Posted on September 14, 2009 at 4:59 pm Here's the situation... I have $81K in outstanding credit card debt spread across 7 cards. CCCSI has offered to get me on a debt management plan for $1800 a month. That's a hefty sum each month, especially for the next 5 years... I'd love to keep my credit score up, but who's to say if I can keep up the $1800 a month for 5 years, let alone this year. I was going to look at bankruptcy, but the thought of my financial future for the next 10 years being decided by a judge doesn't sound appealling. Anyway, here is my thought... 2 of my biggest accounts are with Citibank and Capital One... each for $23K. That's $46K with 2 creditors. What if I don't pay them for a few months and try to settle for 40% in about 90 days? Anybody try that while staying current on other accounts? Do they look at your credit report and see that you are current with other creditors and balk at that? As for the other 5 cards totalling $35K, I'd stay the road and negotiate a debt settlement plan with each one of them... lowering my interest rate and paying off within 5 years (at about $800 a month)... thus trying to salvage some of my credit. Curious for feedback. Thanks and good luck to all that are in this situation!

Posted on September 15, 2009 at 3:49 am What if I don't pay them for a few months and try to settle for 40% in about 90 days? Anybody try that while staying current on other accounts? Do they look at your credit report and see that you are current with other creditors and balk at that?I'm not at all a debt negotiator, but I don't think that that's a good idea. I think they'd find out and not settle.

Posted on September 15, 2009 at 4:23 am I have $81K in outstanding credit card debt spread across 7 cards. CCCSI has offered to get me on a debt management plan for $1800 a month. That's a hefty sum each month, especially for the next 5 years... I'd love to keep my credit score up, but who's to say if I can keep up the $1800 a month for 5 years, let alone this year.Why does it have to be a mix of debt settlement and debt management plan? I think debt settlement alone can help with your credit card debts. If you want to know how much it's going to cost you, what the fee structures are, please feel free to fill out a form here and have a debt consultant assess your situation for free. That monthly payment of yours can be still be reduced via a debt settlement program.

Posted on September 15, 2009 at 4:26 am I agree with Chairman, stick to debt settlement. Instead of 5 years paying that much monthly, pay a lesser amount for 12-36 months. Debt settlement companies usually charge 15% of the total debt amount and spread the fees out over 18 months. Or, they will take a percentage of the settlement amount, usually between 20-25%.

Posted on September 15, 2009 at 4:32 am Indeed, Why does it have to be a mix of debt settlement and debt management plan?To add to what they've said, you are already worried about the DMPs lasting for 5 years. Rightfully so coz if you miss any payments at all, these agencies reserve the right to kick you out of the program as many of them are owned and funded by the creditors themselves.How does it affect you? If for example you have been making payments for 2 years but is not able to all of a sudden, you'd end up right back where you started.

Posted on September 15, 2009 at 4:35 am Just curious, did you say that you're going to do a do-it-yourself debt settlement? Do you live in one of these states? GiorgiaIdahoKansasMaineMississippiMinnesotaNorth and South CarolinaUtahWisconsin

Posted on September 15, 2009 at 4:37 am That's an interesting question Arquivos, coz I myself do not know the temperament or character of either Citibank and Capital One--I don't know how they work let alone settle accounts...have you worked with them before jonincamas?