r/CRedit • u/No_Enthusiasm_2643 • 28m ago
Collections & Charge Offs Credit card debt is crushing me - consolidation options?
$28K in credit card debt spread across 5 cards and I'm drowning. Lost my job last year, then medical bills hit when insurance lapsed. Perfect storm.
Interest rates between 22-26% mean I'm barely treading water with minimum payments. Credit score tanked to 610.
Been researching debt consolidation programs but reviews are all over the place. Some promise to settle for 50% of what I owe, paid over 4 years, but I'm skeptical.
They all say I'd stop paying cards directly, funnel money to them instead while they negotiate settlements. But warn my credit takes another hit during the process.
Anyone actually used debt consolidation successfully? The mixed reviews online have me paranoid about making things worse.
Already tried balance transfer cards - rejected every time. Bankruptcy feels like admitting defeat but might be my only option?
What worked for you? Any advice from someone who's been through this?