Over 70k in debt! (parents)
Date: Tue, 06/01/2010 - 19:07
So I spent some time researching debt consolidation/settlements. Most articles, posts, etc., recommended NOT using a debt consolidation company. There were a lot of success stories (even on this forum!) and truthfully, after a lot of research, I kinda felt that it might be possible for me to settle with the credit card companies! But when I talked to my father about it, he refused, saying I was ridiculous in even thinking I could do it... that there was a reason why lawyers and debt consolidation agencies exist. So now I definitely have my doubts.
My mother wants me to try though, so we might have a chance at convincing my father. Still, I'm worried if I can do it. First of all, we'll have to cancel the contract with the agency, which is a huge risk. (or is it?) Second, what if I fail and the CCs sue my parents? Should I take the risk and try negotiating with the CC companies?
Some info:
-over $70,000 debt in total for 5 cards
-most of the cards are late by two months
-companies are: Discover, Chase(2), Wells Fargo, US Bank
-my father has a steady business but not enough income to pay all the monthly payments (ie house, car, utilities, etc.)
-we have pretty much no huge lump sum money to offer as settlement
-the most we can budget is about 1.5k a month to go towards paying off the credit card debt
-the agency's program will last for 4 years, with a monthly payment of $1,300 or so
If anyone has any tips, advice, warnings or w/e to offer, I would be much obliged! I wish I could wash my hands of this but we are so close to being bankrupt. Any help would be so appreciated!!!
***so sorry! The above mentioned agency/company is for debt sett
***so sorry! The above mentioned agency/company is for debt settlement and resolution, not consolidation. My parents are not consolidating; they entered a program for debt resolution!
The only risk involved in backing out of the aforementioned cont
The only risk involved in backing out of the aforementioned contract would be that your parents may lose the fees collected thusfar. As far as being sued goes, that is a realistic possibility. What I suggest to you is that you enroll into a program with a reputable attorney staffed debt settlement company. If your parents were to be sued, the attorney for the company you are with could draw up documents to delay the court date for 1-2 years. In that time frame, the actual debt settlment company would make it their first priority to settle on that particular account first.
The monthly payment involved in a debt settlement plan will be much less than the $1,300.00 they are currently paying.
I am a representative here at Rapid Debt Settlement and deal with this sort of this each and every day. I would be happy to offer you further guidence to help get your parents back on the right track. Feel free to contact me via PM or through our page on this site. We are currently ranked at the bronze level here at debtconsolidationcare.
Can you come up with 50% of the debt ? If so, than call each one
Can you come up with 50% of the debt ? If so, than call each one of the creditors to request a settlement amount. Some will take 50% and some will not. Personally, settlement should be number one priority than paying debt reduction or consolidation organization.
I know discover will take 55 - 60% of the debt. Wells fargo will take 40% of the debt. Chase and US Bank not to sure. Bank of America if you have any, will take 15 - 30%.
You should consider borrowing 50 - 60% of the debt from friends and family.
Stay away from debt consolidation . I have $150 k in credit card debt. Settle most of it for $50,000, excluding real estate debt due now.
OP you indicate your parents own small business ? You should try
OP you indicate your parents own small business ? You should try your best to settle prior to creditors sue. If they get a judgment which they will if its from original creditors than your parents are shopping cart to creditors.
Quote:Originally Posted by AnonymousCan you come up with 50% of
Quote:
Originally Posted by Anonymous Can you come up with 50% of the debt ? If so, than call each one of the creditors to request a settlement amount. Some will take 50% and some will not. Personally, settlement should be number one priority than paying debt reduction or consolidation organization. I know discover will take 55 - 60% of the debt. Wells fargo will take 40% of the debt. Chase and US Bank not to sure. Bank of America if you have any, will take 15 - 30%. You should consider borrowing 50 - 60% of the debt from friends and family. Stay away from debt consolidation . I have $150 k in credit card debt. Settle most of it for $50,000, excluding real estate debt due now. |
The problem here is that most people do not have a lump sums of cash available.