How to reduce CC balances and Interest rates?

[maxwell18]

Has anyone just stopped paying credits cards and wait a while to re negociate (sp) credit card balances and intertest rates. If so did you use a lawyer and how did it work. All my income is exempt and can prove it. Just can't keep up anymore with them raising interest rates and lowering credit limits. I know I have been living on borrowwed money and time. Don't want to file bk getting too old.
Thanks

[HHM]

It doesn't work that way, (unfortunately).

If you stop paying, your interests rates will go up. Before you default you can see if they will do a hardship flip of your CC balances. What I mean is, the credit card lender will close your CC's, and turn them into a closed end loan at a reduced interest rate. (think of it like a personal loan). If you default, then all you are left with is a settlement scenario where you would need lump sum cash if you want to pay them.

As far as getting too old to file BK, that makes no sense. Why not just file BK instead of wasting money paying anything to your creditors.

[maxwell18]

The reason I asked those questions is from reading this site where folks have stopped paying cc and were offered reduced balances without filing bk. The other statement about age is I am 67 and if I file bk I will be 72 and it would remain on my credit file until I was 77, (not sure I will be around then) I don't have a problem with my age it's so final going BK now for me.
Thanks again

[flyinbroke]

There is a catch 22. They won't do hardship till you default. I have tried to lower interest rates, or get lower payments. I was told I was not in financial trouble since I was paying my bills...until an emergency struck. My credit was denied (on a line of credit with 3K on it, would not let me access, other cards were CLDed to max) so I had to rely on cash. THe only way I had cash was to stop paying cards that were pointless to me. I am over 30 on 2, approaching 60 and the best I got was one 60 month at 4 percent which left my payment SLIGHTLY lower than my minimum. I declined it. BoA yesterday said I could not get a program, but could I make minimums and they would get rid of the lates. No I can't. I like having cash on hand. I hear they will be game to settle when it is close to chargeoff time. This does not always happen though.

I am not sure about BK yet; I don't have to do the means test because of a veteran exemption to certain disabled vets but I make way more than the mean and won't get a 7. I also don't want to screw over a few of my creditors, who have been good to me. I may have to do that depending on those who I have stopped paying.

At your age, BK is a better option. At least live out the rest of life in peace, and credit will bounce back fast.