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tko7800's avatar

What is the best way to relieve myself of bills I can no longer pay?

Asked by tko7800 (586 points ) March 6th, 2009

I have several credit cards I can no longer pay off. Any recommendations on my best course of action? I have thought of using a debt consolidation service but have heard lots of stories about how you often end up no better after using them. I do remember hearing something on NPR awhile back about a true government non-profit agency but of course I forgot the name. I’d even consider bankruptcy as this point, but my one concern is that I am a co-owner on a house. Would they be able to take that away? Any help greatly appreciated.

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6 Answers

mirifique's avatar

Try doing your own negotiating instead of paying someone else (a credit counseling service) to do it for you. My understanding is that given the current climate, many credit card companies are willing to reduce the total balance if you are able to pay some of the balance in cash immediately. Be firm in what you can and cannot do. I believe cc companies appreciate customer initiative to resolve payment issues. I’m pretty sure if they initiate the call, it originates from an entirely different department with an entirely different methodology.

Judi's avatar

Consumer Credit Counselors is a legit organization that has been around for many many years. They will negotiate interest away or at least down and will help you map out a plan to see light at the end of the tunnel.

Emdean1's avatar

I am in the same boat and actually settled out of the debt at reasonable prices. It doesn’t look to good on credit but at least you paid what you could. I have 2 left. I can’t wait to be done.
Also you can make and agreement to pay $20 a month as long as the collectors get something they are happy and your credit won’t hurt to much. NOT PAYING ANYTHING IS NOT AN OPTION!
Good luck!

tko7800's avatar

Judi, a lot of different companies came up in my search with very similar names. Would it be this organization: http://www.creditcounseling.org/ ?

Emdean1, dammit that’s the option I’m currently using! Which service did you use?

Judi's avatar

I couldn’t open your link, but Consumer Credit Counselors is usually a local non profit. They had one in Eugene, OR when I lived there and they have one here in Bakersfield, CA as well. I think they are in most medium/large sized communities.

AlfredaPrufrock's avatar

I’ve known people who have used this organization with great success: http://www.moneymanagement.org/

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