I assume that you don’t have other equity/assets that can be used to pay down/off the credit card debt. That being the case, you could try to negotiate with your creditors both a zero interest and reduced principle deal. You may not be successful, but my view is you don’t get what you don’t ask for. Your primary negotiating point is that the lenders’ alternative is bankruptcy, where they would get little or nothing.
If you are unsuccessful negotiating a decrease, though, I would consider BK, unless you stand to lose something more than just credit reputation for 7 years.
I am unofficially bankrupt with income around 50K (for 7 of us)and credit card debt alone totalling 67K. I am too proud for bankruptcy and feel it would be more honorable to try to make good…somehow.
Compared to the 7 year bankruptcy monkey where I’d pay zero per month, at 67k I’d have to pay $796 per month at zero interest to be free in the same 7 years.
I am prepared to ask each creditor for the zero rate…what’s to lose? However, even the $796 is a horrible strain and really not plausible. If I could cut the 67k in half AND have zero interest, I think it is do-able.
Question (finally): How do I ask for these terms in such a way as to actually GET them…or something similar. Is there any way in this world or am I nuts for not opting for BK. I figure why mess with the credit counselling people. They won’t talk to me since I have never actually been behind on any payment and my credit is great. Sorry for the off-topic post but I know there are finance-savvy people lurking here who may give good advice. Thank you and God bless!
Art