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Deseperate and scared

Date: Sat, 02/13/2010 - 13:33

Submitted by sototallybroke
on Sat, 02/13/2010 - 13:33

Posts: 15 Credits: [Donate]

Total Replies: 15


Hi all. I have been lurking here for several months and finally registered today. I am a small business owner and have been funding my business with credit cards for 5 years. I know it's stupid, but the banks wouldn't help me. My business has been growing each year, but so have the expenses, so it seems I am always spending more than I bring in. With the last years nightmare recession, we are strapped. My debts are not frivolous. I am paying payrolls and rent and utilities. I have canceled all my personal services to try and save money. I have no phone, no tv (not even networks), my cars are over 10 years old, I haven't bought new clothes in years and never go out to eat. I have eliminated EVERYTHING extra including my families healthcare. I don't know what else to do. We are only paying minimums on our cards and now it is a matter of cards or rent. I am terrified of destroying to little credit score I still have and am not sure what to do. I have read for months on here and debt settlement sounds appealing. But with old cars and not owning my own home anymore I have ZERO secured debt. I am afraid this means I will NEVER get my credit score back up if I totally tank it. Currently I have over $60,000 in debt to 5 credit cards and over $150,000 to family so I sure as hell can't ask them for help.

I have negotiated hardship plans with three cards, but I can't even pay those payments now. Can anyone tell me what you recommend? I have nothing of value to sell and am so totally screwed until the dang economy allows my business to pick back up.

Edited to add: And apparently I can't spell. Sorry about the typo in the thread title.


good luck to you..like the other poster said you need to pay your four walls first--home-electricity-food-water--those bills come first!! Dont worry about your credit that will come back up when you get back on your feet. Maybe you could get a part time job or something until business picks up.


lrhall41

Submitted by on Sat, 02/13/2010 - 18:49

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Well I have until Tuesday to decide if this is the right move for us. My biggest payment is due Tues and I have turned off the auto pay. I am having a really hard time with this. I keep thinking I should just pay the bill. But then I realize I don't have enough money. If I pay the B of A bill I can't pay for my natural gas bill which is 2 months late already. This is just so frustrating. I don't want to thrash my credit rating. But I don't know what else to do. I just keep waffling back and forth. Then I keep hoping business will pick up again, but everyday is bleaker and bleaker. Sure could use some answers.

How bad will a credit score get damaged? How do you repair it later? Does it hurt your rating more to settle on more then one card or is it better to have some that are not defaulted on?


lrhall41

Submitted by sototallybroke on Sat, 02/20/2010 - 19:28

( Posts: 15 | Credits: )


This sounds frustrateing but the last thing you should be doing is being scared, I understand that your credit rateing is important and you want that to stay to at least the bare minimum, im not sure if i am able/allowed to promote our services but we offer a solution that may be able to help you. We have been in business for over 30 years and provide debt support and asset protection for 1000s of small businesses and families. We are able to..

1: Allow you to stop paying your debts (even the minimum)
2: Stop creditor calls and letters (they get directed to our call centers, and we take care of each personally)
3: Provide complete asset protection against your home and assets
4: Stop creditors being able to sue you, or file judgement
5: Restore your credit by at least 60-120 points (yes even if your not paying your debts)


lrhall41

Submitted by StopPayingDebt on Sat, 02/20/2010 - 19:42

( Posts: 10 | Credits: )


Quote:

Originally Posted by sototallybroke
Well I have until Tuesday to decide if this is the right move for us. My biggest payment is due Tues and I have turned off the auto pay. I am having a really hard time with this. I keep thinking I should just pay the bill. But then I realize I don't have enough money. If I pay the B of A bill I can't pay for my natural gas bill which is 2 months late already. This is just so frustrating. I don't want to thrash my credit rating. But I don't know what else to do. I just keep waffling back and forth. Then I keep hoping business will pick up again, but everyday is bleaker and bleaker. Sure could use some answers.

How bad will a credit score get damaged? How do you repair it later? Does it hurt your rating more to settle on more then one card or is it better to have some that are not defaulted on?


Bank of America is one of the easiest to settle with. You need to stop paying if you can't and also stop worring about credit score. There are more important things in life than you score.


lrhall41

Submitted by OZZIE69 on Sat, 02/20/2010 - 19:49

( Posts: 555 | Credits: )


Quote:

Originally Posted by sototallybroke
Well I have until Tuesday to decide if this is the right move for us. My biggest payment is due Tues and I have turned off the auto pay. I am having a really hard time with this. I keep thinking I should just pay the bill. But then I realize I don't have enough money. If I pay the B of A bill I can't pay for my natural gas bill which is 2 months late already. This is just so frustrating. I don't want to thrash my credit rating. But I don't know what else to do. I just keep waffling back and forth. Then I keep hoping business will pick up again, but everyday is bleaker and bleaker. Sure could use some answers.

