I don't have any experience with this, but I may soon. It would seem logical to me that with credit card companies, even bank loans they would prefer to cut their interest, lower minimun payments, etc., than to lose it all by the debtor filing bankruptcy. It sure doesn't hurt to ask. Maybe if you could contact a local better business bureau, you could find a reputable credit counselor. They sure claim to work miracles. Good luck.
OK, all of us threaten to be in this position. We may be arriving at this station. Does anyone have any experience with either bankruptcy or credit counseling they'd like to share.
Really, we need to just get through a rough spot of a year or a year and a half, but there's no way we're getting through it without hitting a few MAJOR potholes, if you get my drift. Any suggestions? Should I scour my relations to see if anyone's willing to give us a pretty major loan? Neither my dad nor my MIL has this kind of money, I'd have to tap a brother or sister.
I just wonder how easy it is to get the credit card companies to accept less than they want for a period of time. We have NEVER been in this situation before, and wouldn't be if not for the dreaded additional therapies, the lack of coverage from the insurance companies and our unwillingness to say 'no' when it comes to our two daughters' futures...
Here is a site that gives tips on finding a credit counselor. It also indicates that bankruptcy should be a last resort. The site is eHow - How To Do Just About Anything. You can find information on how to take care of different financial matters, as well as everything from arts & entertainment to weddings.
http://www.ehow.com/how_16020_find-credit-counseling.html
We did credit counsel a while back--It was called Consumer Credit Counseling--it worked well for us and we paid off 18,000 worth of debt in three years. The only fee was for mail--about a month. Course, this was in 1990, so maybe fees have gone up. Still might be worth it. You ahve to be willing to give up all of your credit cards and close accts. A great move, imo. Relying on credit cards always gets people in trouble.
Also, Dave Ramsey has great resources for paying off debt. A message board, too, for support. Great financial advice there--Dave was a millionaire and had to file bankruptcy when he was younger--changed his ways and now teaches others to do the same. His books are available in the library. The message board is free. He is on the radio, too, though I don't know all locations and times.
I was told to avoid the refinancing route. The logic is never use secured debt (mortgage) to pay off unsecured (credit card) debt. What's most disheartening is we have been and are still fanatical about paying our bills on time. And yet, our credit card companies have been MERCILESS in raising our interest rates! I realize they are just 'playing the odds', but it just makes it so hard to dig out when these companies are piling it right back on...
I'm tempted to call our credit card company myself and see if I could negotiate something. That's all we're looking to do really, I'm just afraid that'll raise the red flag even higher...
I realize this is a verrrry touchy subject, I'm not sure why I am discussing it on a public board, but I'm sure it's on the back of many a mind on these boards...