I owe $30,000 in credit card debt and $10,000 in student loans. I recently quit my job as a teacher and have started a seafood sales business. I live in Mississippi and I am taking advantage of the rebuilding of the seafood industry after the Hurricane. I have been contacted by credit consolidation co.'s and I know that I don't want to hurt my credit any more than it is. I have up until now paid on time and want to be proactive. What should I do? Can you negotiate with credit card co.'s on your own or should I let one of these consolidation co.'s do it for me? I have not used any credit cards in over a year and most of the expenses occurred after my home burned three years ago. I am agonizing over this constantly. I am divorced, no kids, but have several rescued dogs that need medical treatment. I am clearing about $2200.00 a month and have nothing left and will be in much more debt as I try to pay for health insurance. If someone can offer a direction for me please do. Thank you

Can we assume you have no assets such as life insurance cash value, home equity or other funds in CD/s, mutual funds, etc ? If you have none of these and you are truly reducing the debt by $2,200 a month and you owe $30,000 in credit card debt, at that rate, and should you stay healthy with no unforseen major medical expenses and no additional incurred debt, then the debt would be gone in about 14 months or so. If this is all correct, why not call each creditor, tell them you situation and what you are trying to do, ask it they will reduce your interest rate. If they agree, you should be out of debt slightly sooner without jeopardizing your credit any further. As to health insurance, I would see if I could find quotes on health ins policies that offer large deductibles such as $2,500 or even more but that cover major medical expenses up to a least a $1,000,000.00 min or more.

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Originally Posted by RichardBondMan

Can we assume you have no assets such as life insurance cash value, home equity or other funds in CD/s, mutual funds, etc ? If you have none of these and you are truly reducing the debt by $2,200 a month and you owe $30,000 in credit card debt, at that rate, and should you stay healthy with no unforseen major medical expenses and no additional incurred debt, then the debt would be gone in about 14 months or so. If this is all correct, why not call each creditor, tell them you situation and what you are trying to do, ask it they will reduce your interest rate. If they agree, you should be out of debt slightly sooner without jeopardizing your credit any further. As to health insurance, I would see if I could find quotes on health ins policies that offer large deductibles such as $2,500 or even more but that cover major medical expenses up to a least a $1,000,000.00 min or more.

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My income is $2200.00 at present. My minimum monthly and other expenses are more than this. I am going to call the credit card banks and try to negotiate. I called Bank of America where I owe over $12,000 at 17.99% and they reduced the rate to 6.75% but I had to give them 12 check no.'s for the next year to insure that they are paid on time. I have a Discover and two other bank cards that total $18,000 and are at much higher interest rates.