We have about 60K in CC debt plus about 9K in othe

We have about 60K in CC debt plus about 9K in other bill medical etc. All bills are current but ave CC interest rate is over 20% I earns $1200 bi weekly my wife earns $1000 bi weekly. 1 of my chks ea month goes to pay the mortage.

We spoke w/ a debt management firm yesterday and they could reduce our monthly cc only pmt from 1670 to 1270/mo and have us pd off in 5yr and change. The problem is that in the short term we could only really afford about a $1000/mo pmt to AVOID accumlating more debt on monthly living expenses, especially with gas going up. we do expect about 5k in tax returns by Aug and aslo to sell a company we own w/in 3 mo that would gererate either about 10k in lump sum or a monthly pmt of about 500 for 3yrs
Is there anyone who offers anything other that a 5 yr plan that is flexible enough to amend that once this cash becomes available or would allow us to pay down early w/out penalty once this money comes in?

3 Answers

you & your wife make $2200 every 2 weeks, which equals $4400 per month. is that gross pay or bring home pay?
your mortgage is $1200, which leaves $3200, then minus $1670 for cc payments, leaves $1530 per month for utilities, insurances, transportation expenses (gas, oil,etc) groceries & other necessities. do you have car payments or other loans you are paying each month?
have you tried calling your credit card banks to ask about rate reduction, which would get those payments lowered?

if you are current on all of your bills, you should be able to get a rate reduction. they also have \"hardship\" programs, which can reduce your interest and payment amount. some cc banks have better hardship plans than others. some will offer you 0% for a certain # of months and also lower payments, while others will offer you a much lower rate and lower payments good until the balance is paid off.
it does sometimes help to actually miss one payment before attempting the hardship programs but some will work with you even if you have remained current.

Iif you do attempt a hardship program with your cc banks, do not provide all the info about the income tax refund or selling a business, as they record everything you tell them, and it can prevent you getting any type assistance. the key word when you call them is \"hardship\" and they will ask what has caused your hardship.


Great advice generalee. The only thing I would add is to really try to do this yourself. There are some companies out there that will claim they can do all this work for you but they charge high fees that could go towards you getting out of debt.

Sometimes just asking them to lower your interest rate works well too. This may give you alittle bit of a breather and if you are current they may be willing to work with you.

Also, if it is possible maybe you could do some odd jobs, get a part time job or sell some things around the house to give you some extra money. You would be amazed at how much this helps out. And putting your household on a very lean budget doesn't hurt either. I was in a similar position a few years ago and now I can see the light at the end of the tunnel. You can do this. It is possible.

Good luck.


we talked to a ccc & the payments they wanted were more than we were already paying, as in our state, they only allow 4 years to pay off debt instead of 5, so that was not an option for us..then i checked into settlement companies, signed on with one then after reading over more paperwork, called back within 24 hours and cancelled the enrollment. that is when i started calling creditors to get on hardship plans, which worked ok for a while, as some banks only give you a plan for 12 months then you are back to square one with them, trying to extend the plan you were on & they will, but want a larger payment that you cant afford. i highly recommend working it out with your creditors yourself instead of paying someone else any amount of money to do it for you. dmp in most cases dont work out for people very long, as i have read...


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