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DIY debt settlement

Date: Fri, 07/30/2010 - 11:43

Submitted by Mia Pryvit
on Fri, 07/30/2010 - 11:43

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Total Replies: 5


I have $17,500 in credit card debt. My 2 credit cards have been closed for one and a half years and I've been making on-time payments on them. I have been unemployed/underemployed since December 2008 when I was laid off from my job of 10 years. I am thinking about trying to settle these debts myself. I feel uncomfortable with stopping payments. Might the creditors be willing to negotiate while I'm current?
Thank you.


To go for a settlement process, you'll have to be behind your payments for at least 3-4 months. Otherwise, no creditors will agree to the settlement process. The reason of this being, they assume that you're capable of making the payments. It's good that you want to go for the settlement process on your own but contact the creditors with your settlement proposal after 3 months of no payments.


lrhall41

Submitted by paulcahill80 on Fri, 07/30/2010 - 21:20

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If I stop making payments there's no turning back because then the credit card companies will increase the finance charges which are currently at 9%. My house is up for a short-sale and if it doesn't sell will be foreclosed. I'm paying $350 a month towards the credit card balances. My credit score is already low because of the house foreclosure. So if I stop making payments on the credit cards, they will increase the finance charge and my credit score will take another hit.


lrhall41

Submitted by Mia Pryvit on Sat, 07/31/2010 - 11:12

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Why are you worrying about unsecured CC debt when your secured mortgage is in default and your FICO is already trashed? There's little diff between very bad credit and a bit worse.
Any finance charges that accrue on the CC's can be included in final settlement negotiations anyway (like subtract from the balance before you figure what % offer you want to start out with). IF you want to go DIY ... I'd advise you not to dither and stick to your guns ... and grow a tough hide cos you'll need it!


lrhall41

Submitted by WeShallOvercome on Sat, 07/31/2010 - 12:06

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BTW ... I'm at 3 months and negotiating $34K in biz debts directly with Amex and Citi. You will be handed off (to higher level "negotiators") each month... which can only be achieved by stopping those minimum monthly payments (with good reason naturally). Be clear about what you can and can't do ... stick to the same story with every single rep ... be nice, and truthful (I've had reps commiserating and practically in tears with my true story) and you should come out the other end with a result.


lrhall41

Submitted by WeShallOvercome on Sat, 07/31/2010 - 12:14

( Posts: 13 | Credits: )


Greetings,

And I quote "So if I stop making payments on the credit cards, they will increase the finance charge and my credit score will take another hit"

Just my 25 cents worth here.
Forget the credit score, your main focus should be economic survival.
Take care of food and shelter, then utilities and transportation.

Respectfully yours,
King "Kash" Jabba Labba


lrhall41

Submitted by King Jabba Labba on Sat, 07/31/2010 - 14:22

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