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Debtconsolidationcare.com - the USA consumer forum

How do you have money for debt settlements?

Date: Fri, 12/18/2009 - 13:22

Submitted by Jill Adams
on Fri, 12/18/2009 - 13:22

Posts: 96 Credits: [Donate]

Total Replies: 6


How are most people coming up with money for debt settlements? I can't pay my cc payments because the money has to go to my essential bills then I don't have any money left after that.

So for you that are doing settlements, do you have savings or borrowing or how? Just want to get some ideas because I would really like to try to do settlement.

Also, do the creditors typically want the payment in one lump sum?

Thanks!


I've saved my funds by stopping payments to the debt management program I was in. Also, I stopped all pay day loans. I was able to come up with enough money to pay HSBC and Bank of America in installments. Next month I am eligible for a pension loan so I will be paying off Citibank once they give me a good enough offer.

I don't buy anything unless I absolutely need it. I clip coupons and buy food on sale. I use my car only when necessary. I cut way back on christmas this year. I work a full time and a part time job.

I know some people on this site have borrowed from friends, relatives, etc. The only alternative to settlement may be bankruptcy which wasn't an option for me.


lrhall41

Submitted by aubrey on Fri, 12/18/2009 - 13:27

( Posts: 1203 | Credits: )


In order for settlement to work, you must be able to save money for them. if there is no way of doing that your only option is bk. you could follow aubreys advice this helped me greatly. to add to her list:

1. sell sell sell what you dont need or use anymore or things you could do without
2. find ways to cut cost like aubrey by coupons, buy generic, i found reciepes to make my own cleaning supplies
3. youd be suprised as to what people think are necessities, make 1 trip to the store stick to the absolute basics on your list, be sure to make a list and make it known that if you dont get it you have to commit to wait till next week, buy food like large turkeys, hams, and such and make many meals out of it i have a family of 3 and will spend the money on a 20 1lb ham vs buying ham steaks or such that big ham will make us many meals

one suggestion spend the money on a cheapo vacuum sealer i think you can get the kit for less than 10.00 and some bags and freeze and save and dont buy until you use it all. its cheaper to buy in bulk.

for more tips i think we have a great section on this site of things we have all done to save for settlement!


lrhall41

Submitted by love_my_things on Mon, 12/21/2009 - 06:54

( Posts: 1434 | Credits: )


Jill,

I had 5 debts, and to date all have been satisfied:

Card 1: I hired an attorney and she negotiated a settlement with one Bank's legal
representatives that I make manageable monthly payments until the debt is
satisfied

Card 2, 3, 4: I was part of a receivership and these three credit card accounts were
settled by the receivership as part of a settlement agreement/lawsuit between
between the receivership and the bank

Card #5: I phoned the collection attorneys and settled the $16K debt for $4800.

In each case, as the debt is resolved, I am careful to received a letter which states that the account in question will no longer reflect on my credit report as "charged off." I have a fax sent to me, and pressure the card companies to send a HARD COPY (with signature) as well.


lrhall41

Submitted by on Mon, 12/28/2009 - 20:39

( Posts: | Credits: )


Have an offer from Citibank. They will call me after 1st of year to set up installment payments (3). I will be taking pension loan to settle. I wiped out my 401k with my part time job to settle with Bank of America. Discover put me on installment plan with low interest rate for remainder of year. Other than my jobs, my money sources are wiped out, BUT I don't have to dodge the phone and I can sleep at night again. AND I will have freed up $1,000 a month of my paychecks to start saving for retirement!

I am so glad I found this website. Thank you all.

PDLs out of my life; credit cards settled - PRICELESS!!:D


lrhall41

Submitted by aubrey on Tue, 12/29/2009 - 06:09

( Posts: 1203 | Credits: )


They gave me 35% or $4,248 on a $12,000 balance. I will pay $334 to "hold" the settlement (as I'm past 120 days) on 1/5; then $1974 on 2/5 and 3/5. That's the last one to settle..... the others are small and I can pay them. Discover I have lower interest rate and $79 a month for 2010.


lrhall41

Submitted by aubrey on Tue, 12/29/2009 - 10:20

( Posts: 1203 | Credits: )