interest on credit card debt

we owe 15000.00 in credit card debt and have been making minimal payments. one credit card has a judgment and the other 2 are with an attorney collecting for the creditor. our payments are literally making no difference and our balances keep rising. we have requested over and over for them to lower the interest so we can try to pay down our debt. they never respond. what can we do? we don't want to stop sending somethng, but at the same time it seems like we are just throwing our money, that could be used to pay off other debt, down the drain.

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Dec 21, 2011
interest on credit card debt

Rather than requesting a lower interest rate, you may want to consider two other options that would probably help you resolve your debt problems faster. One option is to try to settle the debt. (You may not be able to settle the debt that you were sued for, but it's worth a try.). When you settle a debt, you pay it off for less than what you owe on it. You can try to settle your own debt or you can work with a settlement firm. If you hire a settlement firm, choose carefully so that you can be sure you are working with a reputable one.

There are a couple things you should know about settlement however -- you must have defaulted on the debt to be considered for settlement, which means that you put yourself at risk for creditor lawsuits; it's a back and forth negotiation process; you must pay the amount of whatever settlement you are able to negotiate in a lump sum; and the creditor that you settle with is obligated to send you a special form that you must file with the IRS because whatever you save as a result of any settlement you negotiate is considered income by the agency and you may have to pay more in income taxes as a result. Listen to our debt settlement podcast to learn more about the subject, debt settlement podcast.

Another option is to find out if you are a good candidate for bankruptcy. If you are and depending on the kind of bankruptcy you file, you can wipe out most if not all of your unsecured debt, including credit card debt, and get rid of judgments too. It's best to let a bankruptcy attorney determine if bankruptcy is an appropriate option for you and if it is and you decide to file, it's always advisable to have a bankruptcy attorney handle your bankruptcy. It's a very complicated process and to get the most benefit from it you really need professional help. To arrange a free consultation with a bankruptcy attorney, go here a free consultation with a bankruptcy attorney. Also, before you do, you may want to read our series on bankruptcy so that you have a better understanding of the process, bankruptcy exemptions.

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