New Here... Acct. now in Collections... HELP!
Date: Wed, 06/01/2011 - 18:03
My husband lost his job in June of 2010. I was a SAHM of 2 boys at the time. Since that time, we have both seen searching for fulltime jobs with no luck. I have a parttime job and my husband still draws unemployment.
Most of my debt is up to date in payments. But, one huge debt ($22,000) on a Citibank credit card is delinquent. I have made payments as I could since the Fall. But, we are barely scraping by to pay mortgage, electricity, water, food, gas, etc. I couldn't afford what they wanted per month. Citi called constantly. I offered to send a certain amount but they wanted more. I finally made up my own "please stop calling" letter and told them what I would send.
The calls stopped for a couple of months. However, this past Friday I received a letter from a collections agency (Smith Debnam Attorneys at Law). They say that they've been retained by Citi to collect the balance due. They want me to resolve the claim before legal action becomes necessary. They have given us 30 days to resolve this matter.
The calls started today.
We, obviously, cannot pay them $22,000. I can figure out what amount we can send and send something weekly. But, what do I do?
I don't want to talk with them on the phone. Rather, I want to communicate with a letter so that I have verification in writing. Plus, I don't do well with confrontation. What sort of letter do I send?
They have my balance and their file number. Do I need a validation of debt from them? I know I owe it.
What is my first step? Can I call Citi and try to deal with them again? I don't think Smith Debnam bought my debt. Instead, I think they are just working for Citi to collect the debt.
I would appreciate any and all help. We don't want to declare bankruptcy. But, we are really scared of legal action. We don't want to lose our house and cars!
We need help from those who have 'been there, done that'. I have read many other posts and everything is very helpful.
Thank you
Stephanie
Most of my debt is up to date in payments. But, one huge debt ($22,000) on a Citibank credit card is delinquent. I have made payments as I could since the Fall. But, we are barely scraping by to pay mortgage, electricity, water, food, gas, etc. I couldn't afford what they wanted per month. Citi called constantly. I offered to send a certain amount but they wanted more. I finally made up my own "please stop calling" letter and told them what I would send.
The calls stopped for a couple of months. However, this past Friday I received a letter from a collections agency (Smith Debnam Attorneys at Law). They say that they've been retained by Citi to collect the balance due. They want me to resolve the claim before legal action becomes necessary. They have given us 30 days to resolve this matter.
The calls started today.
We, obviously, cannot pay them $22,000. I can figure out what amount we can send and send something weekly. But, what do I do?
I don't want to talk with them on the phone. Rather, I want to communicate with a letter so that I have verification in writing. Plus, I don't do well with confrontation. What sort of letter do I send?
They have my balance and their file number. Do I need a validation of debt from them? I know I owe it.
What is my first step? Can I call Citi and try to deal with them again? I don't think Smith Debnam bought my debt. Instead, I think they are just working for Citi to collect the debt.
I would appreciate any and all help. We don't want to declare bankruptcy. But, we are really scared of legal action. We don't want to lose our house and cars!
We need help from those who have 'been there, done that'. I have read many other posts and everything is very helpful.
Thank you
Stephanie
Hi! Welcome to the forums! First of all, don't get panicked. Se
Hi!
Welcome to the forums!
First of all, don't get panicked. Send a written notice to the collection agency to validate the debt. Once they send you the debt validation letter, you should try to settle the debt with them. Check out the following article to know how to settle debts on your own:
http://www.debtconsolidationcare.com/steps.html
If you are not able to settle your debts on your own, then you can get professional help from a debt settlement company.
