Not Paying Debt – Is This How to End Debt Struggles?
I am not behind, have great credit and great rates but cannot afford my monthly payments when my husband gets laid off( possibly in a few months)
Is there ANYTHING for people like me to do? Can I negotiate with the creditors in this case?
—Mburns
Given the brief detail you provided, you basically have 3 options to either quickly, or somewhat rapidly, put and end to your credit card debt struggles. Two out of three do involve stopping your credit card payments.
- Credit Counseling – Consolidating credit card payments into one lower payment.
- Bankruptcy – Discharge your unsecured debts in a chapter 7.
- Debt Settlement – As a good alternative to chapter 13 bankruptcy.
You indicated you have great interest rates, which would likely eliminate credit counseling as an option. The only real measurable dollar benefit to debt consolidation through credit counseling is interest rate reduction and thereby lower monthly payments.
Bankruptcy or negotiating settlements can stop the struggle.
Having struggled with credit card payments for years, perhaps it is best to end the struggle by filing for chapter 7 bankruptcy if you can qualify. You should find a local bankruptcy attorney and set up a consultation to see how that option will fit your situation. If you find that you cannot qualify for a chapter 7, or learn details that suggest you should try to avoid it (force sale of assets), you should consider how a debt settlement approach to your debt may help.
You do have to be behind with payments in order to negotiate reduced balance pay offs with your creditors. The idea of falling behind is often foreign and scary. If you do so with a plan in place, and a full understanding of what will happen along the way, the fear is, for the most part, removed. I would start with reading more about settling directly with your credit card banks.
You can follow the first stage debt settlement guide that continues after that article by clicking the link at the end of each piece.
I would encourage you to schedule a consultation with one of the debt settlement experts in the network, and to also schedule a consultation with a bankruptcy attorney local to you. It is a good idea to fully understand the details of both options.
Anyone dealing with a similar situation that has questions or concerns is welcome to post in the comments below for feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.
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