... with our creditors. We can't pay the bills because the rates have gone up to 29% and I'm looking for a job relentlessly and doing freelance work as much as I can get. But we can't pay the bills at this rate and have really cut back! I heard that I could draft a balance sheet and try to talk to the creditors about a payment plan and try to get lower interest? Is that true? Any advice? Any format recommended for the balance sheet? Thank you!!!!!!!!!!!!
Try contacting their hardship programs and see if they'll work with you,in this day and age a lot of them are doing it.
IME they will not move an inch until you are 60/90 days late... They figure that why should they lower the rate or cut you a break as you are still paying on time... Another thing is soon they are going to have to go down in their interest rates so they do not want to negotiate lower now when they can have high rates legally for awhile. How much do you owe? What companies? Before you pay anything make sure you pay for a roof over your head, your utilities,food, and car if needed. THEN you can start to pay what ever to the credit card companies. Oh one more thing do not make a payment plan that you are not going to be able to stick to, should you negotiate a smaller monthly payment plan. Good luck! Woofer
Thanks. Just over $100,000 to BOA, Citibank, AMEX and misc others. Car will be paid off in Sept and is just $124 mo. Been out of work, but husband is working. Have two rental properties with long time tenants, but if they wanted us to sell those, the tenants would instantly move and it would bankrupt us. So it seems they should want to work w/ us, I hope?
I just read recently that some of the banks (I believe BoA was one) are starting to negotiate with customers, and even negotiate settlements on debts without going to collections. It certainly can't hurt to try.
Dumb Bob wonders if you shouldn't check what the default rates on those cards are. Isn't Citi now at something akin to 31%? If they are difficult on adjusting for you, how long can you sustain that rate? It could be better to try to negotiate before defaulting even though the other people here might be right about the lack of will on the card issuer's part without a default. Also, if you default, you should expect someone to sue. You have some assets and they apparently are less than what you owe, so the first one to a judgment probably gets the Christmas goose. You will likely want to check what assets you can protect from garnishment and attachment in your state. There may be things you need to do ahead of time to prepare. You should probably at least talk to a lawyer.
Does anyone know how negotiating a settlement would effect credit score, and if it does have a negative impact can a good will letter clear it up?
