Decided to not sign up with FDR.. what now? few questions
Date: Mon, 04/05/2010 - 22:29
Sorry it so long, I just have a few questions listed below if you dont want to read, any help would be great.
For all of 2009 I had a 10% pay cut at work. At the beginning of 2009 I was already 7k in mostly medical debt but was able to keep up on payments . When I received the pay cut It was supposed to only be temporary, for a few months max so rather than make adequate life changes I transferred that -500$ a month deficit into my various lines of credit.
So here we are, 2010 and I finally have my full paycheck back. I also have 18k in mostly credit card debt at a average of 30% interest across 8 banks. I had been keeping up on my payments but not able to gain any ground. I just got hit with 2k in dental and I need to pay another 800$ to get the work finished. I'm in constant pain and have finally decided to take care of myself before my debt. I'm 25 male and have never been late or missed payments before last month.
I ended up getting sold on FDR and was minutes away from faxing back my contract before having second thoughts. It's nothing bad about the service I just think for me it makes sense to save the money and DIY it, paying more money just sounds like the opposite of what I need to do.
So I have decided to take the step and deal with my debt not just put it off with interest, I just don't know what to do next. Based on advice from FDR I am now 2 months behind on paying all 8 creditors, getting calls nonstop at work and to my (distant) family
1. I was told to just not communicate for the first 3-6 months, ignore calls and letters, does that sound right? Or do I need to be talking to them and letting them know I can no longer afford to pay and that I will contact them as soon as I'm in a position to pay?
2. I would like the work calls and calls to family to stop, the person line is fine. Is there anything I can do now before my accounts make their way to the debt collectors to stop those calls before they begin? Or deal with them once they start.
3. Since I will be trying to put away close to 1k a month that means within a few months I would be able to cut off some of the smaller cards, should I do that? or is it better to wait the 3-6 months and let everything default before paying anyone?
Sorry again for the long post, I'm just not sure what direction to go in and actually having a hard time finding reading material that doesn't feel biased towards a debt company.
For all of 2009 I had a 10% pay cut at work. At the beginning of 2009 I was already 7k in mostly medical debt but was able to keep up on payments . When I received the pay cut It was supposed to only be temporary, for a few months max so rather than make adequate life changes I transferred that -500$ a month deficit into my various lines of credit.
So here we are, 2010 and I finally have my full paycheck back. I also have 18k in mostly credit card debt at a average of 30% interest across 8 banks. I had been keeping up on my payments but not able to gain any ground. I just got hit with 2k in dental and I need to pay another 800$ to get the work finished. I'm in constant pain and have finally decided to take care of myself before my debt. I'm 25 male and have never been late or missed payments before last month.
I ended up getting sold on FDR and was minutes away from faxing back my contract before having second thoughts. It's nothing bad about the service I just think for me it makes sense to save the money and DIY it, paying more money just sounds like the opposite of what I need to do.
So I have decided to take the step and deal with my debt not just put it off with interest, I just don't know what to do next. Based on advice from FDR I am now 2 months behind on paying all 8 creditors, getting calls nonstop at work and to my (distant) family
1. I was told to just not communicate for the first 3-6 months, ignore calls and letters, does that sound right? Or do I need to be talking to them and letting them know I can no longer afford to pay and that I will contact them as soon as I'm in a position to pay?
2. I would like the work calls and calls to family to stop, the person line is fine. Is there anything I can do now before my accounts make their way to the debt collectors to stop those calls before they begin? Or deal with them once they start.
3. Since I will be trying to put away close to 1k a month that means within a few months I would be able to cut off some of the smaller cards, should I do that? or is it better to wait the 3-6 months and let everything default before paying anyone?
Sorry again for the long post, I'm just not sure what direction to go in and actually having a hard time finding reading material that doesn't feel biased towards a debt company.
I think that staying in touch with your creditors would put them
I think that staying in touch with your creditors would put them at bay from filing lawsuit against you. The creditors might stop calling you non-stop as well as your relatives, if you stay in touch with them. You might not have to attain each and every calls from them, once in a month should be fine.
If you can payoff some of your debts, you may do that. Remember, that defaulting on your accounts would have a negative effect on your report. Also, not necessarily you have to deal with all your creditors at one time. You can prioritize your debts and pay them off accordingly.
