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Credit Card Debt - What to do?

June 18th, 2011 at 04:46 pm

I have about 3 credit cards which are all current at the moment. The 2 have small monthly payments and the 3rd has a monthly payment of over $250 a month.

Lately I've been feeling like I'm still stuck in the beginning. I try to pay more than what is due but each month when the bill comes, the monthly payments are still the same. I've been thinking about not paying this card anymore. I am fully aware of the consequences (phone calls, late fees, collections, etc). I've been thinking more and more about letting it go to collections. I feel that if I stop the payments, I can start saving and when that day comes, I can make settlement.

I've been talking to friends to get their story. One friend defaulted on 4 cards which she settled later. She said she never paid taxes and once she paid her credit went back up. I'm at a lost as to what really happens in the process. If I continue paying, then I will be digging us deeper in the hole.

Can anyone give me insight into your story?

What to do?

June 8th, 2010 at 07:44 pm

Ok I just called the credit card company of where I bought my furniture. The account currently has a balance of $2042.48. I had a hard time paying this card at the end of 09 so I had let the card go for about 2 months. I caught up on payments in Jan and since then, I had been on a temporary hardship plan with them where I pay each month $75.00. Before, it was a monthly payment of $140.00. It was initially a 3 month plan but I called in March for an extension til July. So today I called to double check when the plan ends and the rep confirmed that it will be in July. I asked her if we can extend that again since it was a reasonable amount that I can make. She said no, they can only approve for a 3-6 month plan in a year. I went on to explain that I cannot afford the $140.00. She suggested that I use a credit card to pay it off or to consolidate which I explained that I can do neither. After a minute of silence, she tells me that there is no other options for them. I wish they were like Chase who is allowing me to pay my balance at $75 for 5 years interest free!

So now I wonder what to do. I don't use this card anymore. I got it so we can get furniture for our first apartment. So I can't use it on anything else but more furniture lol. Part of me just wants to use at least one paycheck to pay half and make small minimum payments later. The other part of me wants to use my 401k and pay it off entirely. Or just deal with it as it is and struggle to pay the $140.00 each month. What to do? Which is the best choice?