Not sure what to do.

[Guest fredntx]

Hi everyone. I am currently $50K+ in debt to credit cards by Citibank, Chase, MBNA, and Capital one. I am really not sure what to do. Right now I can't afford all of the min. payments and I keep accumlating more debt on these cards. I was convinced that wI was going to file bankruptcy a few months ago, but I really don't want to do that becasue of all the horror stories I have heard if you do that.

Next I was thinking I would use one of those debt relief services. I actually talked to one, had the paperwork all drawn up and ready to go and I backed out at the last minute becuase something didn't really fell right about them. I didn't like the idea that I was going to pay them 3 months of what they said my monthly payment would be before I started "saving" money in my bank account to start paying those down. Then I found this site and it does nothing but preach about how you should avoid those sites at all cost. I would like to be able to try to call these creditos and attempt to settle on my own, but I don't have the money to make any lump sum payments right now. I am at the point of thinking that I should try one of these companies, and if it shouldn't work I can just file BK and be done with it. I was also thinking the talk of just stop paying on all of these and let them charge off would be attractive becuase it would ultimatley get a lower settlement. Yes I know my credit score will be messed up for a while, but it will still probably not nearly be as bad if I filed BK.

I really don't know what I should. All I know is it's only a matter of time before my remaining credit cards are maxed out and I'm going to be forced into making a decision of some kind. I don't want it to get to that point. Any and all advise and comments from people would be appreciated. Thanks!!

[qtptute]

Most credit counseling places are a SCAM. Don't even bother with them. Some people here will disagree with me, but from the law firm point of view, you'll get further into debt using them.

Have your CC's gone to a collection agency yet?

You can consider talking to a bankruptcy attorney, to find out all of your legal options on what you can and cannot do. I would start there. IN most places they do a free initial consultation.

You can find one at www.nacba.com NACBA is the National Association for Consumer Bankruptcy Attorneys.

Hope this helps and good luck.

[willingtocope]

Agreed. Avoid the "debt fixers"...they will not help.

And, yes, go talk to a couple of BK lawyers and at least see what your option are.

However, if you have a job and some money each month to work with, here's another solution. Sit down and draw up a budget. Food, clothing, a place to live, utilities, and transportation comes first. Some money for emergencies. Whatever is left, divide up as payments to your unsecured debts. (When I did this, I used balance to creditor divided by total of all creditors mutliplied by what's available to figure how much I could give to each). When you figured out what you can afford to pay each of them, call them up, ask for the hardship department...see what can be worked out.

If you've got it all down on paper, when you call your creditors, you'll know what you can afford. If they won't accept it, then you'll know BK is probably you're only choice. (NOTE that a BK 13, which is what you'd be forced into if you have a job, is pretty much what I just described. The difference is, with a BK, the courts will make them play along.)