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My unemployment benefits will end soon

Date: Sun, 10/26/2008 - 07:10

Submitted by vista.lee
on Sun, 10/26/2008 - 07:10

Posts: 43 Credits: [Donate]

Total Replies: 15


Hi everyone
I got near 10K credit card debts from both Citi and Discover. My unemployment benefits will end by Dec. this year. I'm also going to school Jan. 5th. My fed. student loan has been approved for $12500. I think I have a much better excuse not to pay the debts. I'm unemployed and my unemployment benefits will end by the end of this year. Moreover, I need to go to school. I want to do it myself this time.

How easy to negotiate with Discover by myself?

How do I avoid the tax? When do we pay the tax on the forgiven debts? Is it after the program is ended? The discussion is here:
http://www.debtconsolidationcare.com/settlement/balance-claim.html

Could anyone give me some instruction on how to do it myself? Is it very difficult? Could you share some of your experience? Thank you so much!


I got no income how can I pay the debts?

I don't have any property for them to go after anyway. While I will be in school, I won't have any job for at least 15 months from now. Can't take money from my work.

I will save up about 40 -50% by my employment benefits to pay them a lump sum after 3 months. Do you guys think they will accept it?


lrhall41

Submitted by vista.lee on Sun, 10/26/2008 - 08:07

( Posts: 43 | Credits: )


You are a prime target for Discover to seek a judgement from. If they obtain one, then they are banking on it accruing interest for several years. This will come back to haunt you years down the road when you do have something they can take from you. As Soaplady said, you need to be out there working.


lrhall41

Submitted by NASCAR_Devil on Sun, 10/26/2008 - 08:56

( Posts: 4671 | Credits: )


All I am say is that you are probably capable of working since you qualified for unemployment. You really think you are going to be able to afford settlements on your financial aid? Probably not. Plus they will not settle until your debt is charged off, so I hope you wont be wanting private loans for school cause defaulting on your credit cards is going to tank your scores.


lrhall41

Submitted by SOAPLADY on Sun, 10/26/2008 - 09:04

( Posts: 17315 | Credits: )


As other threads mentioned, Discover is the fastest to send the bad debts to collection. The collection may do something but not Discover. After 6 months, the account will be charged off. No more interest. Please I'm in a serious hardship right now. I won't tell them any detail. I will just tell them that I'm willing to work something out but I don't have the money. I just want a settlement BUT payment plan that last forever.


lrhall41

Submitted by vista.lee on Sun, 10/26/2008 - 09:07

( Posts: 43 | Credits: )


what if I can I can ask my parents to borrow me a few thousands. Please tell me how to talk to Discover. I know that they usually send the debts to collection after 3 months. Some say its even harder to talk to those collectors. So its better to work something out with Discover before they send them. Is it correct?


lrhall41

Submitted by vista.lee on Sun, 10/26/2008 - 09:19

( Posts: 43 | Credits: )


If you do decide to go the settlement route, then know a few things: a) Your credit will take a hit b) And it takes a hit because in order to settle you need to be delinquent or behind on your payments by months. If you do borrow from your parents, then be sure you have at least 50% of your total debt before even negotiating; there is no such thing as monthly payments. With all that said, settlement is a serious route and you have to know there is a strong possibility that you could get sued. All creditors will pretty much settle, but sometimes there's no rhyme or reason why some people get pursued and others don't.


lrhall41

Submitted by on Sun, 10/26/2008 - 13:36

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From what I've read, most creditors will not settle with you until you are at LEAST 90 days past due, so I don't see any way that you could settle before they send it to outside collections, if, as you say, they do that at 90 days. Basically, you would need to just keep telling them that you want to pay the bill, but your unemployment is running out and you have been unable to find another job. After several months, they may offer a settlement, or you may be able to offer them a settlement, or as others have said, they may be unwilling to settle, and they may decide to sue you. Or they may wait and not sue you until the statute of limitations is nearing. I agree that it's hard to predict. I've seen many success stories on this board of others who have successfully settled with Chase. My husband and I had three accounts with Chase, and one of the three moved the account to their pre-litigation department at only 90 days past due. Why us, and why only that account. Who knows why? Not me!


lrhall41

Submitted by alias1958 on Sun, 10/26/2008 - 13:49

( Posts: 1230 | Credits: )


Thats pretty much what Im going to do. In stead of getting calls from them, Im going to call them like 2 times week and letting them know that how hard its without a job. I actually have been applying for sh*ts loads of jobs on careerbuilder and craigslist but still no luck. Im serious. I have proof of my unemployment running out. I can fax it to Discover. I have also been buying very cheap lunch and dinner. Its like less than $2 from those Chinese Dim Sum place. I have discount on my phones bills, PG&E bill, Water bills. I get discount on those because Im poor enough. If they do sue me, what is the worst situation? I still won't have money to pay anyways.

Besides those, I might need to move to south alabama because I can't even live in average cost city anymore. south alabama is the place to go for poors.

I know my credit score will take a hit but how soon can I go back up again after I settle it? 1 year, 2 years?


lrhall41

Submitted by vista.lee on Sun, 10/26/2008 - 14:33

( Posts: 43 | Credits: )