Need Advise on creditors

OverMyHead · #1 (**permalink**) 02-05-2008, 10:07 PM

I am in serious credit card debt and am at the point where I can't make the minimum payments, not even cover the interest charges. I read a book by Debtors Anonymous and have really changed my spending habits/budgeted etc. (Cu the cc up over a month ago and have not used since!) I am on track, except for the credit cards. In the book it stated to call them and ask for assistance in getting my rates etc. lowered. They are not working with me at all, it is very frustrating. Has anyone else done this with success?? I am getting desperate and thinking of going to a Debt Management program like NovaDebt, but I don't know if they are reputable....

lovcom · #2 (**permalink**) 02-06-2008, 12:40 AM

My ex wife was in your shoes. Since they changed the bankruptcy laws in the last few years, it is harder to BK credit balances away, and the creditors know that. Try to get them to work with you, but at the end of the day, if they don't want to play ball, then I would seek an attorney and see what your options are. Often the first consultation is free. I'm really sorry you're in that bind.

Bankruptcy aside, is there anything else you can do to save money? Rent out a room in your home? Move in with family or a friend? Sell the car and get a used one? Knock off the Starbucks, and fast food snacking? I would search for ways to cut my expenses as best I can.

Let us know how you progress and I for one wish you all the luck to get out of your morass.

bjl584 · #3 (**permalink**) 02-06-2008, 09:55 AM

Can you provide detail on your monthy income and expenses? It will be easier for us to give you advice if we have more info. Include your loan balances and the interest rates as well.

OverMyHead · #4 (**permalink**) 02-06-2008, 08:38 PM

Thank you. I have tried to cut as much as I can, I own my car, and I own my place (unfortunately a 1BR that I am paying mortgage on.) I was unemployed for a few months and so my credit cards really consumed me. I have a total cc debt of about $31,000 with minimum payments of about $1000/month and the interest charges are about $600/mo. Most of the int rates have gone up to the high 20's, since I was unfortunately unable to make payments for a few months. State Farm Bank so far is the only one working with me, has put me in the hardship program. I take home about $3800/mo. Ugh!

anonymous_saver · #5 (**permalink**) 02-07-2008, 09:57 AM

We need more specific numbers for you to try to help you fix your money issues. Please supply a list of your monthly expenses (and interest rate and balance for loans), include everything including necessity purchases like food and shampoo/conditioner.

Is your $3,800 your take home each month? That's quite good, I think we could definitely help you out.

Are you contributing up to your employers' match in a retirement account?