We are current with everyone but owe $90K. We are

We are current with everyone but owe $90K. We are self-employed and looking at tiny income in coming months.

We expect fortunes to turn, also seeking outside employment.

Concerned about personal bad credit having an impact on our business, but seem to have no choice.

Question: Stop paying and see what we have for settlement in 3 months? or Try to do hardship payments and see how long we can keep it up?

Thanks.

5 Answers

I would try and call your creditors firs to see if they will work with you. I would not hold my breath however but at least you will have a record of trying to work it out with them. I also encourage you document every time you speak with them and write down what you spoke with them about. Make sure you get names also. Buy a small digital recorder and let them know you are recording the conversation. 


Well, creditors won't agree to settle the debts until you are delinquent on the debts. However, your credit score will be hurt when you stop making payments. So, first option is not a great idea. In my opinion, you can try to do hardship payments. When you are not able to keep up with hardship payments, you can try out the first option.


I fear we have waited too long.

Amex offered reasonable hardship paymement plan for two accts: 2.5% of balance on $25K balance and 1% of $9K balance for 12 mos; 0% interest for the first 6 mos and 9.99% for second six months. Wish we could swing it.

We may be able to do it for cards with smaller balances. Amex did say that the card would be suspended and our credit report would be maked \"on a payment plan\" for the 12 month duration. How negative is that... relatively?

Have worked so hard to keep good credit. Heartbreaking to see it flame out.

Thanks to all for advice.

 


You have not mentioned what type of debt you have. In this case, you may negotiate with your creditors and decide about the payment plan.


I fear we have waited too long.

Amex offered reasonable hardship paymement plan for two accts: 2.5% of balance on $25K balance and 1% of $9K balance for 12 mos; 0% interest for the first 6 mos and 9.99% for second six months. Wish we could swing it.

We may be able to do it for cards with smaller balances. Amex did say that the card would be suspended and our credit report would be maked \"on a payment plan\" for the 12 month duration. How negative is that... relatively?

Have worked so hard to keep good credit. Heartbreaking to see it flame out.

Thanks to all for advice.

 


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