Plz Help 8000 worth of credit card debt?

Question

With 5 different cards....would it be best to consolidate or negotiate with the lenders....I have been avoiding their calls because I dont know what to do....

Answer 1

Check with a non-profit credit counselor.  While you can try to negotiate with the credit card companies themselves, they are more likely to be lenient if they see you are making an effort to fix the underlying problem (over-extended credit).

Be prepared to live on a budget and cut up your credit cards.

Answer 2

Whatever you do, do NOT consolidate them all on one credit card. It looks bad on your credit and you'll start getting turned down for credit applications. It's better to have multiple low balances than one or two very high balances. If you must get help, call a debt reduction service. There are a lot out there--and look for one that is non-profit. If you can't afford your bills now the first step you make is to -- stop spending!!! Freeze your credit cards in a cup of ice in your freezer if you must. That way you are forced to take time before you can spend a thing. By the time you thaw it out you'll have re-thought your purchase. Chances are you'll have realized you really didn't need it at all.

The next thing you can do is to contact the lenders yourself and let them know you cannot afford to pay them. You need them to lower their interest rates and work with you. They will more likely than not work with you because if the alternative is to get money from you instead of no money because you are forced to file bankruptcy, they'll work with you. They want their money! So stop being scared and take the bull by the horns. All they can do is keep calling you anyways. And what's a phone call? Nothing. So, you have options. Look into them. You'll be okay.

Answer 3

I took a course called New Focus.  It costs $25 and they can help you with management.

Counseling is not the best answer, consolidation is the key, but you need to know how to do it right, and manage your credit as well as budget and spending.  That is what new focus teaches.

Answer 4

Call American Credit Alliance at [phone]. They are based in Pennsylvania but helped my me and my family eliminate all of our debt (over $20k) in less than 4 years.  I worked with Wanda and they have an excellent record of helping consumers straddled with debt. First by starting collecting statements of the 5 creditors who are bugging you. Call ACA and fax them these statements. Make sure that teh accounts are closed and ask them to contact the debtors and negotiate a payment plan. The calls will stop in about 2 days. ACA will manage your debt and you make all payments to pay off your debt through ACA until the debt is paid off.

Answer 5

Try to consolidate and pay it all off, if you negotiate with them it does show up on your credit and it never really looks that good.

Answer 6

Well your first question should be to ask yourself if you want to be debt free or not. If you're still planning on keeping your same spending habits consolidating your debt will do no good to get you out of crisis mode. If you're willing to make some big spending changes then I would definitely consolidate your debt. I would first look on-line for another credit card that offers a 0% balance transfer fee with 0% APR for at least 12 months. Sign up and transfer all your debt to this card. Now you have 12 months with interest free to pay down the debt. This would be a monthly payment of $666. Can't afford that? Do what you can afford and then after the 12 months are up look for another card to transfer the remaining debt to and continue paying off this debt you've buried yourself in. Remember that all of the things you charge on a credit card you do not own until you actually pay for them. Until then, you're only loaning your groceries, gas, & clothes from your credit card company, the worst possible place you could ever plan to loan money from. Paying down your debt requires determination, dedication and commitment. If you're missing one of these three you might be fighting a loosing battle. I know you can do it!

Answer 7

Cut them up now. Start saving money and only buy things when you have cash. When will people ever learn. And don't worry, if worse comes to it, it'll be off your credit in 7 years.