Hoping...
Date: Thu, 09/21/2006 - 08:37
I am seriously in debt. I can not afford even the minimum monthly payment on my unsecured debt and the percentage rates on my credit cards are outrageous!
I saw a credit counselor two days ago and, after evaluating my situation, he recommended that I simply stop paying on my accounts. He stated the worse that could happen would be that it would affect my credit score which is already horrible.
I am not going to be needing any credit in the foreseeable future so, although I hate to stop paying, I see no other alternative.
Has anyone else in the forum been in an experience similar to mine? Has anyone just stopped paying in the hopes the credit companies would negotiate with them? I also understand a lien could be placed on my house but even that is better than what I am going through now.
My payments are all up-to-date and the counselor told me very few companies would consider a settlement with up-to-date payments. It is only after a few months of non-payment that they will take you seriously. I am scared but there is just NO WAY possible for me to manage the payments.
Any advice or feedback?
You have chosen the right move by signing up here. A counselor
You have chosen the right move by signing up here. A counselor will contact you and discuss your options. With consolidation they combine all your credit cards and unsecured debt into one monthly payment. I wouldn't recomment stop paying on your cards. First of all it will hurt your credit. Then you start getting harassing phone calls from collection agencies which sometimes is unbearable. The companies can sue you and get a judgement. Each persons situation is different and I am sure someone will be along with more advise.
The counselor explained you the process of a debt settlement pro
The counselor explained you the process of a debt settlement program. In this plan, one must have to default in his account so that the credit companies realize that you are unable to make the payments on your own. There are positives as well as negatives of a settlement plan. While you are at the mercy of your creditor's accepting the proposal, there is also a possibility of about 40% to 60% of the total debt getting waived off. Look into this page for understanding the settlement program better
http://www.debtconsolidationcare.com/debt-settlement.html
Since you were never late in your payments, consolidation will be a good choice for you because you can start with this program even after being current on your bills. Extra fees added on the principal amount also get waived off. Go through the benefits offered in this link
http://www.debtconsolidationcare.com/benefits.html
Evaluate the total amount of your debt and then figure out the program that will sound beneficial in your situation.
