Here goes...
Date: Tue, 08/15/2006 - 09:58
I have over $110,000 in unsecured debt...actually my wife and I do. I would venture to say that 95% of it has accumulated over the years due to medical issues (bills, premiums at times/COBRA, prescriptions, etc... that we have both experienced, but mostly myself), house emergencies, car repair and taxes. I have had a bad back problem for years (ever since college) and was diagnosed in 2001 with three herniated discs in my lower back. I am not a candidate for surgery because it is less likely to be successful due to being in multiple areas. I have been in a pain management program since then and with therapy and medicine have done pretty well...however it is not cheap. It has also raised my insurance premiums ( when I could get insurance) to astronomic rates. Since 2000, I have paid over $50,000 alone in just health insurance premiums...not including the costs for actual doctor bills, prescriptions, etc...
I am a community consultant and have worked on contract with either the state of Indiana or the County where I live for the last 5 years. As such, I am responsible for all benefits and taxes.
While we have never had "extra" money, we have always tried to pay our bills, and on time. Unfortunately, with the expenses we have had due to medical issues and my being out of work for a few months a couple of years ago, things have gotten progressively worse. It got to the point where most of the rates on our credit cards got astronomical, some up to 30%. It has made it difficult to pay even the minimum, let alone touch the principal. For example, we have 3 cards thru Chase with a combined amount of around $65,000. The total minimum payment for the 3 is around $1,800, with around $1,200 just going to finance charges. With the new laws in effect regarding minimum payments, it is impossible to even try and pay at what they have structured.
I want to do what is right and take care of my responsibilities... We had been paying out around $1,150 a month in minimums on all our cc debt and at least been able to do so somewhat comfortably...even tho the amounts were not going down much, if at all. Then they started increasing our rates, and (bad mistake, I know) I started using balance transfers to try and offset some of this. Needless to say, this just made it worse. I honestly don't know what to do... Also, 2 cards are thru Bank of America, where we also have our mortgage. They did not originally have our mortgage, but have had it for a while.
I started looking at the www.debtconsolidationcare.com website and saw there are many others in the same trouble. I have read thru many of the questions being asked and looked at the advice given. I know that debt settlement is one option. I have also read about a debt consolidation program, which seems to be different from a debt consolidation loan. It says the process is about restructuring the debts with new terms and conditions, to help reduce the total outstanding balance. Is that something that can be done with such a large amount? I know that ours may be an extreme case...but I would like to stay away from bankruptcy at all costs, and settlement also. However, I also know that I cannot make these payments where they are now.
I have looked into one agency, Preferred Financial Services, which is based in Massachussetts. They offer debt settlement but they also seem to charge quite a bit, at least in my mind. $49.95 a month, plus 25% of whatever savings is negotiated. I don't know if that is standard or not. I also got a preliminary call from Superior Debts.
I know this has been somewhat of a rambling message, but there is a lot that goes with my situation...too much in fact.
Thanks for listening.
Here goes.
I am not an advocate for Bankruptcy but did you ever think of maybe even chapter 13? Are you able to keep up with your house payments? Pior to going into even chapter 13 you need to be in some sort of debt consuling and your state bankruptcy court has the names that are approved to use. Even if you are not thinking of anything like that at this time maybe that list would be something to take a look at just in case.
Hi guest.. Well, you certainly have alot on your plate, my frie
Hi guest..
Well, you certainly have alot on your plate, my friend.
May I suggest you register here and fill out your number so someone can call you. The counselors here will talk with you about some options that's best for your situation.
Stay in touch here too, there's alot of people that have been in the same boat too. If anything, you might get a laugh when you need it the most!
Hi You can enroll for a debt consolidation program with the t
Hi
You can enroll for a debt consolidation program with the total amount of your debt but the duration of the plan will be longer enough if it has to match with your monthly payment plans. The interest rates will be lowered down and you will surely save some money at the end of the program.
In case, if you look at the debt settlement program, the total debt can be reduced by 40% to 60%. This can be a suitable plan as per your present situation, but you have to understand the consequences before getting started with the plan. The bills will be put in default for the first four months and the negotiation process will also be time consuming. A new trust account will be opened separately where you have to make the monthly payments. The settlement company starts negotiating with your creditors for a 'settled' amount, the definite results cannot be put in paper. Some companies can longer time to accept your proposals from the settlement company, a few won't. But if your settlement company has dealt with your creditors in the past, positive results can be expected from them. Take a free quote from the counselor in your area. You can get in touch with him after registering in this website. He will give you a call back. Know your options and do some shopping for the companies before you finally decide the program best for you.
Actually, I had registered and I am the "guest" that told the st
Actually, I had registered and I am the "guest" that told the story...what a story at that huh! For some reason, it wouldn't log me in right when I typed it all out...
I would be very interested in a consolidation program...much more so than a settlement program. Would it be available at how much I currently owe? As I said, I can pay a fairly good amount each month, but with the interest rates being charged now...not a chance. I want to do what is right and get this taken care of...even if it takes longer with a consolidation program.
Can you suggest any programs that might be best suited for me, in particular? I am currently on a retreat for my job and out of "phone circulation". Superior Debt has contacted me thru my phone, but was not able to talk to them...so I emailed them my "story" about what was taking place.
Thanks again for the concern.
Hi jlong4 Most credit card companies have some hardship prog
Hi jlong4
Most credit card companies have some hardship programs. Insist your consultant to talk with them and get the best plan for you. As your present financial condition is good and expect stability in the future, consolidation will be the best fit for you. Keep in mind, creditors will be offering the benefits seeing your intentions to pay the debt and your consolidation company's approach. Don't miss your payments in the plan. If you hurt it, things will get squared back to zero and the interest rates will again go higher. This is not to alert you, perhaps to notify you about keeping yourself well prepared for the program.
Thanks for the replies and kind words. This has been a really g
Thanks for the replies and kind words. This has been a really gut-wrenching experience and time...literally all I think about from the minute I get up until I go to bed deals with this.
I am really hoping that a consoldation program will work for this...I don't want to do a settlement or bk. I will keep pushing and if anyone has any other thoughts or ideas, please feel free to reply.
Thanks again.
Does anyone know a debt consolidation agency that might be good
Does anyone know a debt consolidation agency that might be good for someone from Indiana and for someone that has such a large amount of debt to work with? I have been contacted by Superior Debt, initially, but cannot communicate with them well right now because I am out of town on business. I REALLY want to try to go the consolidation route with this and it looks like Superior doesn't offer those services...at least from what I can see.
I have looked at the ones listed thru the ranking chart and I guess I am just wondering if anyone has had good luck with any of the ones thru Indiana? Or, does anyone know if T&C work with clients from Indiana?
I really feel if I can get with a good consolidation agency, that can significantly lower interest and finance charges (or even eliminate) then I can take care of this through this route...I know it might take longer than most, but I am comitted to doing this.
Thanks for any suggestions.