Teresa 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.
Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty. If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help.
“Dear Steve,
I am in 60k in credit card debt. All payments are current but am reaching the point where the payments could start slipping. I’m receiving notices from the credit card companies that terms are changing. With this kind of debt, I could be in real trouble soon. I need one payment and then cut up the credit cards.
Teresa”
The Answer:
Dear Teresa,
Most likely what will happen is that your interest rates will get jacked up to the max and you will no longer be able to afford your payments.
I’d suggest that you enroll in a debt management program right now to get your rates down to the lowest levels that the creditors will offer. If that is not sufficient for you to get by then a more drastic solution may be necessary. Check the debt management option and come back and let me know if that works for you.
Unfortunately the raising of interest rates by credit card companies, in turn raises minimum payments which just makes it impossible for you to make payments. If the creditors lowered your interest rate instead you would not have this problem.
Creditors are stupid, what can I say?
