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100K+ in Credit card debt after failed business - HELP!!!

Date: Wed, 09/19/2007 - 10:12

Submitted by anonymous
on Wed, 09/19/2007 - 10:12

Posts: 202330 Credits: [Donate]

Total Replies: 7


2 years ago I left my six-figure salary job to start a new IT business. 2 years later, the business has not worked out but I'm stuck with over $100k in mostly credit cards debt from funds used to attempt to salvage the business over time.

I've now returned to my old job with a better salary but cannot keep up with even the CC interests on all my credit cards (let alone payoff the principal) I also have a $2000 morthgage and a host of other monthly expenses.

I am starting to default on most of these cards now and my credit score already hit the dumps and the creditors have started to call and some have adjusted their rates to over 30%.

After reading up a lot on debt management and debt relief options, I do not want to file bankrupcy, but to instead try debt settlement. Is this the right option for me?

What debt settlement companies are recommended based on past experiences? I am also concerened about using a settlement company that is not reliable as I cannot afford any more mistakes.


Has anyone dealt with credit card debt of this size and what are the reccomendations and experience?

Any other recommendations and guidance will be appreciated.


Hi, and welcome to the forum. I know exactly how you feel. My husband left a pretty good job to start his own business. After trying to stay afloat for 5 years, he gave it up and went back to work for a company. This was after running up terrible credit card debt. I am needing debt settlement also, but need to wait for awhile longer to recover from some other things. Hang in there and things will get better. Someone will be along shortly who can offer advice on debt settlement companies. Just wanted to say you are not alone and welcome to the forum. :-)


lrhall41

Submitted by eleroo on Wed, 09/19/2007 - 11:12

( Posts: 1220 | Credits: )


Hello Ayo and welcome to the forum!

Since you are working and have a steady inco there is no need to worry. We all here are in the same hole, and we are all getting out of it.

Tip: instead of waiting for the call, call them yourself! The number is on the right nahdside of your monitor :D


lrhall41

Submitted by stefan on Wed, 09/19/2007 - 18:43

( Posts: 201 | Credits: )


I'm in the same situation as you are. I'm to the end of my rope now and I'm soon going to be delinquent and will start receiving collection calls. I live in Vermont and I believe it is harder for them to collect here - I have a long term plan and have been counseled here, I will have to do debt settlement to ever recover from this mess or file bankruptcy. However, bankruptcy laws have changed now and most people whos income exceed the medium income (about $68000 for a family of 4) cannot file liquidation bankruptcy (Chapter 7) they must file Chapter 13 wish is a very disciplined repayment plan and can take up to 3 to 5 years to pay back. The hard part is the IRS sets your living expenses and the rest of the money needs to go to the court - only a third of people filing Chapter 13 make it through the program and discharge (read those statistics on line). So the only way I'd consider filing is to stop a legal suit against me, otherwise, I'm going to just sit it out until the credit card companies are ready to settle with me.


lrhall41

Submitted by sherrie45 on Thu, 09/27/2007 - 01:24

( Posts: 22 | Credits: )


I've signed up and talked to a counselor and a debt settlement company. I think debt settlement is right for me, but ... because I've been playing the balance transfer game, they want me to wait 6 months from last activity and to keep struggling with payments - I have over $2,500 a month going out in credit card payments and I don't know how I'll continue because I've been robbing from Peter to pay Paul and I'm maxed on everything now ... I just made four transfers on my 8 cards totaling $135,000.


lrhall41

Submitted by on Fri, 09/28/2007 - 04:20

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