Credit card debt help needed.

[Fed_Up_Grammy]

Is there a non-profit group that can help out,with advice, credit card debtors who have got themselves in real mess.?

Can you deal directly with the banks or is that impossible?

A very close family member is in trouble,and with interest rates being added on I doubt if she will ever get out from under.She's thinking of bankruptcy but hopes to avoid it.

Thanks.

[Muttocracy]

1. try a local credit union?

mine was nice helping me refinance some debt after I lost my job and the credit card company told me I wasn't paying off my debt fast enough so they thought they should increase my minimum payment and interest rate. Math geniuses those folks.

Best of luck.

[Fed_Up_Grammy]

4. Thanks---I belong to a credit union myself and will check it out.

[Akoto]

2. Hi ...

Your options will vary somewhat, so I can't really give a specific answer. Is the debt still with the credit card company, or have they turned her over to a collection agency?

[Fed_Up_Grammy]

3. Still with the CC company--payments have been made every month,

but it seems to be a losing battle.

[Akoto]

6. Okay ...

You can try talking to the credit card company (it can't hurt), but most companies won't negotiate if you're current on your payments. They'll go so far as to pull your credit report and see if you're keeping up with your other financial obligations. If you are, they will try and say that you're lying about your inability to pay them. It usually takes a couple months of falling behind before they'll discuss settlements.

You basically have to convince them that they'd better take a settlement, because you can't possibly give them what they want, or prove that you really have nothing to give either way. If a debtor considers suing but realizes that you have nothing (other than your offers) worth suing for, they'll usually settle on the debt. Suing when the indebted has nothing is a waste of the company's time, and if it's proven in court that you really do have nothing, they could end up without you owing anything. This is what happened when my mom was in the hospital.

Consumer Credit Counseling Services is an option, and I believe someone mentioned it above. They will negotiate with the debtor on your family member's behalf to work out payments you can afford, but you have to agree to not take on any more debt until the issue is solved. However, you may still receive bad/late marks on your credit report, even if the debtor accepts the reduced payments.

If the company is willing to accept any feasible offer to settle the debt, then take it. Collection agencies are much more difficult to deal with in many ways, plus you'll have two shots to your credit instead of one. Avoid going to collections if you can.

If all else fails, and you've explored every other option, then bankruptcy may be the only viable solution. It'll take time to recover from, but you can do it.

[Muttocracy]

7. just be careful w/ credit counselors

they range from profit to nonprofit, bad to good. There is some national association for them that lists members who follow certain ethics but I can't remember the name of it.

[Fed_Up_Grammy]

10. Thanks---we'll be cautious and try to research them.

[Fed_Up_Grammy]

8. Fantastic info----thanks. I will pass it on to my relative tomorrow.

[Akoto]

11. You're welcome. As Joe mentioned ...

If you decide to investigate credit counseling, take care to be particularly thorough in your research. There are bad apples in that bunch. Consumer Credit Counseling Services, in particular, is a non-profit organization.

[BlueIris]

5. I hate to post it, but sometimes bankruptcy IS the best option. nt

[Fed_Up_Grammy]

9. When she mentioned bankruptcy to me,I almost died.

What a damn mess.

Thanks for your advice.

[Trailrider1951]

12. Oh boy, that can be a mess that can last for years

And those credit councelors can be your worst nightmare! They sometimes will charge you an arm and a leg just to screw up your credit!!!

first, your family member needs to learn as much as possible as quickly as possible. Two sites that helped me tremendously are:

www.creditinfocenter.com

and

www.creditboards.com

The people on these boards are very sympathetic, as they have been where your relative is now. They freely post about their mistakes, so you won't make them.

Second, it rarely helps to talk to the credit card companies before your situation is damn near hopeless. Why? Because they reason (?) that if they give you a break, they'll have to bargain with your brother, your mamma, your neighbor, etc. They only seem to bargain when you are 60 to 90 days late, and then your credit is screwed anyway.

Third, remember that to get out of a hole, you must first STOP digging. No more charges are to be made on ANY card. Inventory your cards and their status as to balance owed, minimum payment necessary, how much you have total to devote to cc payments, and to target the card to which you owed the LEAST. I paid the minimum +$10 (or whatever you can afford) on all but that one. On that one card, pay as much as you can, be it minimum +$20 or $30 or whatever. Repeat over the next few months until that one is paid off. PUT THAT CARD IN YOUR SOCK DRAWER AND FORGET FOR THE TIME BEING THAT YOU HAVE IT. DO NOT GIVE IN TO ANY TEMPTATION!! If you cannot handle this step, CUT THE DAMN THING UP!! You can always get another replacement on down the line if you decide you want one. When its balance is zero or there abouts, proceed to the next card on which you owe the least. Rinse and repeat. It may take a year or several, but you will be current on all cards, and will slowly dig your way out. Do not close any of these cards, as an open line of credit of some age will boost your credit rating, which has become more and more necessary these days. This strategy helped me to gain control of my finances. Do not discount that first payoff! It will give you real HOPE that you can do this!! Good luck! and remember, some of us have been there too, and we want you to succeed.

[Fed_Up_Grammy]

17. Thanks for all of your very helpful info----I will pass it all on

to my friend/relative(who happens to be my daughter).

I was truly blindsided by the financial information and didn't know where to start looking for information and wasn't quite open and above-board in my original post.

I have perfect credit(FICO 835 in 2005) and just don't see how she got herself in this mess other than just plain spending too much money and over-indulging.I guess the apple DOES sometimes fall far from the tree.

What a damn mess.

[Lisa0825]

13. Go to the forums at CreditInfoCenter

www.creditinfocenter.com

Please read there about the credit counseling services BEFORE anyone considers using one. They can leave you in worse shape.

The forums there are full of people who have cleaned up their credit themselves (for real, not the scams people advertise). My own credit has gone up 100 points using the advice there. The forum owner does sell a book, but 90% of the info is available free on the website and/or in the forums. It is a GREAT group.

[Fed_Up_Grammy]

14. Thanks for that info---just sent it to my friend.

[LaurenG]

15. Consumer Credit Counseling Services

I think they could help but since I don't know the circumstances, I'm not sure.

[triguy46]

16. Contact your local BBB and/or united way agency. Beware...

That there are companies out there that will do this but with hidden fees. You want one run as a charitable organization. Bankruptcy may not be much help thanks to the freepers, so try the counseling and their help first.

[Fed_Up_Grammy]

18. Will pass that info along--thanks!