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Date: Wed, 01/27/2010 - 11:08

Submitted by anonymous
on Wed, 01/27/2010 - 11:08

Posts: 202330 Credits: [Donate]

Total Replies: 8


I have around 85,000 in cc debt.
3 Chase ($13000) $6500 /$6500 total $26,000
1 Credit Union $23,000
1 Capital One $17,000
2 GE Money (Sams Club and Old Navy) $4500, $4500 total $9000
1 Target Bank $ 9,500

I am struggling to pay all these and I am already on low rate or o% plans with all of them. I have no money saved for negotiations but if I stop paying them now I can save $1200-$1300 a month for them. I have heard that the credit unions don't settle so should I continue to still make that payment on that one and stop the others? I know most will settle because I have had offers made when I was behind before. (just didnt have the money) How long will they wait before they sue me. I can have all the money before two years with tax returns etc. I plan to use DIY. Is this to much debt considering I have no money right now? Please help me I need guidence.


The main problem I think, is that when you make a payment, you place that debt back in "Stat". That means that every month, your prolonging your own suffering by keeping that debt fresh in the credit companies. This helps them tremendously in court and for amounts over several thousand the odds you being sued by a creditor are tenfold. Stopping payments may also allow them to add the interest and penalties you've been working so hard to knock down. Now add on lawyer and court fees and up to 29% interest.
If I were the collector, I'd be just waiting for your non-payment to file suit. Most States have small claims court but your way beyond that. Some States can place heavy garnishments on your wages and even liens on your vehicle or home. If you do own property, look into placing it in Trust, this can protect your assets from lawsuits in most cases.


lrhall41

Submitted by on Wed, 01/27/2010 - 12:31

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I too am in the same boat as you just not as much debt (around 58,000 on 4 cards). Got into this debt trying to start a business in the agriculture industry. Bottom fell out of the cattle industry and here we are. While we are trying to liquidate the business assets we will still have this debt we accumulated for the upkeep.

I would love to settle but don't have the cash right now. Have plenty of equity in my home just can't get to it because of my credit score now. Tried before score tanked but my debt to income was too high. Didn't know what to do.

Am currently 70 days out. Calls continuously. Have talked to them. Set up a payment plan then received no paperwork for such. Called back they had no record of this. Sent out hardship letters saying we were open to any negotiations as long as they were in writing. Have received nothing in paper or email form just phone calls. Half of them no one is there when you answer. Gook luck and hope you can get everything worked out. Just keep trying. Eventually maybe you and I both will get somewhere.


lrhall41

Submitted by on Wed, 01/27/2010 - 14:58

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I would stop paying on all of them and I don't agree with debt free bird. They will drag this out over a long period of time. If you can save that much each month you should be good. If you are unlucky enough to receive a lawsuit, don't worry about it. It will take a few months to go thru the process and you can settle with them before it goes to court.


lrhall41

Submitted by on Wed, 01/27/2010 - 16:14

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Thanks for the info would you recommend taking money out of 401k loan?


lrhall41

Submitted by on Wed, 01/27/2010 - 16:31

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I currently have about 6 payday loans that average out to be about $4200...and every 2 weeks I am paying about $750....what is the best thing for me to do seeing as though I have very bad credit and can no longer afford these fees? They are not willing to help me or work with me either....what is my best solution????


lrhall41

Submitted by on Thu, 01/28/2010 - 10:50

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Quote:

Originally Posted by Anonymous
Can anyone else reply I need more opinions


I just this morning settled with the forth of my five creditors. I did not answer any phone calls for the 3 months since I quit paying, and used the letters available here. Then I would talk to them, tell them what I could do (usually offered 30% of owed) they might counter, and we would finally agree. I only had one that had to have 50% but it is being paid in payments with no additional costs or interest. The others ranged from 28%-40% of balance owed. At the rate you can save, this should work for you. Just don't do anything till you have agreement in writing. They can fax it or mail it. My fifth one, I haven't heard from yet.


lrhall41

Submitted by on Thu, 01/28/2010 - 15:19

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