Help with credit card debt please

Hi,
I have the most basic sounding problem many of us seem to have. I had a credit card through CitiBank while in college that I did not make payments on for a while...let's say it's been about 2 years at this point. The credit card debt has been placed with ARS at this point, and the debt is for $3952 up to now. I have recently got to a point where I can make payments of about $100 a month on this debt, which could be more sometimes depending (but keep in mind I have student loan debt that I pay on every month--in excellent standing--and am expecting a new baby in two months--so finances are tight). My question is this: what would be the best way to deal with this situation? I have ignored all correspondences because some people have told me not to talk on the phone with them, others say consolidate, others say it's not enough debt to worry about consolidation, while others say to try to negotiate a payment plan via mail. I'm very confused. I know if I only pay $100-$200 a month it's going to take a while to pay it off, but this is all I can do right now...which is better than nothing, right? Please help! I want to have this taken care of asap.

When you signed up did you opt for the free consultation? If so you will be contacted by a professional who will help you explore your options!

No, I don't believe I did opt for the free consultation. I also would like to add that I am extremely new to this whole thing so anybody who offers me ideas, please keep this in mind when replying because I don't know what a lot of things mean...I'd love to have the time to talk to somebody. I guess by posting this I'm just looking for a "way in," if that makes sense. I do, however, see the link for free consultation. Thanks!

Also, now that I'm looking at the link for the free consultation and the information they require, I'm wondering if I'll know in advance when they'll call. I'd still love to receive replies in the forum, but will probably do the phone call thing next week sometime. Thanks again!

Well the debt consolidation might help, but since this debt is 2 years old and you haven't paid anything on it I would try and settle this account, you should be able to get it settled for 35% - 40% of the balance because it's so old. 40% would be about $1510 - so if you saved up $200 per month you would have the money in about 7 months, also most settlement companies would let you pay this over 90 days, I suggest saving up for 4 or 5 months then calling them and see if they will take the $1510. Pay them the $800 or $1000 you saved up and pay the remaining amount over the next 90 days. This will get this account taken care of once and for all. Just be sure to get the settlement offer in WRITING before paying anything! And if you can save up even alittle more per month you can get this taken care of even quicker. $250 at 6 months gives you the full $1500. Or if you get any taxes from the new tax "rebate" put that all in a account to take care of this. It will give you peace of mine to get this debt done. Also - since you have just the one account you should be able to focus all your extra money to clear this up.

I would love to focus all of my "extra" money to clear this up, but I'm pushing it with $100 a month (which could easily be more, but this is the minimum I could pay...it depends on how much I work, which, given the new baby coming, I'm not sure). I have two young children and one more on the way, over $40,000 in student loans to pay off, other bills to pay like heating expenses and electricity, not to mention food, clothes, etc. I work part-time, and my husband makes the bulk of our money (and will be getting our income tax return and rebate to pay our car off and to pay the uninsured portion of the labor and delivery part of childbirth). He doesn't know about this debt as it was something I did before we ever married. (I know, I should tell him, but I seriously don't want to if I can handle this on my own. He would understand, but I'm very embarrassed about it.)
So, to reply to your suggestion, you think I should be able to settle this account for around $1500? How do I go about setting this up exactly? Would I write them (ARS) and request a settlement offer, save the money up, and then begin repayment? I see what you're saying to do, but am not at all sure on how to go about doing it. If I get a settlement in writing, how would I postpone the payment for 4-5 months? Should I wait another 4-5 months before I write them? Can I get sued during this time period if I do this (for whatever reason, like the amount of time I've waited to pay them)?

Well the first thing I would do is see if you can take a "hardship" status on your student loans. How much to you pay them each month? If you can work this out, then you wouldn't have to pay your student loans for 6 - 12 months, this would give you enough time to get back on your feet and time to adjust with the new baby. I would do that first before anything. See if you qualify. If you do then use that payment and your $100 a month to get the $1500 as soon as you can. Normally settlement offers do not let you make on-going payments. So sending them $100 a month will do nothing. The most they usually extend is 90 days, so you will need to have the bulk of your money ready. If the hardship status doesn't work, then you need to just save up the $100 until you have the $1500 and write them a letter. There are sample letters in the DIY section and one of them is the "unsolicited offer", it's basically the form letter you can use and just fill in the amount your offering, etc. Mail that certified to the company and see what they say. You could also just call them when your ready and say your now in a position to try and settle this debt and do do that for $1500. If they accept make sure you get it in writing before sending anything - this is really the most important as others have heard it over the phone and thought everything was fine, it's not, get it in writing and then pay them.

I'm actually planning on filing for Economic Hardship Deferment next month so that my husband can take 12 weeks off for paternity. I know I qualify for that, but could certainly take a year off of loans instead of 12 weeks based on my income alone since the loans are mine and not his (were taken while still single). My main concern is this: I've heard so many horror stories about people having lawsuits filed against them. If I wait 6-12 months (probably more like 6) to try to negotiate a settlement with them (which they actually recently offered me one of), will this long amount of time, given the amount of time that has already passed, cause them to file a suit? Or is this amount of money not enough to even be concerned about?

I would say the amount of money and if they haven't tried to sue you yet your probably ok. If you were closer to the SOL date - usually 7 years I would think your chance of getting sued is greater. I would try and take the hardship loan for a year if your interest rate isn't to high. Then I would focus taking care of this debt and use this time to get anything else paid off that you can to reduce your monthly expenses to the bare minimum so in a year from now you will have the money to start making the payments again and put some into savings. Now would be a great time to clear everything up so you can start fresh.

First and foremost, tell your husband. Secrets like this have a way of festering and growing if kept in the dark. You will be surprised at how much better you will feel by just telling him and the two of you working on this together. AS far as debt goes, it's really not that big an amount you can't overcome. If you are currently making your student loan payments, you can request a foreberance and take a break from those payments to throw all the money you and your husband can at this debt to pay it off quickly and move on.

Talk to you husband - imagine if he finds out about this 18 months from now how much worse it will be then.

As ism has stated, talk to your husband and never keep financial secrets from him. Trust is very important. You sound young and your debt is very doable. I would also suggest that you and your husband get on a budget and financial plan that you both are a part of. Read Dave Ramsey's book The Total Money Makeover, it will give you a roadmap for your finances. Having a plan and doing it will help tremendously.