Hi All,
Since October of 2010 (yes, 1.5 years), I've racked up enormous (to me) debt due to a severe gambling problem. I'm proud to say that has been treated, and I'm recovering, but the debt is still there.
I have basically no assets.
I bring home $1150 every 14 days.
Here are my debts:
$2,500 to a Credit Union - personal loan (CURRENT - 7% interest)
$3,500 to a Credit Union - visa card (CURRENT - 11%)
$12,000 to a Credit Union - personal loan (CURRENT - 12%)
$2,800 to Paypal credit card (19% - CURRENT)
$2,000 to PNC credit card (16 % - CURRENT)
$500 to Chase credit card (19% - current)
$500 to Capital One credit card (20% - current)
-----------------------------------------------------
$1,500 to Western Sky (payday loan - 429% - late) waiting for default to make settlement offer with collection co.
$1,300 to CashNet (payday loan) - will pay $333 over next 2 months to satisfy this.
Anyway, as you can see, I have a ton of unsecured debt in addition to $330 in student loans I have to pay every month.
My credit score is already down to 450, and I have no money in my bank account.
I want to save up some money because I can't keep living like this.
What should I do?? Debt settlement? Skip payments on all of the unsecured loans until they are charged off and then make deals with collection co's? Won't I be sued?
I want to pay, but my minimum payments + rent + food + gas = my entire income.
Should I call to ask for lower payments on everything? Are credit unions / credit card co's receptive to that?
Thanks for any advice!
Debt Samaritan
Posts: 16529
Credits: 288386.73068296 Send message to SOAPLADY
What state are you in???
The credit union ....they more than likely will not settle that much or they will sue. They are responsible to the membership. Plus they will cross collateralize....this means if you have any money in your bank account they WILL take it. I would highly suggest opening another bank account.
http://www.debtconsolidationcare.com...allenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.
SOL for all states
http://www.debtconsolidationcare.com...imitation.html
I'm in Kentucky, but all accounts opened when I lived in Ohio.
I don't have any money in the credit union account.
Should I skip some payments so I can atleast build up something to live on?
Debt Samaritan
Posts: 16529
Credits: 288386.73068296 Send message to SOAPLADY
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html
Read the laws for payday loans in ohio....ohio is a loan interest loan state and no rollovers are permitted. Term of loan is max of 31 days,. So it sounds like you owe principal only. Lets wait for ohiogal to chime in tomorrow morning...I will send her a pm.
http://www.debtconsolidationcare.com...allenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.
SOL for all states
http://www.debtconsolidationcare.com...imitation.html
The CashNetUSA one is a CSO, so I'm sure that's legal --- they are pretty well known and do a ton of business in my state, so I doubt they are doing anything illegal.
I'm looking for advice on what to do with the other unsecured debts. The loans/credit card is from 3 different credit unions, plus some credit cards from major banks.
Debt Samaritan
Posts: 5223
Credits: 71531.316580171 Send message to OhioGal1
Good morning!
I want to work out a settlement plan for you but I need to know how much you're paying monthly on each of the credit cards (don't need credit union info).
It appears you've already worked out a payoff arrangement with CashNetUSA so that's good.
WesternSky is tribal and illegal. How much did you pay to them before default?
I am not an attorney. I am not offering legal advice. The information and ideas I share are my opinion only and do not necessarily reflect the opinion(s) of the owners of this website.
I believe the CashNet one is perfectly legal since they are a CSO.
I'm most worried about what to do with the unsecured loans/credit cards. Should I skip my payments for a while?
My credit is already trashed.
I need to save some money to live on. I have $100 right now, and it's killing me!
Sorry - didn't see there were responses before my last post!
Here are my minimum payments:
Here are my debts:
$128/ month $2,500 to a Credit Union - personal loan (CURRENT - 7% interest)
$105/ month $3,500 to a Credit Union - visa card (CURRENT - 11%)
$205/ month $12,000 to a Credit Union - personal loan (CURRENT - 12%)
$75/ month $2,800 to Paypal credit card (19% - CURRENT)
$65/ month $2,000 to PNC credit card (16 % - CURRENT)
$25/ month $500 to Chase credit card (19% - current)
$25/ month $500 to Capital One credit card (20% - current)
-----------------------------------------------------
$198/ month for the next four years. $1,500 to Western Sky (payday loan - 429% - late) waiting for default to make settlement offer with collection co.
I've paid them $475 so far, original loan was $1000 + 500 origination fee. I sent them the "your loan is illegal" letter, and they responded with why it is legal. I'm sure they will pursue legal action or very aggressive collections if I don't pay!
$1,300 to CashNet (payday loan) - will pay $333 over next 2 months to satisfy this. This payment plan was agreed to by CashNet
Thanks for all of your help!!!!!!!!!!!!
Posts: 2
Credits: 137.25 Send message to commanderbee
I think you doing a good job so far, a settlement sounds good and if you need more help let me know.
milton
Debt Samaritan
Posts: 5223
Credits: 71531.316580171 Send message to OhioGal1
Couple more questions and observations.
Can you break down your actual payments to WesternSky for me? How much have they actually taken from your account. And, keep in mind. They only deposited $1000 into your account, that's all they're getting back. Their $500 processing fee and the interest and other fees they're charging are a bunch of BS. You don't owe them anything, technically, so, they should count themselves lucky they're getting back what they gave you.
Can you tell me where the rest of your money is going monthly, and break it down. How much for rent, gas, groceries, utilities, etc.?
Thanks much!
I am not an attorney. I am not offering legal advice. The information and ideas I share are my opinion only and do not necessarily reflect the opinion(s) of the owners of this website.
I've made 2 payments to Cash Call (bought the loan from western sky) - 1 for $250 and 1 for $198. I guess I technically owe them nothing, but I'd be willing to pay back the other $550 just to get them to stop calling.
They are reporting on my credit (which doesn't really matter anymore because my credit is trashed)
I'm worried about them calling me everyday and then selling to a collection co or suing me for some astronomical amount - like $5,000 by the time they sue me and interest accrues.
I pay:
$50 for cable/internet
$60 for phone
$200 for gas
$150 for groceries
$175 for car insurance
$80 for utilities
Per month.
I'm also worried that if I stop paying the credit union loans that they will sue me and try to take me to jail. The largest loan I have was a consolidation loan which went to payoff 3 credit cards. It did payoff the cards, but I used that credit again (gosh, I'm an idiot).
Thanks again for your willingness to help
Pages
Add new comment