Need Help

[u/Tough_Measurement620]

Hi. I have 3 credit cards totalling around $9,000 in debt. I am trying to do the snowball method with them, but it's just not working. I have one through DCU, one through CFNA (highest amount, interest and late fee accruing every month), and one small balance through Wells Fargo. My credit is bad because I lost my job earlier in the year and had to stop paying the creditors. I have no idea what to do, but I have to do something, because I got an email from CFNA the other day saying I have 2 weeks to pay the minimum (do not have the minimum to pay) or they will use more serious action to get payment. Can you guys point me in the right direction to get help? I want to pay off the debt, and rebuild my credit. I am 33. I make $33,000 gross and $27,000 take home. I use credit karma to track my credit score. Thank you in advance!

ETA: I can not move in with my parents or inlaws. My fiance works and helps where and when he can.

[u/og-aliensfan]

I recommend you contact your creditors about Hardship Programs or look into a Debt Management Plan (not to be confused with debt settlement/relief) through a non-profit, NFCC affiliated (www.nfcc.org) (u/NFCC1951), Credit Counseling organization before you miss any more payments. Both typically work by reducing or suspending interest rates, usually in exchange for closing or restricting the enrolled cards. Monthly payments are often lowered while in these programs, and because of the lowered interest rates, you're usually able to pay debts off faster while saving money. There's no fee to enroll in a Hardship Program, and because DMPs are administered by non-profits, the fees are minimal. You won't incur further delinquencies while enrolled in either program as long as you make payments as agreed. If enrolled in a DMP, credit counseling is available to help you create a budget and manage finances in the future.

[u/nfcc1951 → u/og-aliensfan]

Thank you for tagging us u/og-aliensfan ! OP, based on your post, we agree that these are the two optons most likely to get you the help you need. We also recommend looking into these options ASAP.

We posted a brief comparison of hardshop plans vs. debt management plans (DMP) here on Reddit: https://www.reddit.com/user/nfcc1951/comments/1vlvy76/hardship_plan_vs_debt_management_plan_dmp_which/

Please let us know if you have follow up questions!

[u/soundologist6]

Ok, less credit karma, more of your bank. Your bank should have the means for you to monitor your credit. Now, I suggest calling CFNA and explaining the situation. Your willingness and accountability for the debt is good.

Communicating with the lenders is first, that would be my first step. Hoping something with more direct course of action replies asap! Wish I could be of more help!

[u/og-aliensfan → u/soundologist6]

Ok, less credit karma

Agree 100%!

u/Tough_Measurement620, Credit Karma provides Vantage 3.0 scores. Nearly all creditors (90+%) use FICO scores in lending decisions, so monitor these instead. CK also provides an unsettling amount of misleading information that should be ignored (see linked post below). You can obtain free FICO 8 scores for each bureau from:

• EX FICO 8 www.experian.com
• TU FICO 8 www.creditwise.com
• EQ FICO 8 www.myfico.com

See this post for more information about credit scores, credit reports, and a closer look at Credit Karma.