Broke and Determined

Hi Fellow Consumers,

I lost my income in February (06), and for the ensueing months was unable to do more than pay the rent (sometimes I had to borrow it from my son), buy food and my meds (I also lost my medical insurance in Oct. 05).

I was consulting, but unable to get meaningful contracts, and couldn\'t find a job in or out of my field. Prior to losing my income, I paid my eight (8) credit card bills on time - always paying substantially more than the minimum. I also kept paying for the insurance offered by the credit card companies in case of lost of work, illness, etc. But, when I went to collect on them, I was told they didn\'t apply, but I lost consulting income, and not employment income. Yikes!

With no alternative, I stopped paying my credit card bills. Now they are substantially behind, and I\'ve only been back to work - in a job this time, for four weeks. My income is also about $20,000 less than it was previous, and since I get a paycheck every two weeks, rather than a large monthly check of $5000 - $6000 as I once did, I can\'t just pay off everyone and get back to an even balance.

I can put from $700 - $1000 each month towards what is at least $15,000 and maybe more in credit card debt.

I am determined to eliminate the debt, not manage it. I am now a Creative Moneymaker, and that means no new debt, not unplanned spending and Save, Save, Save what I can.

What help is there for me? One of my credit card companies has sold my outstanding balance to a 2ndary creditor - the balance was $8000. They are asking for all of that amount at once, and has so far refused any payment offers. I am hoping to make at least some settlement offers, but unless they are extremely attractive, or come from the creditors that was very small to begin with, there is no way I can offer a lumpsum immediately.

It\'s my hope that I can get a settlement - preferably from Mr. PayNow, for $3000 to be paid by January 10th - my birthday. If they won\'t accept that, we\'ll end up in court. I would be embarrassed if it comes to that, but I have no alternative.

Got any advice?

Thanks. Need to vent.

Norma - Broke, but Determined!