I have $8,300 in business credit cards. They don’t show up on my credit report. I also have $10,000 in personal credit cards. I was thinking of enrolling in a debt consolidation program that I was referred to by my wamu card.
i just had surgery and have to work with one arm on my own business. My wife brings home $1,700 a month and our mortgage and cards add up to 2,600 a month. I am not bringing a reliable income at all. Maybe only about 500 a month. My wife jsut finished a grueling 42 month debt settlement and now i have this debt
If I pay all the credit cards in my name it will be about 300 a month. If I pay the two business card it will be about 550 a month. Can I just put my cards into a debt consolidation and let the business cards default? Then maybe I can negotiate with the business card creditors later?
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You can do anything you want to do.
I suppose the business cards are in the business name only and your business is an LLC or corporation. If that is the case, and you have not personally guaranteed the cards then the credit cards are the responsibility of the business as a separate legal entity.
It sounds like you already know, from your wife’s “grueling” experience with debt settlement, what will happen when you default on the business credit cards. You already know you will wind up in collections and you will be chased.
Before you leap at the debt management company suggested by your creditor WaMu, I would suggest you shop around a bit and compare the services of several debt management companies. Find one that you think you would like to work with over the next five years or so.
Click here for debt management information.
I guess the only concern I have about your plan, besides the collection and possible lawsuit by the business cards, is the fact that your income or so small right now and your promised payment will take up so much of the income that it is foreseeable that a single unexpected expense will cause your repayment plan to fail.
Something to think about.
SteveI Was Thinking of Enrolling in a Debt Consolidation Program. - James by Steve Rhode