how should i proceed?

[ginabobena]

Hello,

I just found this forum. It has been very helpful. I am posting to see what peoples thoughts are. I am at the point where we have juggled the debt and mortgage for some time. We have played the balance transfer game and it is coming to a head. We have not missed any payments and probably could continue on for a couple more months. We would like to try to settle on at least two cards that have an 8k and 11k balance we also have one with 5k and 3k and some other small ones with 500-1000. When we called to talk to them they said our account was in good in standing and they would not do anything. Do you think we should stop paying on just one at a time to try to start negotiations or would you try several at a time. I am concerned about tanking our credit and want to approach it in the best way. We are also contemplating foreclosure but have not missed a payment yet. I appreciate any suggestions that anyone would take time to offer.

Gina

[Denita]

I was in a very similar situation you are describing and contacted two of my credit lines to renegtiate my payments. The first one was Chase with a whopping interest rate of 29.24% (earned by going over the credit limit twice in the same month five years ago - even with a perfect pay history Chase said 'never in my lifetime' could the rate be reduced). I had to contact Chase several times to get to the hardship dept. However, I was able to close the account (and have it reported as closed by consumer), reduce the interest rate to 2% (two percent) and fix my payments for the next five years. I was current at the time (and now continue to be current with the new payment). A condition of this hardship approval was to not open any other credit accounts during the time of repayment. I was able to work a similar arrangement with MBNA (now B of A) with a four percent rate. It is not easy to get to someone that is willing to actually work with you. Be persistant. I had to speak to at least 5representatives in each instance to get to someone to modify the payment. I was told 'no' each time before getting to the right person. Most of the reps do not want to work with you as it takes some time and effort on their part. I had all of my hardship information handy so they could document the file. Good luck.

[amortgageman]

Stay current on the necessities of life (your home, utilities, etc.). If your home is not affordable (payments over 40% or so of your income), then consider selling and moving into something less expensive until you can get your financial situation in better shape.

Continue to try to negotiate on lower interest rates with your credit card companies, even if it means closing the cards. If they will not negotiate, then stop paying.