How bad will a credit score get damaged? How do you repair it later? Does it hurt your rating more to settle on more then one card or is it better to have some that are not defaulted on?


Hi Broke,

This is the way I did it. 52 years and never a late payment. I could see clearly enough into the future to realize I would soon miss payments, no Christmas, etc...anything was better than the way I felt.

So, I took everything off billpay and just didn't pay them. I got calls, of course, but they were generally friendly and nobody gave me a bad time. After 75 days, AMEX gave me 35% on $14k. Then a week later BOA offered me $13k on $41k debt. Then Chase offered me 50%... leaving me with only 2....yes 2 to deal with.

Your credit score will suffer....no doubt. But really the lower credit score actually HELPS you because you will learn quickly to live within your means. I can tell from your writing that you are well-educated so you will be able to settle your debt without paying ANYBODY who is in it for a profit.

Only you know if you can pay off your debts. I could not, and if that is the case with you, you will immediately feel better when you take the first step. Good luck and check on back here.


lrhall41

Submitted by dantheman on Sat, 02/20/2010 - 19:56

( Posts: 860 | Credits: )


Quote:

Originally Posted by danothemano
Hi Broke,

Your credit score will suffer....no doubt. But really the lower credit score actually HELPS you because you will learn quickly to live within your means. I can tell from your writing that you are well-educated so you will be able to settle your debt without paying ANYBODY who is in it for a profit.


We have already made all the adjustments to our lifestyle and have been living on cash for almost a year, minus a desperation charge to cover our house payment last month, which we wouldn't have had to do if there weren't so many cc payments. I just have to get over it I guess. I am worried that a low credit score will hurt my business opportunities. I am not worried about not having credit cards anymore (I think they are the root of all evil). I simply don't want to lose more money in the future from loss of business opportunities.


lrhall41

Submitted by sototallybroke on Sat, 02/20/2010 - 20:09

( Posts: 15 | Credits: )


I am with dano..you can do this and once you make that first step and quit paying..wow you will feel so much better. It sounds weird. We have never been late. Never bounced a check. We too are small business owners. I could go on forever about how we got into this mess, and it is NOT from a lavish lifestyle. But we have chose to take control and not live our lives by a stupid credit score. Keep posting. READ everything on this board..I mean everything. You will feel so empowered AND you can do this by yourself. Don't pay anyone to do it for you. Why not try it on your own first. We are here to help each other and we will all get through this! Hang in there and it will get better. :>


lrhall41

Submitted by luckin10 on Sat, 02/20/2010 - 22:43

( Posts: 181 | Credits: )


hi i was the one that commented on paying your rent and utilities and taking care of your family first before you worry about your credit score. i do know how important your credit score is to you, its your adult report card, and how you want to pay back the people and companies you borrowed from, i know how hard it is to make those important decisions, i would still not pay the credit cards if i was in your place, by the way i have a very very high fico and would still do that if in your place, i would definetly continue to read this sight and get ideas think about each idea and what is best for you and your family and your morals with these ideas, some of them i dont know, but to each there own i guess good luck


lrhall41

Submitted by on Sun, 02/21/2010 - 08:38

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I think we are all so focus so much on that stupid credit score we lose sight of what is really important in life. Until my illness my fico score was 789. I worn it like a badge! So proud! Then bam I could no longer work and even wonder if I would survive my illness.
My fico score became the least of my worries! I still need some time to pass before I can settle but looking forward to the day!


lrhall41

Submitted by on Sun, 02/21/2010 - 15:49

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Quote:

Originally Posted by Anonymous
I think we are all so focus so much on that stupid credit score we lose sight of what is really important in life. Until my illness my fico score was 789. I worn it like a badge! So proud! Then bam I could no longer work and even wonder if I would survive my illness.
My fico score became the least of my worries! I still need some time to pass before I can settle but looking forward to the day!


Agreed.


lrhall41

Submitted by dantheman on Sun, 02/21/2010 - 20:29

( Posts: 860 | Credits: )


Quote:

Originally Posted by sototallybroke
I keep thinking I should just pay the bill. But then I realize I don't have enough money. If I pay the B of A bill I can't pay for my natural gas bill which is 2 months late already. This is just so frustrating. I don't want to thrash my credit rating. But I don't know what else to do.


My favorite saying- see if this brings some clarity:

"The absence of alternatives clears the mind marvelously." Henry Kissinger

You'll be so much better off when you realize you've reached the point where YOU NO LONGER HAVE A CHOICE. Honestly, in this situation not having a choice makes it far more easier. Like many here have said it is the wierdest thing how once you decide to go the settlement route you suddenly feel optomistic and empowered again. All the things you feared no longer have the same impact. All the threats are rendered meaningless.


lrhall41

Submitted by on Mon, 02/22/2010 - 10:11

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