“Dear Steve,
I got laid off a couple of months ago and we cannot get any of the credit card people to reduce monthly payments for us. we are starting to drown. they all tell me that the only way they can help is if i stop paying, then they can help me.
How can i get them to drop monthly payments without ruining my credit? or is debt consolidation a good idea and who do i go through?
Michael”
The Answer:
Dear Michael,
As silly as it sounds, what they told you is true. As long as you are current on your bills you don’t fit into a process at the creditor for giving you any sort of concessions. Once you do fall behind expect your card to be closed and collection activity to begin.
The bigger concern for me is I’m afraid you are spending money you are not making to stay current on the cards. If you are drowning and there is no reasonable expectation you will be able to keep paying the cards based on your current income then we need to go to Plan B.
Before it is too late and you are completely tapped out with no options, you owe it to yourself to click here to find a local bankruptcy attorney you like. Make an appointment and just go in and talk to them about your situation.
I know you don’t want to go bankrupt but no matter how much I want 2+2 to equal 5, it’s just not going to. In lieu of income coming in to make the minimum payments, any other solution is going to be pouring money down the drain, you’ll wind up behind, sued, and desperate. Take charge and speak to a bankruptcy attorney before the creditors take charge of you.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.