Credit Card Issues
Have a Citibank card that jumped from 8 to 14.5% Interest on the current balanace. My balance is over 20k and the monthly payment is about $400 more than I can afford. I have called Citibank and spent two hours with them telling me that there is nothing they can do when in the past they have worked with me.
I had never haev missed a payment with them and in the past they adjusted my rate so I could make payments now they won't do anything. I even explained to them that if they just adjusted the rate or extended it they'd still make money and I do not want to close my account and have been a loyal cardmember for over 5 years. I was told by a senior account manager that I would have to default and then call back so they could work out a payment arrangement at which point I told them that was unacceptable.
Now I am in a pickle. With $400 over what my income allows I cannot pay this off even if I cut out necessities. My only recourse now is to go to some kind of debt management program but I also have other cards I am paying off and I am wondering if anyone has done this kind of program before and what kind of impact it has on your credit report at least for the next 3-5 years. My car will be paid off in 3 years. I don't want to debt settle because that will really hurt my credit for 7 years and I don't want to file bankruptcy because I could lose my home and my car!
What are my options here. I have escalated with Citibank but now I need to know what to expect next and if I go with a debt management program.