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Lots of Debt...What to do...

Date: Thu, 08/19/2010 - 06:35

Submitted by anonymous
on Thu, 08/19/2010 - 06:35

Posts: 202330 Credits: [Donate]

Total Replies: 7


Boy, I ask myself how my husband and I got ourselves into so much debt ($70k) but I really have to admit that it's just been overspending and being irresponsible. My husband's salary took a sharp decrease about 1 1/2 yrs ago but we thought it would increase as it had done in the past so we used our cc to keep our standard our living the same. With the economy taking such a bad turn, his salary has remained the same.
Here is what we owe and we just are sort of overwhelmed as to what to do ...
There are my accounts..all are just over 90 days late
* citi ($11k)
* chase ($7k)
* at&t universal ($18k)
Husbands accounts...all are paid up to date
* chase ($4k)
* amex ($10k)
* amex ($19k)
I guess our plan was to try to keep one of our credit good...but really, the goal is to try and figure this problem out. Chase won't really work anything out with me...they keep saying they suggest calling novadebt...or I can just start paying again of course. I'm not really sure what to say to them except I don't have enough money to pay everything. Should I go thru nova debt? They (chase) has recently sent me a letter saying my account will be reviewed for possible legal action...of course, I want to avoid that. Any advice would be super appreciated. BTW, I don't have extra cash to offer any as a settlement.
Thanks so much!


Generally, you'd want to work toward settlement. Most people do that by stopping their minimum payments on all cards, setting that money aside for 3-4 months, then negotiating settlements. Have you been able to save any of the money from the past 90 days of not making payments on your cards?


lrhall41

Submitted by OhioGal1 on Thu, 08/19/2010 - 13:11

( Posts: 5253 | Credits: )


By next month, I will have saved about $1000...not much I know but my budget is really thin and some things needed to be done (car inspection and such) and I know that small amount is not going to make the cut. :-( I am working on saving more but I'm not quite sure I'm going to get enough to make a difference.


lrhall41

Submitted by lebe on Fri, 08/20/2010 - 05:45

( Posts: 2 | Credits: )


Hi,
I would also advise settling. In the beginning I was sure I had no cash to settle with but so far I have managed to settle 3 of 4 and it feels good.
you can search the forums for my story.
Mainly I just wanted to say that I think my situation was about like yours except that I am one person who had nearly 100k in debt!!!! So take hope.
I identified with how long it took you to realize the debt. I was laid off Jan 09 for 4 months and went back to my same job but at huge paycut and no more OT. It took me more than a year before I realized how much trouble I was in.
Good luck,
Kaylee


lrhall41

Submitted by kaylee on Fri, 08/20/2010 - 06:34

( Posts: 176 | Credits: )


Another option might be borrowing from a family member to settle these accounts. You may be able to settle your husband's $4k card for the $1k you already have. I'd start there. How much are you currently paying on your husband's accounts? You may be able to stop paying those larger ones for a few months and leverage that savings to pay off a couple of others. Once you start settling them, your cash flow increases and there's a bit of a snowball effect.


lrhall41

Submitted by OhioGal1 on Fri, 08/20/2010 - 08:19

( Posts: 5253 | Credits: )


It's just so embarrassing but no, we have very little in our 401k...about $8k...I could take that out to help me settle the ones that will settle. From what I have read, it seems like I have to wait it out a little more and keep talking with them (something I have avoided) and see where it leads.

I am just very fearful of being sued and Chase is already saying my account is going to be reviewed for that...I'm guessing I should talk with them and see what I can come up with.


lrhall41

Submitted by lebe on Sat, 08/21/2010 - 05:52

( Posts: 2 | Credits: )