June 27th, 2010 
admin I’m fed up with credit card companies. I’m in debt over my head trying to keep up with my payments. These credit card companies are nothing more than legalized loan sharks. I might have been late by one or two days and now I’m being charged between 25% – 29% on all of my accounts.
I am barely making it, after I pay my bills every month I have nothing left. For about a month or two I’ve been thinking about chapter 7 or a debt consolidation program. I’ve been hanging in there trying to make my payments but what happened to me today has tipped the scales in favor of filing for chapter 7.
I tried to make a payment today on my Best Buy account and I noticed I had been already charge a late fee. I was confused as to why I was charged a late fee when I was not late. Then I noticed my due date was changed to the 25th of every month instead of the 27th. When I called them up I found out my due date was changed to the 25th back in February and that I was unknowingly paying late charges ever since. I wanted to know why my due date was changed and if they could remove the late fees.
I was given no explanation for my due date being changed and they refused to remove the late charges. They said they notified me of the changes and I should have known. I’ve been paying my bill on the 27th for 4years, and one month you decide to change it to the 25th how am i supposed to catch that.
That was the last straw for these credit card companies for me. I want to file chapter 7 but I’m worried about getting another vehicle when my lease is up 2011. I was also thinking about debt consolidation but I’ve heard some bad things about these companies too. any advice would be greatly appreciated.
I don’t need anyone to lecture me about running up credit card debt I know I did that. Just give me some good advice thanks
Posted in 
Stay away from any "debt consolidation" company that promises to cut your debt in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.
None of these “debt consolidation” firms have the power to force your creditors to accept settlements. Your creditors have the right to refuse these terms and take you to court.
http://online.wsj.com/article/SB122394458494631223.html
http://podcast.mktw.net/wsj/audio/20081013/pod-wsjlaise/pod-wsjlaise.mp3
A better option is entering a Debt Management Plan (DMP) with a non-profit credit counselor like CCCS (Consumer Credit Counseling Services). Contact your local Red Cross for a referral. They can negotiate lower payments and interest rates. They do not negotiate settlements.
They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to "enrolled in debt management." This does not damage your credit, but it may make it impossible to obtain new credit while you are enrolled in their program….so don’t use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would probably be denied while you’re enrolled in the CCCS debt management program…. Otherwise, it can be a very good way to deal with your debt.
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If the debt is really out of control…then Chapter 7 may be your best bet..just remember that you can only file once every 8 years….not every time you get into financial trouble.
You ran up credit card debt by living beyond your means. You can blame the credit card companies all you want. But it still boils down to the fact that no one forced you to take out those cards and run up the balances.
You should consider a NFCC credit counseling company: http://www.nfcc.org/. These are legit, non-profit companies that offer debt management programs for a nominal fee. They negotiate lower interest and payments so that you can pay off your debts.
While in the program, it is noted on your credit file. But upon completion of the program that notation is removed and you will have decent credit — and hopefully learned something about budgeting and living within your means.
Sounds like you’ve done STUPID with a bunch of zeros on the end. It would appear you have been given one of life’s little lessons. You can’t spend your way out of debt.
Get to Consumer Counseling, not Debt Consolidation. Consolidation is just more of the same borrowing you’re into now.
Talk to Consumer Credit Counselling if they have an office in your area – they do most places, and are legit. If they think you can pay everything back they’ll work with you and with the credit card companies. If they think you’re in too deep they might advise you to file bankruptcy.
I say debt consolidation. F*** the banks. They’ve got this entire country into this situation. They’re getting their bailout, so where is ours.
Research on the web. BTW, this morning BOA verbally agreed to settle for 15 cents on the dollar. Still working on getting that in writing.
Talk to a bankruptcy attorney. Most will give you a free consultation. You can get a referral from your local county bar association.