Your retirement funds are safe(401K)no one can garnish them even though they are an “asset”. Best bet is to deal with the credit card companies directly and get those interest rates below 10%. Suspend the use of your cards for any non-vital costs. They want to get paid too so be persistent about their pay down programs.
Here is what I accomplished with MBNA:
- On a $32,000 debt 550.00/month at 6years at 3%. I owe them 19000 now.
- With Discover Card On a 13,000 debt I owe them 8000 now. $394.00/month 4 years at 10%
- With Citi Card On a $8000.00 debt $300/month at 10% 3 years. They also have a half/pay program. when I owed them $3000 I complained that the paydown rate wasn’t moving fast enough.
They offered the following:
Come up with $600.00 and we will match it. That day I got $3000 down to $1800. I went after this debt with a vengeance and have it down to $700.00 as we speak. With JC Penney it was 3000. I managed to pay this down at 300/month NO INTEREST in ten months.
In all cases I closed the cards and only work on buying what I have the money for. I intend to be debt free in 2 years. Meanwhile I have housing expenses of $3000.00. I work a tremendous amount of extra jobs to make ends meet but I am driven to succeed at this program.
If I ever have a credit card again, I would never allow courtesy checks nor have a limit greater than $5000.00 and this requirement would be in writing to that company. Be hardnosed with credit card companies. Don’t take no for an answer. it took me a year to get Discover Card reigned in to my terms.
I kept hanging up on them and I stopped paying them at one point till they dealt fairly with me. For example: When they threaten penalties and late fees tell them that needs to go away if they are going to get paid. Interest rate 18%? No way.
They will call back with a better deal just be patient. Don’t divulge a bank account number to a credit card company you suspect will seize your account keep safe money safe in a new bank. Pay from a pay account you intend to divulge to them that checks or electronic transfers will come from and only have in the account what you need to pay them.
You can be debt free in 2 years if you focus on not using credit anymore. I was almost 60000 in the hole 2 years ago and now its under half that. The tunnel finally has some light in it. When I destroy the Citicard account I’ll focus on the next smallest debt until it too is gone