I’ve been using a company called Greenpath for almost a year now. Their website is www.greenpath.com. They are great. It costs me $50 a month for their service but they were able to make agreements with my creditors, lower my interest rates and payments. I make 1 payment to them a month and they distribute it to my creditors. Since October of last year, I have paid off almost $5000 of my cc debt. You should check them out.
This sounds like a typical scenario of debt out of control. But, the best part is you can get it under control. So, Robert, have you looked at every little line item expense and found everything that you can possibly cut out that you don’t need? Any extra ten dollars saved in one place can be applied to a credit card with the largest balance. That’s what I have done in the past.
Slowly you can whittle down the credit cards one by one. Another thing that comes to mind, have you done a balance transfers to buy you time? I can’t think of anything else at the moment. Do you pack a lunch or eat out all the time? You won’t believe how much you can save by making your own meals to take with you or eat at home. You were able to run up these credit cards without any thought about the purchases I presume but now you have to think hard about how to pay them off. It’s not easy, it just takes time and a lot of willpower. All involved have to be on the same page too in order for this to work. Slaying debt has to be the number one priority now.
There is an alternative for you if you don’t care about your credit rating for the time being. It is called debt settlement and this is how it works.
If you decide to stop paying your Credit Cards, they will sell your debt to a collection agency normally within 60-90 days from the first missed payment.
They sell your debt to a collection agency for 2 reasons:
- They get .20 cents on the dollar from the collection agency.
- They get an additional .50 cents on the dollar from the government in the form of a tax break.
Once your debt has been sold to a collection agency for .20 cents on the dollar, debt settlement companies go to work on your behalf and send them a “Cease and Desist letter”. By law, the collection agencies are no longer be allowed to contact you, and the phone calls stop.
The debt settlement company informs the collection agency (on your behalf) that you intend to pay them .40 cents on the dollar, giving them a 100% profit, in exchange, they will to report to the credit bureaus that your debt was paid or settled. End result, you get rid of the credit card debt in a much shorter amount of time.
You take a hit on your credit rating for a bit, but you will do that anyway.
I did this exact thing I am doing myself. My only regret – I didn’t know about it sooner.