No contact your lender and negotiate. Offer to pay 2k and close the account. If unacceptable then ask them to freeze the interest and close the account. Why pay someone to do what you yourself can accomplish for freeThis isn’t a huge amount of debt. Debt consolidators have you deliberately default on your accounts to settle for less…You don’t need to do this…it ruins your credit rating and they don’t deal with people with this small amount of debt to begin with. Any settlement on your accounts will greatly damage your credit rating.

If you still have good credit, you can try to get a real consolidation loan at a lower rate. Many people who get debt consolidation loans quickly find themselves in twice as much debt as when they started….because it’s simply too tempting to start using all that newly available credit that was paid by the consolidation loan. If you get this type of loan, contact your credit card companies after the debt has been paid off by the loan and request voluntary credit limit reductions to under $500 to avoid the temptation of using all that newly available credit again.

If you can’t do this:
Check out the debt snowball method:

http://en.wikipedia.org/wiki/Debt-snowball_method

If you’re stuck in a situtation where you can’t really pay anything more than the minimum payments on all your accounts….and all accounts are very high interest, then you may want to enter into a non profit debt management plan like Consumer Credit Counseling Services (CCCS). They can negotiate reduced interest and you have just one payment per month to make. You can get a referral at: http://www.nfcc.org

The ultimate resource for american debt solutions

Tags | debt consolidator