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ecfl

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  1. I'm looking into some of the options recommended to me in another thread. I assure you spending modifications have already been incorporated into our plan and are something we continue to look at on a regular basis. Just gathering information about all possible options so we can make an informed decision about the best way to move forward.
  2. I am headed into territory where I don't think I'm going to be able to keep up with my cc payments much longer, and I'm considering talking to a credit counselor about a debt management plan BEFORE I start defaulting on payments. Is there room for a DMP to help if I'm still current on my accounts? I can't see where the creditors would have much motivation to lower my interest rates if I'm still making payments on time, but I'd like to head off a bad situation before it occurs if possible.
  3. Thanks for all the helpful information. It definitely sounds like there are better options out there than just stopping payments. We've already done just about everything we can do to cut expenses and increase income, so it looks like credit counseling or working with the individual creditors are probably our best options. I didn't realize there were actually legitimate credit counseling services out there - I just assumed they were all sharks because I've heard some very negative things. Will definitely be browsing the boards to find out which ones are legit and taking a look at what they may be able to do for us.
  4. There is some great info here. Thanks to those of you with constructive input. As for others who seem to think I just want milk my creditors for free stuff, perhaps a little more information would help. CC payments are WELL over $240 a month. If you're going to take info from another post and run with it, please read carefully. The post containing that number was about one specific account. All of our CC payments are over $800 a month and that doesn't include student loans, plus we are paying for childcare for three children in order to be able to work. A huge chunk of our income is eaten up by those things alone. We have an extremely reasonable mortgage - we couldn't possibly rent for less than we pay on our home - and our car payments are very low, too. For complicated reasons I won't go into, it would cost more for us to have one car than it does to maintain the two, as that would cause us to have to pay for additional hours of childcare. We have a detailed budget and we stick to it, and we've cut out the things that we can get by without. We don't make the nice income we have by just working 40-hour weeks, so a second job would be an extremely difficult option, too. We are not irresponsible or big spenders. We went through a time a couple of years ago where we were making less than we needed to pay our bills and living expenses, and we racked up a lot of debt during that time. We were in a tight spot and we definitely made some mistakes. Now we are in good shape with our income, but we are stretched so thin because of debt that we are having an extremely difficult time keeping up, and it's creating a snowball effect. The savings - which, by the way, came entirely from us selling any personal possessions we possibly could on ebay and CL, NOT from income overage - will be gone soon if we continue stretching to keep up with all of our debts, and then when it's gone we will be in real trouble. We are trying to find solutions now, before things hit the fan.
  5. I can understand how it sounds that way, andydallas, but that's not the case and I have thought hard about the repercussions to my credit. We were not making enough to make ends meet for a couple of years and now we are, but in those years we racked up debt and are having a really tough time getting out from under it now. The amount we have in savings will be gone soon, used to pay for childcare and other such expenses. At this point it seems like our options are to keep making the minimum payment and barely having enough to make ends meet for... Ever... Or doing something drastic. We are not just talking about the one card. It's a handful of them. We work hard and have impeccable credit but we are at the end of our resources for dealing with this situation.
  6. Hello - my husband and I are in decent shape financially but we are stretched to the max paying credit cards that we feel we'll never be able to finish paying off. We're stuck in a debt cycle and I don't know if we'll ever be able to break out of it. We have very reasonable mortgage and auto payments. The only things really weighing us down are student loans, which we know are never going away until we pay them off, and two credit cards with $10k balances each plus a few others for a couple thousand each. The really high cards are in my name, not my husband's. We don't feel like bankruptcy is a necessity since a few cc debts are the only things we're really having trouble managing, so we are considering just no longer making the credit card payments. We may have enough funds to settle one of the larger cards, depending on how much the creditor will take, but we probably can't settle all of them unless they will settle for something ridiculous like 10% of the debt owed. Based on this info, does it seem like ceasing to make the payments is a good option? Are there other options we haven't thought about? What would happen if one of the creditors sued us? We make $130k between the two of us, so on paper it looks like we should have no problem making the payments, but a huge chunk of that is going to student loans and childcare for three children under 5. TIA for any thoughts you may have.
  7. I have a Chase credit card with a $10k balance. I also have Chase checking and savings accounts that I use to deposit my paychecks and do all my banking. I've reached a point where I feel like I can no longer keep up with the Chase cc payments and I'm considering no longer making them and attempting to settle after a few months. My question is, if I stop making the payments, can Chase automatically take funds out of my checking or savings account? Additional info in case it's relevant - cc payments are $240/month. Paychecks are auto deposited,$1900 bi-weekly. Chase savings account has about $3k in it, which can easily be moved to another account. Closing the checking account would be a bit more of a pain but I can do it if necessary.

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