Youthful stupidity and easy access to credit cards has caused my debt. With about $40,0000 in student loans and $20,000 in credit cards, I'm so deep in the hole I can't see out. I decided to hold off on counseling and try to handle this myself, first. I have a question about repayment. My student loan creditors are already garnishing my wages (ouch), so that's taken care of by itself. All my credit cards have been turned over to collection agencies. I talked to a few who told me that they'd cut my balance (from $3,800 to $1,000) if I could pay $1,000 now. Of course, I can't. So I got set up on a $50 per month plan. I still have a few more creditors to contact. My question is: Is it better to sock money away in a savings acoount until I get a nice pile, and then try and cut a deal? Or is it better to make a $50/month payment at a slightly reduced balance ($2,400 instead of $1,000 straight out)? I should probably note that I haven't paid some of these people any money since 1996, so they are probably shocked to hear from me. Thanks!