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I have been paying around $1,000/month with almost 20% APR. Then they put me in a program where I am paying $661.00/month with 2% APR. My problem is that I could no longer pay that amount and I would like to know what will happen after I stop paying? They told me they would put me back to the 20% APR and if I still do not pay, they would give my account to a collection agency. I know this will affect my credit score, but since I could no longer pay $661.00/month, what can I do before or after they give my account to a collection agency? I need an advice on what to do?

Unfortunately, if you already reduced your payment from $1000 to $661 and still cannot keep up with the credit card debt payment, you probably need to seek professional debt relief help before the problem gets worse. I assume you have stopped accumulating more debt and the reason why you can no longer afford the $661 is due to a change in your income.

Once you have stopped using your credit cards and tightened your budget to squeeze every penny out of it AND you still cannot make the $661 payment, then you have a problem that needs to be dealt with. You are doing the right thing by researching your options BEFORE the situation gets out of hand.

You may read about debt management and debt settlement.

You may also want to reference this pagearticle about credit card debt. Thank You for the question.