March, 2016

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Hanging on the cliff but reluctant to make a move

I got myself in a pretty good pickle, and I’m starting to realize it may be more of a pickle than I thought. I had two credit cards one with $10K and one with $8K. With the higher electric bills and other raised expenses I was just making the minimum payments to keep me in my monthly budget. Chase raised my rate to 29% soon after that payments started being made late then Bank of America raised my rate to 31% from 0% for being 3 days late. I decided I needed help so I tried for a home equity loan to consolidate the two high interest cards. My credit score has dropped from 780 to 530 and i have only owned my home for 8 months so I had no luck with lenders. I have been considering a CCCS but have been reluctant after reading the posts to this group. I did manage to acquire a new credit card through USAA who only deals with military persons, ($10K limit) and was able to transfer the $8K/31% to the new card at 0% for the life of that transfer. I’m expecting a raise after the new year and the wife is in search of employment which will help in the future but for now I’m getting deeper and deeper. I’ve read this statement in an earlier post :

****** “But I stand by my original statement that if you can afford a CCC then you don’t need it as there other programs out there that can do an even better job.*******

I would really like some info on these programs. I am in the military so bankruptcy or debt settlement would do more damage than good for me ( separation from service due to fiscal irresponsibility). Can anybody out there steer me in the right direction???

First suggestion: Contact the executive offices of the credit card companies and see what you can negotiate with them. To get those offices look up the companies at www.bbb.org the better business bureau website. You can also file a complaint with the bbb over their abusive interest rate practices e.g. raising a credit card rate from 0 to 31% for being 3 days late. Also check out Scott Bilker’s site www.debtsmart.org. And also ask the military if they can help you. Good luck to you!

I have read your post, and the response from Ben. Ben makes some good suggestions, but factually they will not do much for you as you are in the military.

And you are right debt settlement and bankruptcy are out of the question for you. I was in the military too so I know from first hand what financial situations can do to you ( I once bounced a check and they put me on extra duty for a month.)

I was in the Army and I know that they do have programs that can assist, but I don’t know about the other Aremed services, but If the Army has them then there is a good chance that the Navy, Marines, Air Force and/or Coast Gaurd have them as well.

And thank you for quoting me about “if you can afford a CCC then you don’t need them.”

Write back if you have any other questions. There may be other options as well which I could tell you about if you let me know a bit more about your situation.

Does this help you at all? Let me know.