Elle wrote to me through the GetOutOfDebt.org site and asked the following question. 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.
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“Dear Steve,
What do you do when the credit card company and the credit counselors say they can’t do anything to help? I have a solid income, good credit score and have racked up $37,000 worth of unsecured debt. I called Bank of America to ask for a lower interest rate, I’m paying 18.99%, 21.99% on two cards. Credit counselors flat out told me there was nothing they could do because I haven’t been late or missed any payments. My last resort is to file for bankruptcy but what will the courts do?
Is there any other option?
Elle”
The Answer:
Dear Elle,
First off, I would get a second opinion with a debt management company about being put into a debt management program because you are on the edge of falling behind. I’m surprised you’ve been turned away by credit counselors. It is a common situation and a no-brainer just to plop you on a DMP. Click here for debt management information.
Your other option before considering bankruptcy would be to actually skip a couple of payments. I know that sounds ridiculous and it will hurt your credit but it is a fact that creditors offer more lenient repayment options when people have proven they can’t pay the bills.
Before you go bankrupt, fall behind and see what’s offered.
