Credit Counseling or Debt Settlement...long post...
Have you considered bankruptcy? I know that its scary sometimes
Have you considered bankruptcy? I know that its scary sometimes to think about it but its happens alot more than you think...the only reason i suggested it is because you stated that you dont want to give the cc companies any more money. Howver, if you want to do a program like the one you talked about you should know that your credit score will be affected. I tried a debt management company before i decided to file my bk and it never got any higher because unexpected expenses came up and i fell behind on those payments and the cc kept reporting me deliquent on my credit report. My attorney explained to me that when you file a chapter 7 bk, you can immediatley begin to rebuild your credit and qualify for a home loan after 2 years of your debts being discharged as long as you maintain good credit(which would be easy if you own a home now, because you can reaffirm your mortgage and keep making payments to keep your home and rebuikd your credit) again, i am not advising you one way or the other, but i just want to share my personal expriences with debt management/settlement vs. bk because like you, i looked over my payments and realized that i had paid these people back what i spent and them some. However, it will be up to u and your wife as to what you feel is best for you and your family.. good luck.
For $26,000, you should consider debt consolidation, not bankrup
For $26,000, you should consider debt consolidation, not bankruptcy.
Going through DC, your credit score and report will take a hit in the short-term (perhaps several months) unlike bankruptcy, which stays on your report for 7 years.
any deliquencies or late payments reported on your credir report
any deliquencies or late payments reported on your credir report stay there for 7 years too
So if I go with a CCCS I'll have about 2 or 3 months of late pay
So if I go with a CCCS I'll have about 2 or 3 months of late payments on my credit report but if I go the DS route I'd have upwards of 18-24 months worth of late payments?
why can't you go into some programs with the cc companies citi a
why can't you go into some programs with the cc companies citi actually has one right now that is 0% interest x60 months and after 3rd pymt they go back to your original balance.If you can settle on your own(before it is charged off) or go into a program and I think that is best.I think it is a waste of money paying these debt mgmt programs.
That's one of my primary questions; how long do I have before th
That's one of my primary questions; how long do I have before they're "charged off"? If I have 8 cards and I start with the lowest balance first I wouldn't be able to pay the last one for about 12 months (roughly?) - what do I tell them during this time, how do I keep them from charging it off and most importantly how do I keep from getting sued?
To clarify - I wouldn't necessarily start with the lowest balanc
To clarify - I wouldn't necessarily start with the lowest balance first but rather who's going to work with me first but either way I wouldn't get to the end of the line for 12-18 months?
Thanks.
my two cents. First, I think to declare BK for only $23K is a
my two cents.
First, I think to declare BK for only $23K is a little extreme. You also may not qualify for BK 7 which would probably mean a 100% payback with BK 13. I assume you have a steady income if you can manage to come up with $500-$800 a month. Wait until the court tells you what you can afford. You won't like it. Not worth it.
Debt Management does not really hurt your score it just prevents your ability to get credit. While on a DMP, you will not be able to get a loan for anything. Your score will improve as you start to pay down your debts. I will tell you that most people do not complete a DMP. You have to make those payments every month. Period.
In Debt Settlement, most creditors will go to collections around the 180 day mark. That is usually the best time to settle. In the mean time you will continue to accrue late charges, interest charges and over-limit fees. So by the time you are done, your $23K could be $30K or more. Your credit will take a hit, so I think your plans to move in 4 years will be affected.
I would go the Debt Management route IF you are positive you can make the payments for 39 months. I would look into CCCS or another non-profit DM company. Here in Maryland they are not allowed to charge more than $30 a month in fees. I would shop around a little more and see what other DMP offers you can get. $40 + $10 is too much to pay.
I agree on the BK - we will NOT be going that route! After some
I agree on the BK - we will NOT be going that route! After some of the replies here and some other reading I've been doing it looks like we're going to go with a CCCS. Other then the $50 the current option isn't bad and I do feel confident in this company because 1) BofA pointed us to them - which indicates they are somewhat legit and 2) even before BofA recommended them I had a co-worker recommend them also.
Any other recommendations for CCCS's?
I went back and looked at your balances. What is your monthly m
I went back and looked at your balances. What is your monthly minimum payment now minus the late fees?
Right around $1000 which wouldn't be bad if everything was caugh
Right around $1000 which wouldn't be bad if everything was caught up but most of the cards are late right now and we're getting hammered with fees - i.e. Both Citi cards are going to be 3 months late in about 2 weeks and EACH will be a minimum payment of $1200 - that's not going to happen. Even if it did we wouldn't have much money left over to live on.
Something I didn't put in the very beginning is my wife lost her PT job a few months ago. She still works full time, as do I, but her PT job brought in about $800 a month. She's been able to get more hours at her full time job but not enough to make up the difference; I'm paid a salary and travel for a living so it would be hard for me to get a PT job. This is why I need to reduce our monthly payments.
Help with Debt
I definitely think declaring bankruptcy is not a good option for you. That will stay on your credit report for 10 years. Your best option would be to find a certified debt settlement company that has attorneys who will suprvise your file. You should be able to reduce your debt up to 60%. Once you have paid the debt off, which can be in as little as 12 months or as much as 40 months, your credit score will begin to go back up. Your debts will be shown as settled. Certified Financial Solutions
Keep doing research. It may be better (and cheaper) to retai
Keep doing research.
It may be better (and cheaper) to retain a lawyer in your area to handle debt settlement. Or try settling on your own.
Google Dept Settlement and check out the MSN money article and zipdebt.