Getting help when in Debt

[TayRivers 4]

I have been helping my friend and his wife, They have had mega health bills to pay after the birth of their baby son who was born with major problems, sadly he died 3 months after his birth. They are now in debt with their credit cards and outstanding medical bills.

So I have been helping them work out a budget and contacting their creditors. Well I am amazed to discover that because they have struggled to pay the minimum payment on each of their cards the creditcard companies are saying they can not help them as the accounts are in good standing!! they are telling my friend he needs to miss a few months of payments before they will consider reducing the interest rate or agree on a settlement amount.

I also helped them contact their mortgage company to see if they can extend the term of their mortgage as this would reduce the monthly mortgage payments, but again they were told that unless the mortgage was delinquent by at least 3 months there is no help available to them.

I find it very sad that when people want to do the right thing and get help before they end up in a total mess none of the companies are willing to help.

So much for their claim "We are here to help you, just contact us and we will work with you" My friend and his wife have been through so much and it just wrong that no one is willing to help them out.

[Carlawarla 1]

Yes, it IS very very sad. More sad is that I'm sure the bills that have piled up, credit card debt etc. is directly attributed to the health care costs that they had to pay out of pocket for their baby's care!

I read in a St. Louis paper only a week ago, about something similar where the bank that held this lady's mortgage, said they couldn't help her unless she was in arrears two months after she called them and said, I'm worried I'm not going to be able to make my next payment...

So, she made her payment one month, the next only half a payment, then the third month she didn't make any. The fourth month she called them and said...help! They said, sorry, too late!

I'm glad you're helping your friend, what a lovely gift I'm sure you've given them.

It may be time to look at them consolodating their debt or having someone write the credit card companies. If you put forth a payment plan to the creditors, I'm hoping they'll be interested in a plan that will see them get paid, just at perhaps a different rate. I've also heard of some places that will allow you to pay the interest, but adjourn the principle until things are better.

I think what the credit card companies do is to tell their customers this, what you said they told them, so that they're scared into trying to meet those minimum payments, particularly people who are really really trying! I have no doubt however, that even if they send the company a proposal, this will impact on their credit rating. At this point though, who cares is what I say. You do what you have to do to survive.

I truly hope they can come to an agreement with their creditors.