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Deliberately defaulting on your credit card debts as a tactic to settle for less is a dangerous game to play with your creditors...be careful. Their response might be to serve you a summons and take you to court instead of settling. - There is no such thing as a credit card bailout regardless of what state you live in... - If personal budgeting, making more money or advise from people like Suze Orman can't help you and you are still struggling with large amounts of credit card debt that you are having trouble paying back, then there are only two realistic options: Entering a Debt Management Plan or filing for Chapter 7. Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS). They can negotiate reduced interest and payments. They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to "enrolled in debt management." This does not damage your credit, but it may make it difficult to obtain new credit while you are enrolled in their program....so don't use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would might be denied while you're enrolled in the CCCS debt management program... CCCS counselors will often tell people to not file for bankruptcy when they really should. If your debt is overwhelming relative to your income/assets and the reduced payments negotiated by CCCS simply will not work, then you should think about filing for Chapter 7 bankruptcy. Sometimes filing for Chapter 7 is the best option for overwhelming debt. Don't let anyone smear or guilt-trip you if you need to file for bankruptcy. Do what's best for you and your family. ================== Stay away from any "debt consolidation" company that promises to cut your debt in half through debt settlement....This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You can never predict how your creditors will respond to the deliberate defaulting of your accounts...they might settle at 50%...or they might serve you a summons, take you to court...and if they win, you could be looking at wage garnishment. Many people who sign up with “debt consolidation” firms incorrectly assume that they have the power to force your creditors to accept settlements...they don’t. Your creditors have the right to refuse settlements and take you to court.

by CatDad

3 months ago

Asker's Rating: 

debt is dumb = dave ramsey Fox Business Network Contact your creditors and work out an arrangemnt.

by Watch IT!- 3 months ago

I agree with cat dad with contacting your local red cross. the credit consoling is free and the only one I would ever advise. there are many companies out there that claiming to help you but they are looking for there bottom line. If you have multiple accounts I am willing to bet have will sue you for the full amount you owe. This is not a fun process, but of coarse you could file bankruptcy on them. My brother tried doing this with this two cards on with 5k, other with 4k. He got hauled into court for both of them in a matter of 5 months. They ended up tacking on a extra 2k for attorney fees and court costs. so now he has 11k in judgments and they are garnishing his wages.

by bryan l- 3 months ago