Getting started/HSBC offer only 60 days
Date: Tue, 04/06/2010 - 13:22
I'll try to be short LOL
We own a small retail shop. (IN Michigan) So you can only imagine my debt........ I currently have aprox 95000,00 in credt card alone & many other bills including the refinance on the house.
I can't do it any longer...... I need sleep...... I have managed to stay current on all but 2 of my credit cards. I am 60 days past on my direct merchants/HSBC & a little over 30 on my National City/PNC
Both of these cards are business cards so I am not sure if it makes any difference. Up to this point I have not been sure of what to do. I actually was ready to sign papers with Freedom debt. The idea of not paying all my 20 cards FREAKS me out I'm sure you all know the feeling.
BUT, Yesterday we rec'd an offer from HSBC that they would take off 30%
I can't do this because I have no money.
My questions are
Do I contact all my cards and let them know of my plans? Or do I just not pay until they contact me?
As far as the offer from HSBC.... I planned to respond to them with a letter. Is there any advice as to what I should say?
Also I thought about paying some of the small cards first But does anyone know if they will negotiate if you are not behind?
Thank you!!!
I don't know how much you owe on your HSBC card but a 30% settle
I don't know how much you owe on your HSBC card but a 30% settlement sounds good to me. However, you can still request them to lower the settlement amount further.
Anyway, I don't think its a good idea to inform your creditors that you're about to default. That might instigate them to increase your interest rate or close your account immediately. Either way it would affect you negatively.
If you're considering settlement, you must prepare yourself to take a blow on your credit score because most of the creditors wouldn't discuss settlement till you're current on your bills and defaulting on accounts would lower your score.
Thank you Yes I realize the hit to my score But my score is so
Thank you Yes I realize the hit to my score But my score is so bad now due to my debt ratio...
This site is fantastic & I will do this. Freedom debt seemed to think(?) that I could be debt free in 40 [EMAIL="mos@1440.00"]mos@1440.00[/EMAIL] ea & for "Only 20 mos" do they take money out for themselves.... So Since they said I need to handle the phone calls I'm gonna try Oh yes & PRAY.... I have had a majority of these cards for over 12 yrs & Never missed even 1 payment. I Have paid them plenty... I am not taking advantage/ripping them off (I am saying this to myself) I find my mind/heart/whatever feeling bad for them... Is there anything normal in that??? I guess I feel like they are my friends & they have helped me so much.... Is this a common feeling?? In the beginning?
Thank You!!
You are not ripping them off, Nad. You wouldn't have missed paym
You are not ripping them off, Nad. You wouldn't have missed payments if everything remained the same for you. You are in a hardship situation where you have to take a decision between paying off your creditors and other priorities. And, yeah, we all feel the same way in the beginning. So, don't feel bad. You can regain your pride as a good customer once you're out of debt.
Quote:Originally Posted by nads BUT, Yesterday we rec'd an offer
Quote:
Originally Posted by nads BUT, Yesterday we rec'd an offer from HSBC that they would take off 30% |
just so we are clear, they are willing to take off 30% (which means you still pay 70%), or settle for 30% (which means that they take off 70%)?
thats a big difference :)
You know at first I thought that I was doing something bad too w
You know at first I thought that I was doing something bad too when I decided I had to settle these cards. But they increased my interest rates to 30% and tripled my payments it got to the point where I could not pay them. If they had not done this I would still be able to pay them. When they first skyrocketed my interest rates and i started having trouble paying I called all of them and asked that they reduce the interest rates so that I could continue paying and they all said NO.
So now one of two things will happen. They will take less or I will file for bankruptcy. They did this to themselves and I don't feel bad at all now. So far I have settled two cards and have two to go. They are getting what they deserve.
[QUOTE=Anonymous;678875]You know at first I thought that I was d
- [QUOTE=Anonymous;678875]You know at first I thought that I was doing something bad too when I decided I had to settle these cards. But they increased my interest rates to 30% and tripled my payments it got to the point where I could not pay them. If they had not done this I would still be able to pay them. When they first skyrocketed my interest rates and i started having trouble paying I called all of them and asked that they reduce the interest rates so that I could continue paying and they all said NO.
So now one of two things will happen. They will take less or I will file for bankruptcy. They did this to themselves and I don't feel bad at all now. So far I have settled two cards and have two to go. They are getting what they deserve.[/QUOTE]
This is a business deal between us and the banks. Sort of a reverse loan process. If the banks didn't want to deal, they wouldn't do it.
Sorry for not making that clear.... I have been cunfused a few t
Sorry for not making that clear.... I have been cunfused a few times on other messages..... They only offered to take 30%off my balance is 10,500.00 It does amaze me that they would think that I have 7000 stashed somewhere. (this early) I was just shocked that they did it at 60 days. & grateful that I had not hit send on that debt program. I seen a message where a man suggested offering them 20% in perhaps 2-6 payments depending on balance... I like that idea. I did send an email to HSBC saying thank you for the offer & apologized for not paying and ignoring them I told them "IF" I had any $ I would consider... But At this time I did not cease payment to save.... I simply do not have it. My PNC/National city is 30 days late 15000.00 balance I also sent them an email today very similar. They have not offered anything
my other cards are current "Today"
First equity 8200.
discover 10,000.
capitol one 7000.
advanta 2170.
(2) citi 1400.
(2) A Exp 7000.
(4) BOA 4300.
(5) chase 22,400.
WOW YUCK Up until last week I had no idea of this amount & I didn't want to know. Avoid... don't open.... put fingers in ears & sing loudly..... No More!! Thank you!!
This site is great!!
We were days away from the 30-day cancel period with a Debt Sett
We were days away from the 30-day cancel period with a Debt Settlement co. Like you we have business cc from Advanta and First Equity in addition o persnal cc debt. Advanta jacked the interest up so high that the % amount every month was more than the minimum payment. NUTS! Last payment to them was 11/09. Advanta was shut down & taken over by the FDIC. I've spoken to several "Senior Account Managers." One was a complete _ss, very arrogant & wanted the balance in full OR a 3.99% 12 month plan. I told him we can't do it. The next week a guy offered to settle for 65%. They sent a "draft" of a lawsuit that they "could" file if we don't commit. Told him we don't have money. The last guy offered 50% when I told him 65% is far out of reach. Their tactics are horrible...I'm holding out for not a cent more than 20% of the non-inflated balance. First Equity has been very quiet. We kept in touch with Chase at least every 2-weeks. After some negotiating (3 calls and different reps who were all nice) I settled for 30% 4 payments over 93 days. Saved almost $11000 on this one. BOA pushed for a lot of financal info. Don't do it--stick to your guns that expenses far outweigh income. Good Luck & I'll post any updates. I take notes from this site before calling--it gives me the insight I need to stay strong and not give in. GOOD LUCK on your journey. Only 1 of 6 down so I'll be visiting frequently.
Great job on the one you got done. Good luck on your others. Is
Great job on the one you got done. Good luck on your others. Isn't wierd thought that B of A does their settlements over 93 days - not 90 days but 93?