PostHeaderIcon Hardship programs – credit cards???


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I have accounts with US Bank, Citibank, American Express, Chase, and Wells Fargo. Does anyone have any experience dealing with these creditors regarding hardship programs?
US Bank seems to be the most helpful at this point, but I’m not sure what details I should give them and what I should just keep my mouth shut on. As of right now I am current with these accounts, but I have been asking them for lower APRs and increase in credit limits (hoping to consolidate the others to a lower fixed rate) but to no avail. I know that we can only make ontime payments for 1 more month and then everything is going to fall apart. We can no longer afford even the monthly pymts due to rising interest rates.

We have completely stopped charging to all of these accounts and are currently only using cash. We have dramatically reduced our spending habits. We know and can see how we got into this situation, but now we need help how to get out of it. We want to pay, but the interest rates are just too high and we’ve only been able to pay the minimum payments. Now 2 of the creditors have INCREASED our interest rate (to 29%) b/c they pulled a credit report and saw that I have other accounts close to the credit limit. That just doesn’t seem right that they can be so one-sided and increase my interest rate because I have high debt, but that high debt is being paid ontime. I could vent about this all day. But it’s time to stop complaining and find some good solutions … this is where I need your help.

No debit consolidation, credit counseling please. I want and need to do this on my own (with your help). I’m trying to save my credit score as much as possible.

Total unsecured debt is $90,000. Do most banks have hardship programs? What do they do? Reduce interest and pymts until paid off or only for a short period of time? How does it reflect on your credit report – positive, negative, or neutral? Do I need to be behind before I qualify for these programs? If so, how far behind b/c I don’t want the accounts to go to “Charge Offs”. I’ve heard it can be really hard to negotiate once an account goes to charge off status.

Thanks other Yahoo users! Looking forward to your comments.

5 Responses to “Hardship programs – credit cards???”

  • Sharon T says:

    I commend your attitude and I abhor bankruptcy but unless you have assets to offset that debt, you do seem insolvent.

    If you are determined to pay this off you will need to be firmer with the credit companies that have raised your rate. Get to a supervisor and lay the cards on the table: they must lower or suspend interest while you make repayment. Otherwise, you will concentrate on paying the creditors who are more reasonable and they will receive nothing.

    If your income is strong enough that you feel you can pay this off within five years, it is a reasonable plan.

    Again, you are doing a great job. Hang in there but look at the situation realistically.

  • bdancer222 says:

    Check into credit counseling. Check here for one near your: http://www.nfcc.org/. These are legit, non-profit companies. They can review your finances and advise you how to proceed. They have debt management programs available for a nominal fee. They negotiate with the credit card companies to lower your interest rate.

    With $90K you are not going to get the cooperation from your credit card companies on your own. That high debt level signals high risk. If you call trying to lower your rates on your own, they will likely go to universal default and cut back your limits.

    While in a debt management program, it will be annotated on your credit report. However, if you complete the program, that note will be removed. You will have a history of on time payment and your score will quickly rebound.

  • beaver says:

    file bankrupt before it to late

  • Cape Horn Spirit says:

    29% is mad. I wouldn’t advice you to ever get behind if you want to maintain any credit ratings which could be the only positive thing out of this situation.
    There are plenty of places that’ll lend you money to pay it all off on less interest, so this might be a less steep way out of it.
    You surely need a fair amount so I don’t know but whatever you can get at a lesser % is always better than nothing.
    Perhaps this can help http://credit—card.org/ good luck

  • anagnoide says:

    You might need credit counseling for the simple reason that this is a fairly straightforward problem to solve but you seem to run around in circles instead of hitting it on the head.
    And with all respect, getting under by this much at 29% interest doesn’t show clarity of mind necessary to get out of it on your own.

    The solution here would be to get a loan to pay this off.
    The loan should be MAX 10% interest.
    Once you have done this, get onto Ebay and sell off ALL your POSSESSIONS. Clear the house. If you have a nice car, sell it and buy a $1000 used old banger. That’s it, out of debt quicker than you think.

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