39000 in debt!

[firewoodman]

I owe 19000 on amex and another 20 on my bmo mastercard.

I only net about 2000 month and have no other assets, and i am paying 500 interest on the two cards each month.

what do you think would be best a comsumer proposal or debt settlement.

[Canadian]

What are the intererest rates on both cards? Have you talked to AMEX and MC to lower your interest rates?

[trent]

If you can pay your debts when they are due, then you are solvent, which means that consumer proposal is not an option. If that's the case then you can either try getting a debt consolidation loan, or you can go for debt settlement.

[firewoodman]

I heard a proposal get's rid of 75 percent of the debt, and debt settlement is only around 40.

[Canadian]

I'm not sure if you can reduce the principal by 75%. Where did you read that?

[trent]

Originally Posted by firewoodman

I heard a proposal get's rid of 75 percent of the debt, and debt settlement is only around 40.

Any progress with that? Have you decided which way to go?

[firewoodman]

I got them to reduced it to 5.9 till payed off. That way i still have great credit.

[Jason]

Originally Posted by firewoodman

I got them to reduced it to 5.9 till payed off. That way i still have great credit.

That's great news! Did both BMO and AMEX reduced it down to 5.9%?

[Canadian]

There will be more cases like firewoodman in the future, and this will hurt the profitability of the Canadian banks immensely.

[trent]

Originally Posted by firewoodman

I got them to reduced it to 5.9 till payed off. That way i still have great credit.

That's great. The question is would any financial institution be willing to lend you money in this economic environment?