First Post - Need Help
Date: Wed, 09/24/2008 - 23:28
I have roughly $23,560 in unsecured debt that I would like to get rid of. Up until now, I have been able to keep up with the payments, but starting in October, I will not be able to keep with up them.
Here are my debts:
Personal Loan with Capital One - $11,299 ($557.00 a month)
Credit Card with HSBC - $9,980 ($208.00 a month)
Credit Card with WAMU - $2,301 ($84.00 a month)
I still have 24 months with the personal loan with Capital One, but making the minimum payments with the 2 credit card companies will take forever to payoff.
I already have a chapter 7 on my credit report from my first wife who ran up a lot of debt and was forced into it when we divorced 7 years ago.
I got into contact with my local cccs and they said since I am $640.00 over on what I make vs. bills, rent, car payment, ect... My best road to take is Bankruptcy. I would really hate to go down that road again. I am going to try to reduce my rent because where I live, it is income based and when we moved in last September, my wife and I only had 1 child. We now have 2 and I make the same, so hopefully I can get my rent reduced.
Other reductions include cable/internet/phone.
Can anyone offer any words of wisdom or advice on how to tackle this sort of situation?
With my monthly payments of $869.00 going to creditors each month, what do you think a debt consolidation or debt settlement Firm can get my monthly payments down to?
I am going to write my local cccs again and ask them if I can bring down that $640 a month, if they are willing to work something out with me.
Thanks.
Welcome to the Community :D Here is a link that explains some w
Welcome to the Community :D Here is a link that explains some ways to solve your debt problem at http://www.debtconsolidationcare.com/debt-solution.html
You can also ask your creditors if they will put you on a hardship program, where they will drop or lower the interest until you get caught up. Some companies do require you to be several months behind before they will do it.
You can consider what option may be best for you. You are also entitiled to a free credit consultation since you joined, where they may suggest other options.
Be sure and do your homework on whatever solution you choose, check out companies, use the search feature, etc. Feel free to ask questions..Let us know what happens..karen
I can tell you from my personal experience that HSBC didn't offe
I can tell you from my personal experience that HSBC didn't offer us a hardship program until we were about two or three months behind in our payments, and Wamu never did offer us one, even though I asked. They said we didn't qualify. That doesn't necessarily mean that you wouldn't qualify though since they have criteria that they look at for each individual account.
I believe that if you file Chapter 7 sooner than eight years from your previous filing date, then you won't be eligible for a discharge. However, I think Chapter 13 would be an option for you since it's been over 4 years from your Chapter 7. I do understand your desire to avoid that though. I also had two different CCCSs tell me that we didn't qualify because we didn't have enough income to pay our bills. In our case, we did end up having to file Chapter 7.
If you don't qualify for CCCS and you don't want to do BK, the other option is probably debt settlement. You can do a search in the search box for your specific creditors and read other people's experiences with them. You can also read the do-it-yourself section on this site for some ideas. Keep in mind though that debt settlement will have a negative impact on your credit score.
Good luck, and keep us posted! And, as Bossy said, feel free to ask more questions!
As Karen mentioned ~ one of the most important things you can do
As Karen mentioned ~ one of the most important things you can do ~ is educate yourself. It's going to take time and effort but it's going to worth all of your work. Knowing what you're doing and how you're going to do it is half the battle! Keep reading the posts and of course ask questions...there are lots of people here who are in your same position or have been successful in getting themselves out of it. If anything ~ it's nice having the support of those who really do know how you feel.
First of all ~ congratulations on not getting in to the PDL hole. Those loans look attracting when times of desperation come up...and then the honeymoon is over when those interest rates kick in. Before you know it ~ you're worse off than you ever were. So make sure to stay away no matter what!!
If I can offer you advice ~ I would say to get real about your finances. Make a list ~ What are your bills every month and when are they due. What is your income every month and when are you paid. This way you can determine which bills will be paid when. I would recommend having the money ready for each item one week before it's due...so you can be sure you have the money to make a prompt payment. If you find that you have several bills due at the same time but not enough income to pay on time...it may be an option for the company to change your due dates. It never hurts to give them a call & ask.
It's a great idea to take a look at things that you may be able to cut out of your budget...like high speed internet, etc. These are always things that are "nice" to have and we all want them...but if it'll give you room for other urgent things...I say toss it for the short term. Some cable companies offer packages with all three bundled into one...maybe it's time to take a look at a different vendor if you have that option. Cellphone plans...can they be changed? Utility companies also can have programs for those having trouble paying...so see what they might have to offer. I hope your landlord will be able to assist you as well in lowering your rent.
Another thing ~ for your credit card debt ~ is it possible to do balance transfers to another card so you can have one payment? A different card may have a better interest rate and some companies may have different programs that will work with your situation.
The last thing I will say ~ Adding more debt in the form of a loan, etc. will not help you. Do everything you can...cut out things that you can...so that you can make this work on your own without borrowing. Keep in contact with the people you do business with (I hate the word "creditor")...being upfront and honest with your situation will only benefit you. They aren't going away so hiding in a hole isn't an options. Keep trying and don't give up. Good luck to you :)
