I owe approximately $40,000.00 worth of credit card debt.20K is at 4.2%; interest, 12K is 10% interest and 8K is 12% interest. I have never been late or missed a credit card payment. My credit scores are around 550 because I have not paid my 1st or 2nd mortgage in 22months. Since I am not paying my mortgage I have the money to pay my creditcards, however lately I have been thinking I am throwing my money away. Once my home issue is resolved by either short sale or foreclosure I will have a hard time paying all the credit cards and affording a place to live.
Thoughts or suggestions? Should I keep paying or stop paying and save the money for a credit card settlement in a year or so?
Any help from those who have been down this roadis greatly appreciated.
Also CH7 and CH13 are not options I can currently use.