Almost a year ago, I relocated to take a new job. After relocating I was laid off 4 months after the relocation. I had savings but not much since I had just come off of a previous term of unemployment. I have now depleted all of the savings and unemployment also been depleted. I do have other income which is not enough to pay the bills that are coming in. I am paying creditors about 1500 a month. I have tried my local cu and it says "no" due to my dti ratio which I totally understand the risk there. I am looking to apply for hardship programs with cc companies but I am reluctant due to the fact that over the past 5 years I have been rebuilding credit worthiness and cleaning up my reports. I had finally gotten to 700s and then the bouts of unemployment and rising balances. I have not been late on anything thus far and have paid more than the minimum balance and sometimes pif which is why I don't understand how some cards went from 8- 10% to 28.99%. One of the accounts in question is BOA. I had qualified for a 0% interest and a few months later spoke with one of the reps and she was going on and on about how a bt would be beneficial for me....anyway long story short. I am now at 18.99+% and have never been late. So where I was a making a 150 dollar payment and about 80 of that being an overpayment, the 150 is now my minimum.

At this point, I am sure that I can not come out of this situation unscathed but the reason I am asking if debt consolidation would be a viable option, (1)I am trying to have a lesser impact on my credit once its all over. Also, 1400 is not doable for me but 900 is, and (2) I have property that I may be able to use as collateral; however, I would hate to lose a 70K property for 20k worth of debt though I know......ITS BUSINESS!!!!

Any guidance will be appreciated.

Side note....I am diligently looking for work.....but I have no prospects at this time.

Tough situation. I can't think of anything that will lower your payment and not impact your credit. I wouldn't want to risk the property either, however, if you stop paying and get sued, they could put a lien against the property. How important is your credit rating to you?

Some card companies will work with you, others will not unless you are already delinquent.

Credit rating is important since I know that my situation isnt permanent. I don't really care about keeping the cards open, I would just like to be able to pay the balances.

If someone will lend you the money at a reasonable rate, consolidation would probably be best. Personally, I would risk my credit rating before I put my property at risk like that, unless your income is unearned. Things reach a point where you have to decide how much money your credit rating is really worth.

From what we can tell so far, card companies get more reasonable when you are in default, or working with a DMP.