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Starting out and need help

Date: Fri, 02/19/2010 - 14:04

Submitted by Todd Tourin
on Fri, 02/19/2010 - 14:04

Posts: 8 Credits: [Donate]

Total Replies: 9


I am just starting out with this. I have 90k in cc debt. 6 cards. I have just contacted my creditors to open the door of communication. They each offered me a reduced rate of 6% for 12 months. My questions are: 1. Should I accept these offers, then default 120-150 days and then negotiate settlement? That way I am saving interest that is accrueing on the defaulted loans while I save up. 2. After 120-150 I expect to have some settlement offers. What if they all come in at the same time? I won't have enough saved by then to settle with them all. What then? 3. Should I go with a law firm that has offered me 10% on the amount saved? I understand that the $$ I am giving them could be better used to settle other cards sooner. But, they need to get paid too for their services. Also, they are telling me that they can get 40-60% settlements. They can't guaranty lower, but could get 25-30%. I told them I could get 25-30% on my own after reading many testimonies on this site. They said that is not realistic. ????


Hello Todd,
your creditors will always offer you whatever it takes to keep you making your monthly payments, this is what they want. people really need to evaluate what these little 12 month plans creditors are offering you. mostly its ALL interest and the plan means nothing for YOU.
youd almost be better off not paying them at all.
people need to realize that the creditors are NOT on your side, they want you to fail so they can make the most money from you in interest like i already stated.
if you do not want to file BK maybe debt settlement is the what you should look into, if you want to file bk and you still are going to have to pay your debts back: whats the point of filing BK ?
REMEMBER, this is YOUR life and you only have one life, LIVE YOUR LIFE! AND NOT THEIRS!


lrhall41

Submitted by on Fri, 02/19/2010 - 22:17

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Quote:

Originally Posted by Todd Tourin
I do not want to file bankrupcy. My cards are chase, citi, amex, discover, and cap one. What do I do when I start to get offers on all of them at once? I will only be able to pay one at a time while I save for each settlement.

todd,
you have a unique line of credit cards,
if you go deliquent on all your cards at once you will get slammed with deals.
i need to know the balances of each credit card and also the creditor to help, sounds like youve got a not so average line up. you need to line up your balances to figure out a plan like ive said.


lrhall41

Submitted by on Sun, 02/21/2010 - 00:05

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Todd, realistically, how much are you planning on saving up per month so you can make offers to your creditors? Are you getting any tax refund or do you have any other sources of money other than your regular job that will/is available? Although it's best to usually settle the debts prior to 'charge off' - it may not be in the cards for you so you should lay out a couple of plans just in case...


lrhall41

Submitted by nole on Mon, 02/22/2010 - 16:57

( Posts: 58 | Credits: )


well you have 90k in debt - 1,500 per month - would put you at about 30 months to realistically save the money to settle. That's at .50 ctd. If you were planning on a strategy to take a temp. hardship you would also have to take into consideration those monthly payments as part of your budget/spending plan. Once you dump the plan, you would be back to square one - they would take that money and retroactively apply it towards the original balance with interest, etc. Ideally, if this is your strategy, I would contact the bank and see if they will do 0% interest over 5 years - nothing wrong with telling a creditor that another creditor made this offer and it's the only way that you can realistically get out of the jam you are in - see if they will agree to the same. At least now you would be paying down the principal - and saving more money per month - then when you can hit at least .50ctd in savings - make the offers then, starting at .20 ctd. The other option, since you have 90k in debt - would really be to explore a chpt 7 bk - see if you qualify. It may be better to start out fresh and invest that $1,500 towards your future instead.


lrhall41

Submitted by nole on Wed, 02/24/2010 - 05:30

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yes todd you have 86k in debt with an honest debt settlement company youd be paying into a trust of with a monthly payment of around 1290.00 this usually gets people out of debt in around 36 months, given if you come up with extra funds to settle when the good deals come around you can get out of debt quicker.

just trying to paint a picture in an example

if youre looking for a reputable company, do not go with a company that charges all the fees upfront with a certain time, these companies are the rip off artists.


lrhall41

Submitted by on Wed, 02/24/2010 - 14:10

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