I have a Citi card with a debt in the $10,000 range. I missed a payment and the interest rate sky rocketed where I could not meet the minimum payment. I had never missed a payment up until that point. Now it is in collections and am just trying to figure out my options. The collections agency is demanding payment in full right now and not interested in a payment plan. They were threatening me with a bunch of stuff. I understand it is a scare tactic, but it bugs me b/c i am willing to pay, obviously I just can't pay it all at once. A debt consolidation company said they can get it out of collections and they can lower the interest rate and yada, yada, yada so I could go that route, but I am skeptical. I recently purchased a home and was thinking of getting a home equity loan to pay it off, but I am not sure if I can do that so soon after buying. Any advice would be helpful.

Northwind_Dagas

Document everything, including their threats. Unless I'm mistaken, they are not allowed to make untruthful threats. (Saying they will sue you is allowed, saying you will lose your house is not). Also, send an offer to make payments on the debt via certified mail so you have documentation when these clowns decide to step it up.