Debt consolidation or debt settlement?

Question:

I just got separated from my husband a few months ago and ever since then he has not helped me pay for any of our credit card bills. We owe a little over $20,000 and most cards are unfortunately under my name because I had better credit score than him. One of the creditors started raising up the minimum monthly payment over 200% and the APR went up to 34 and I hadn't even been late on it yet. I have not been able to pay on this particular account for a couple of months now and I've been getting letters where they say they can help me lower the APR and what not but first they want me to pay $1500 to see IF I qualify. Would it be better to do debt settlement, consolidation or should I keep trying to work w/ the credit card company myself? And what companies would you recommend me using if any at all? Help!

Answer:
I have always been a big believer that no one else can do something for you that you cannot do yourself. Therefore, learn all you can about debt management and talk with your creditors and see what they have to offer you. You can negotiate with them and you will find such a personal approach will be well received, especially as you progress and clear the debt. My profile under debt has more information if you need it.

i would say you need help with a debt consolidation place they negetotiate for a 3-6 percent interest rate which lowers your payments at 32 you will be paying for 15 years . it doesn't cost you anything to talk to a debt consolidator and see if that helps you out any the one i am using is called debt consolidators

I believe settlement is worse for your credit that consolidation. What ever you do, don't pay anyone just to see if you qualify.
Most credit card companies will work with you to get you caught up, but only you know if you can pay them off after the minimums are back to normal. Keep in touch with the cc companies, tell them you're recently divorced.

Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.

Debt consolidation or debt settlement?

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