Debt Settlement Right for me?
Date: Wed, 04/29/2009 - 08:45
Married.
Credit scores currently
Mine:630
Wife:640
Income: $47500 combined yearly.
Debts:
Monthly Payment Payoff
Circuit City Card $65.00 $1,830.00
GE Money Bank $120.00 $3,703.00
1FBUSA Credit Card $115.00 $4,836.00
State Farm Credit Card $115.00 $5,764.00
HSBC Credit Card $15.00 $270.00
CITI $145.00 $4,900.00
Lowes $20.00 $1,389.00
Orchards $15.00 $470.00
Total $610 $23162
After we pay all debts and house payment, we have only $200 remaining each month. We have definitely learned our lessons on debt and will never let it happen again. We have been carry this debt for about 5 years and it has not even budged. I cut up the cards a long time ago. We are not really concerned with our credit score, we would like to not have to use credit in the future. I am concerned with facing a lawsuit or wage garnishment.
If you can afford your minimum payments I would suggest you cons
If you can afford your minimum payments I would suggest you consider looking into a DMP with a non-profit consumer credit counseling agency. It will get you one payment but at much lower interest rates " usually around 6%-10%". Most importantly it won't affect your FICO score. I would only suggest debt settlement if you are overextended and can't afford your minimums because it will have a major impact on your credit score and you do run the risk of lawsuits and wage garnishments , depending on what state you live in.
What amount of balances usually provoke a lawsuit. I have a coup
What amount of balances usually provoke a lawsuit. I have a couple around 5K and some in the 1.5K range. Are there certain debt amounts that are prone to lawsuit?
There are a ton of factors creditors look at to determine if the
There are a ton of factors creditors look at to determine if they want to sue you. How much you owe , who you owe , what state you live in , how long you have had the account , your payment history with that creditor , your budget , your assets ect.... As far a a creditor suing you over the size of the balance depends on the creditor. I have seen Discover will sue people for less than 1k.