Financial help please? Which is better, handling debt on your own to settle or getting help?

Question

I am a single mom of three that went thru a divorce. I have about 8 old credit card accounts that I have not been able to pay on in almost a year. I have agencies calling me to settle before going to court. I am about spent out for the month and what should I do with the other accounts that I cant settle myself until the others are paid? I can only handle the high payments to settle on one card at a time but the other companies will not wait, they want payment now? How should I handle this??

Answer 1

Make sure you have enough money to pay for shelter, food, lights, and fuel. Save at least a $1000 for emergencies. Whatever money is left over is used to pay off debt.

Do not let them threaten you. Settle with them. Get everything in writing before you send them any money. For more advice on handling debt collectors, see the link below.

Answer 2

I strongly recommend that you contact a credit counseling service to help you develop a strategy in handling your debt.  They might see solutions to your problems that you don’t know about.  They might also help you consolidate your debt, negotiate with the creditors for better terms or payment options, and maybe connect you with other agencies that can help in other ways.

But first you must get yourself organized.  Gather the latest statement from all of your credit card companies.  Write down the name of each company, how much is owed, the interest rate, the minimum payment amount, and the payment date.  Then do a Google search on credit card counselors in your area.  Cross check their names through the Better Business Bureau to make sure they are listed and have no complaints against them.  Call the best companies and ask them about their service and how much they charge.  Choose the one that fits the best and make an appointment with them.

Good luck!