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places, first call the companies. If you haven't been charged off yet, most will work with you and have hardship programs. The accounts will likely be closed, but after 3-4 ontime payments they will "re-age" to show as current, will lower the interest rate so payments are lower and you will pay off over a 4-5 year period (in most cases, you can't use the cards as acct will be closed to further charges in exchange for drastic reduction in interest rate). Going with CCCS or similar, has the same effect as a BK, even worse, on your credit rating. The accounts will report as "closed, paying under debt management plan." While bankruptcy is an option I suppose, if you're a homeowner or have any assets, you'd have to file Chapt. 13 which will allow for some payback. I'd call the companies first and lay out your situation and see what they suggest. The credit industry is in a mess right now so they are willing to work with you if you're upfront and showing good faith. |
Before considering the CCCS or debt relief (sm) - Been there
