“Dear Steve,
I have credit card debt with Discover. I tried to negotiate with them. Debt is $5k due to interest rate and late payment. I would like to settle, but I cannot afford to pay a lump sum of $3600. This is a huge learning lesson. I was told I cannot file for bankruptcy. I asked the cc company to work with me and set me up with a “financial hardship,” they refused. What can I do, I would like to pay them off. This is the only cc concern I have.
What steps should I take next. I really don’t want to work with a counseling company that will charge outrageous fees – for example if I give the company $300, $150 will go to Discover and the counseling company will keep half.
Frances”
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The Answer
Dear Frances,
Who told you that you can’t go bankrupt, and why?
A legitimate credit counseling company will not take half your payment as a fee. A debt settlement company might since they charge large fees up-front. If you want to talk to a legitimate credit counseling group, click here for credit counseling information.
And if someone just told you you can’t file bankruptcy, talk to a real bankruptcy attorney.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
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