Re: hardship programs with the CC companies?
Internal hardship programs are typically less than one year and the criteria are proprietary so no one is going to be able to tell you exactly what will trigger a hardship path versus a collecctions path.
They typically can offer you a lower payment by offering lower interest for a period of time. Overall, what the CC compay can and can't do in this regard is regulated by the OCC (Office of the Comptroller of Currency). It is unlikely that the payments would be cut in half.
Credit counseling operates on a similar principle, but the credit counseling program can be 5 years long.
You cannot take two bites out of the apple, however. So, if you get on a hardship program you typically cannot then get on a credit counseling plan and vice versa. Also, if you miss payments you will lose your concessions on the hardship plan and they typically cannot be reinstated.
I suggest you think about going on an internal hardship program with 40K debt. You are not going to pay that down in only 6 months and you won't be able to get another hardship program from the companies, as they are regulated in this regard. A debt management plan through credit counseling may be a better option b/c you can get the reduced interest and waived fees for a longer period of time.
ke's universal disclaimer
: In my posts, when I post about marriage, canon law, or sacraments I am talking about Latin Rite
only, not the Orthodox and Eastern Rites. These are exceptions that confuse the issue and I am not talking about those.