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Gonna try the debt settlement journey on my own ADVICE welcome

Date: Thu, 09/09/2010 - 11:42

Submitted by breaking free
on Thu, 09/09/2010 - 11:42

Posts: 9 Credits: [Donate]

Total Replies: 2


My husbands hours have been slowly getting cut back over the last 18mths. He went from 60 hrs to approx. 32 hrs as of this month and occasionally only 24 a week. That is what has lead us down the road we never planned to travel.
I have been a Stay at home mom for the past 14 years. We have always lived on his income.
As of now we are current on our mortgage and car loan. My husband has a jeep that is worth about 2,500 and that is paid for. All of debt is credit card debt besides the mortgage and 1 car loan. The only cc that we are late on as of now is BOA but that is about to change as we can not afford to keep paying and we have run out of things to sell to continue to pay on them.
the ccc are as follows:
BOA 7,053.00 39 days late
Discover 6,400.00 current as of now
Capital 1 11,900 current as of now
Lowe's 1,350.00 Current
Sam's 990.00 Current
Gap 450.00 Current
Barclay 400.00 Current
Target Visa 1,000 Current
I can try to continue to pay on the ones with the balances under 1,000 and the Lowes is interest free for 6 more months. BOA, DIscover, and Capital 1 are all closed as of now because I went into hardship programs with them when the hours started declining severely. The three cards have not been used in over 18mths. Will the fact that they have tried to work with me through the hardship programs help or hurt my ability to reach a settlement with the three of them or will it show that we tried and still couldn't make it even on their program?
Will it look bad if I am paying on the low balance ones and not the high ones? The payments on the lower ones are very minimal compared to the 3 large ones. I hate that it has come to this but I see no other way.
I have called BOA and they have been very nice so far. THey just keep saying pay when you can. Is there a chance that they won't offer me a settlement since I paid 2 full years worth of payments on the hardship plan. I can not pay them now at all.
We will get the money for the settlements from our parents which I hate but we are trying to not file for BK. Any advice is greatly appreciated.


Being on the hardship plans will not hurt future settlements. Actually it is better in the case of Bank of Am since your interest rate should be quite low. When you default with them interest fees won't pile on as bad. I was on their hardship, defaulted and settled for 25% on big balance than yours.

I continued to pay my smaller ones and no one ever mentioned that.

Just remember that BK should be last resort. If your parents can help than default and settle.

Cap1 and Discover can be difficult. Use search button at top of page on these 2.

I am sure others will give additional advice.


lrhall41

Submitted by OZZIE69 on Thu, 09/09/2010 - 13:01

( Posts: 555 | Credits: )


Thanks Ozzie!! I have read that Cap1 and Discover cards can be difficult to settle with. My greatest fear is being sued. We live in Florida and I am not sure if they can get a lien on our home (we live in it) or if they would go as far as to garnish wages.
My husband is the only one working. I have read the Florida Garnishment laws but I must admit I don't understand them. Is my husband head of household? Can they put a lien on your home?


lrhall41

Submitted by breaking free on Thu, 09/09/2010 - 15:29

( Posts: 9 | Credits: )