Help Me Out Of My Debt?
Q: I have unfortunately gotten into a credit situation where I have good credit but have two credit cards which are currently killing me and it won't be long before I have quite bad credit. Namely, a Visa card with ridiculous interest rates (because I apparently was late on two payments the percentage rate went from 11.9% to 25%)- Trying to dispute it did nothing for me. I am, of course concerned about my credit as i've spent years making it good. I already have a large outstanding (maxed out) card from my credit union so I can't get another loan from them to pay off the high percentage card until that is paid off- of which I have no $$$- so its a big catch-22. I know there are a LOT of "non-profit" credit consolidation and help services out there but I'm thinking a lot of them are a scam and will cost me a ton of upfront money and perhaps do little/nothing for me. Are there any actual reputable ones anyone can recommend? Government sponsored perhaps? If they all cost money what should they cost? Whats the rate for a legitimate non-profit these days to consolidate or help me out of my debt?
A: You don't say how much debt you have, esp how much debt vs income. If you just have 2 credit cards, and you can make more than the monthly payment, you are probably better off working with the credit card companies yourself. Contact them, try to work out a payment arrangement at a lower interest rate, Most of them are amenable to offering a lower interest rate if you can offer a fixed payment. Be civil. However if there are several credit cards and a large amount of money and you are having a hard time making the minimum payments, a consumer credit service may be of assistance. They will meet with you, go over your bills and income, set up a budget and work with your creditors to get a lower interest rate (generally 9.9%), If you agree to work with them they will set up an autodraft from your checking account each mponth