I can no longer pay the open balance of credit card debt.?

Answer 1

Does that mean you can't pay the minimum payment? If so, you have a few options. First, try very hard to come up with the funds to make those payments: can you turn off your cable? take in a roommate? start a part-time job? go out to eat less often? If you don't make your payments on time, it has the potential to cause your interest rate to rise on this credit card (and, potentially, on other credit cards if you have a universal default clause). Second, (and you should do this regardless), you should call all of your credit card companies and see if you can get a reduction in the interest rate you pay. (If you go to www.oprah.com/jean you'll find a script for how to talk to them.) This will work about half of the time, assuming that you have been paying your bills on time. Third, as a last resort, you should talk to a credit counseling service. They will do an intake--it should take about an hour (be worried if it takes substantially less time) to see if you are a good candidate; if you are, they will consolidate your debts into one payment, usually at a lower interest rate, and then you'll just have to worry about making one payment. The downside is that using this service will put a black mark on your credit history, lowering credit score and making it harder for you to get credit in the future. Whatever you do: don't run and hide. Don't just stop paying your bills without talking to anyone at the credit card companies. You don't want to make a mistake that will hurt your ability to get credit for years to come.