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Starting out and need help

Date: Tue, 02/23/2010 - 14:17

Submitted by Todd Tourin
on Tue, 02/23/2010 - 14:17

Posts: 8 Credits: [Donate]

Total Replies: 7


I am just starting out with this. I have 90k in cc debt. 6 cards. I have just contacted my creditors to open the door of communication. They each offered me a reduced rate of 6% for 12 months. My questions are: 1. Should I accept these offers, then default 120-150 days and then negotiate settlement? That way I am saving interest that is accrueing on the defaulted loans while I save up. 2. After 120-150 I expect to have some settlement offers. What if they all come in at the same time? I won't have enough saved by then to settle with them all. What then? 3. Should I go with a law firm that has offered me 10% on the amount saved? I understand that the $$ I am giving them could be better used to settle other cards sooner. But, they need to get paid too for their services. Also, they are telling me that they can get 40-60% settlements. They can't guaranty lower, but could get 25-30%. I told them I could get 25-30% on my own after reading many testimonies on this site. They said that is not realistic. ????


[RIGHT][/RIGHT]


Of course "that's not realistic". Is this the first time you're dealing with a lawyer?

They want their 10% which will amount to you settling probably 75% of your total balances at the end with all the fees that will end up piling on. Each creditor is different But i wouldn't except any settlement offers for the first 3 months you are behind. I am behind 3 months on Wells fargo Business, Bofa, and CapitalOne. I am reading other peoples situations and gathering as much knowledge as possible so when its time to settle, I will start my offer of 20% of the balance.


lrhall41

Submitted by Hrach on Tue, 02/23/2010 - 15:15

( Posts: 7 | Credits: )


Todd,

I stopped paying 9 at the same time $60,000 in July 2009 and as of today have settled $40,000 for an average of 25%. None spoke settlement until I was 150+ days late. You can do this own your own.

If I were to do again, I would have staggered non-payments so I had time to accumulate settlement funds


lrhall41

Submitted by OZZIE69 on Wed, 02/24/2010 - 06:54

( Posts: 555 | Credits: )


That is very encouraging!!! I am glad to hear that. If you don't mind, can you give more details? How often did you communicate with them? Phone, mail? Did they threaten to sue? How did you save for settlement? I am just starting out and I want to make sure I am doing everything correct. Thanks


lrhall41

Submitted by Todd Tourin on Wed, 02/24/2010 - 07:14

( Posts: 8 | Credits: )


I stopped paying all at the same time, however, knowing I would probably have to settle them all around the same time also. total about 52K right now. I am "ok" with settling 50%, and i think i can do it even now, but shoot for 35% average overall. I have a friend in car financing and he recommends holding out until summer, banks will get even more desperate as financing will get even worst believe it or not (i do).


lrhall41

Submitted by Hrach on Wed, 02/24/2010 - 07:17

( Posts: 7 | Credits: )


Quote:

Originally Posted by Todd Tourin
That is very encouraging!!! I am glad to hear that. If you don't mind, can you give more details? How often did you communicate with them? Phone, mail? Did they threaten to sue? How did you save for settlement? I am just starting out and I want to make sure I am doing everything correct. Thanks


The bulk of it was with Bank of America and then 3 other cards. They will call weekly on average and none threaten to sue. I took the monthly payments to them and put in separate checking account and accumulated cash.


lrhall41

Submitted by OZZIE69 on Wed, 02/24/2010 - 10:29

( Posts: 555 | Credits: )