my credit and puts me in bad standings with the credit card companies because they put your money in an account till you have enough to at least pay half than they settle but in the meantime these credit card companies can file lawsuit against you and you have to deal with that as well... I just dont know if thats the route i wanna take... Isnt there something out there to help people who have fairly good credit and are on time with there payments?! I want to get ahead not fall behind!!! Why does this seem to be so hard in life?! .... do you think if I got a bank loan and paid off the debt I would end up on the good side of things?! .. or can i tell the card companies i am going through hardship

Answer 1

Can you transfer your high interest balances to one or two zero interest cards, there are many companies that offer zero interest for up to 18 months. That should help you get lower monthly payments.

Answer 2

Are you able to cut corners in your daily life? Pick up a second job? Try reading tips and advice on www.daveramsey.com

Answer 3

Well you've done your homework.  I would be leary of any debt consolidation promises.  It looks like you are thinking the same thing.  I would go down the debt settlement path before debt consolidation.  You have two objectives:

1-Negotiate negative credit information off your file.

2- Negotiate a settlement

Its not easy, but it will save you money and credit.  Personally, I would engage an attorney too to discuss options, but make bankruptcy your last choice.

Answer 4

Check with "InCharge" Debt Solutions, PO BOX 863252; Orlando, FL 32886-3252; www.incharge.org or call 1-888-734-6229; Their monthly fee is (was) $35.00.  

Good luck; they will work with you and they have many people I know.  They contact the Credit Card companies and work out a payment plan, you will need to show them your monthly financial statement such as Mortgage, or rent; car payment, utilities, gas etc.

Don't fall for the Care credit.  They keep your money and don't pay the credit cards monthly and will ruin you and make  your life miserable.  They kept 3 of my friend money and well over $5K each.

Answer 5

you could do debt cosolidation or debt settlement, debt settlement is better because in some cases they will settle up to 70% of your debt, check out www.creditservicesolutions.com they will give you a free analysis on your debt.

http://www.creditservicesolutions.com/

Answer 6

Call Consumer Credit Counseling Services at 1-800-388-2227 they are the largest and oldest credit counseling service in the nation and are non-profit.

They have offices in most all major cities and will lower both your interest rates and monthly payments.

I used them several years ago and was debt free in 36-months.