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?
By signing up for counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the pay off amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.