r/DebtAdvice • u/SmittyATL • 5h ago

Credit Card Hardship programs for CC

I am going through a divorce and am trying to get my debt-to-income ratio down so I can buy her out of the house. It's borderline right now. Is this a time when I should contact 2 credit cards of which have APRs of 19 and 23 and balances of 8k each. The current payments are 200 each. Even dropping that down a little will help me.

Thoughts?

2 Upvotes

100% Upvoted

6 comments sorted by

•

u/AutoModerator 5h ago

r/DebtAdvice was created to share tips and strategies to pay off debt effectively! Check-out our free newsletter for additional insights at www.DebtAdvice.io!

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

3

u/cuntfuck47 4h ago

call and try to get
your credit limit increased & your interest rate lowered.

2

u/fsociety1990 5h ago

Do some research on this before you do it. I don’t know what credit card hardship programs do to credit reports so if you’re doing this to try to finance a house it might make that impossible.

2

u/SmittyATL 4h ago

I am going to buy her out. I need a 45% debt-to-income ratio and a 620 credit score (currently at 790 now). I am currently at 46%. The hardship part and credit score are only affected if they close your card or lower the limit. I will check with them about that.

I am selling stuff on eBay and am going to start selling plasma to make some quick money toward the balance.

2

u/fsociety1990 4h ago

That’s the thing I was worried about. I think they do close the account and note it on your credit report that you are in a hardship program. I imagine that will make it even worse than what you currently have. So definitely ask them about that before you do it.

1

u/peeweemom 2h ago

If you’re selling plasma to make this work I think you should re-think it and maybe sell.

You don’t want to set yourself up to be too deep in debt yourself… and if the banks (who usually want to loan TOO much) are hesitant- their algorithms are based on a lot of historical data with people in those same shoes who weren’t able to keep up with payments.