Please...... Debt Settlement Experience Wanted
Date: Wed, 04/08/2009 - 10:29
I have been recently considering DIY debt settlement to eliminate my $44K debt with 6 credit card companies. These credit cards are all in my name and are current. See below.
1) Citi Diamond Card = 13K
2) Citi Platinum Card = 9K
3) Chase = 6K
4) Chase = 6K
5) US Bank = 6K
6) Citi Financial Services = 4K (Received for Furniture Purchase)
After running a credit report on myself, I found my FICO to be 655 w/ a Debt to Credit Ratio of 79%.
Below is a quick summary of my monthly bills according Equifax.
Mortgage = 1,530 (little to zero equity)
Installment = 789
Revolving = 624
TOTAL = $2,943
By the time I add property taxes, groceries and utilites, it begins to look something like this.
Property Taxes = 420
Groceries = 600
Utilities = 600
NEW TOTAL = $4,563
Obviously this is a problem considering I bring home $4,000 per month after taxes. I gross $67K per year.
This leaves me with a few questions...
1) How do I accuratly compute my Debt to Income Ratio? Is the income based on gross or net? What about the debt portion? I see all types of formulas on the internet for which all seem different.
2) Given my "Debt to Income Ratio" and "Debt to Credit Ratio", do I seem like a good candidate for debt settlement?
3) I recently accpeted a balance transfer for $10K into my checking account from Citi. Can I use this to negotiate with my other creditors while being current with Citi? What are my chances of being sued by Citi?
4) What sequence should I settle these cards in? Is it better to settle all at once?
5) When settling with Original Creditors vs Collection Agencies, is it better to wait until charge off in order to obtain a lower settlement percentage?
6) My wife's gross salary is 35K. Will my creditors be able to see that she makes this money? If so, will they tell me I make enough with her salary and to pay my credit cards?
7) Given all of the information above, should I proceed with settlement process?
Our situation is really starting to stress us out. I admit our spending mistakes and I want to fix them going forward. That is, live a cash only life style. I'd greatly appreciate detailed answers to each of my questions. Thank you oh so much in advance!
Sincerely,
Joseph
Havent you posted this story before?? Seem to remember an over $
Havent you posted this story before?? Seem to remember an over $900 car payment and a student loan in the mix too.
i too seem to remember a similar story, before i go into a hole
i too seem to remember a similar story, before i go into a hole lot of detail, please let me know if you have posted somewere else. its alot of questions to answer twice!
Found the other thread http://www.debtconsolidationcare.com/set
Found the other thread http://www.debtconsolidationcare.com/settlement/negotiation-techniques.html#476523
Henry/Joseph, this is my opinion. First off return the funds to citibank. Secondly, get rid of that over priced car and the insurance payments that go with it. Buy something used that you can afford. Thirdly, tighten your belt. $600 for 2 people for groceries? I feed a family of 4 for less than $400, some months $300. Brown bag your lunches and start shopping wisely. Ditch the cable/direct tv or downgrade it. Your wifes income has to be included in the mix of income...she eats, she has a place to live and uses the utilities. Tighten your belt for a couple of years and pay it off without tanking your scores. Learn to live, shop and spent wisely.
soaplady, i agree frankly alot of people think these things are
soaplady, i agree frankly alot of people think these things are necessities when they are not. I feed my family of 3 on around 200 a month sometimes i get lucky and its less.
Is you and your wife's money seperated? My husband and i when i worked all our money went into a pot, we paid the bills, and what was left is what we lived on. unload things you dont use anymore, raise deductibles, on home owners and car insurances and shop around for insurance.
If your serious about settlement you will need the facts about it. read up on it and know what can, will, and might happen. How to go about it, and know what for paper work you are going to need to be sure they dont go back on thier word. Know what your getting into. Settlement is far from easy or a quick fix. Its hard and draining, and its not for everyone.
You can settle your own debts without including your wifes, and frankly the collectors cant possibly know what you have got comming in. and if its your debts they cannot come after her.
But be knowledgable before you jump in. its not for everyone. It does work (i know) but be sure you dont have a better option first.
i find it very sad that a family with your income level has even
i find it very sad that a family with your income level has even ran up this debt..its very sad you can't pay it..you do not have financial problems..you have management problems..you clearly do have the means to pay your debt but you don't want to..my advise is to get rid of the car morgage and find a cheaper vehicle..that would give you big hunk of money every month to put on unsecured debt..get rid of the house and find a cheaper one..make your choices wisely..this debt problem is about your priorities-really was it that important to buy all that crap on credit?
You have asked all of these questions before, and I know that ma
You have asked all of these questions before, and I know that many people on this forum answered you in great detail, me being one of them! All of the info/advice is here. If you are too nervous to take the advice of posters on this forum then you should probably start researching a debt settlement company so you can ask them these questions over and over again. I answer questions on this forum with the hopes of helping people, but it does take time so please don't waste mine.