HELP! ~100k in debt- where do I start???
Date: Sun, 06/14/2009 - 16:20
First and foremost thank you to everyone for their contributions to this forum. There is a great deal of helpful information here.
Here is my situation: I currently have ~100k in mostly CC debt. All accounts are current, but this summer that will most likely change as I do not have enough summer savings to make all minimum payments. I live in California, I am a teacher, and I do not own a home. My the bulk of my cc debt is as follows-
Amex- 9,000
BofA Loan- 47,000
BofA Card- 9,000
Chase- 1,200
Citi- 14,000
Disc- 14,000
My question is, where in the heck do I begin? I considered credit counseling, but now I'm not sure. I am very confused,
but want to be free from the pressure this debt brings.
Any help and insights would be greatly appreciated!
This means that you have a total debt of $94k which is no doubt
This means that you have a total debt of $94k which is no doubt a very big amount. You need to first think whether you will be able to repay off this large amount in full in the future. Does your income permit you to do so? If not, then you need to consider debt settlement where you are required to pay off 40 to 50% of the outstanding debt amount.
Settlement is probably going to produce the lowest payment for o
Settlement is probably going to produce the lowest payment for on a monthly basis. Each industry has there pros and cons. In settlement, your accounts will go delq until settlement can occur. This does impact your credit negatively while you are in a program such as settlement. Do your due dilgence and research everyone you call. Check with the BBB. See if they have any certification such as USOBA or IAPDA. If you can afford to pay close to the minimum payments which is around $2,500 if you have around $100K worth of debt, then Consolidation or Credit Counseling might be able to help you. If you can't afford $2500 a month, then settlement will be your best option. Bankruptcy should be your last option and if you do Bankruptcy Chapter 7 is the best you can file because it is a total elimination of debt besides federally back loans. If you are looking into Chapter 13, you might as well do settlement. Remember there is a light at the end of the tunnel. You just have to choose to walk toward the light.
Thats alot of debt... has it been building over years or did som
Thats alot of debt... has it been building over years or did something just come about that you need to take alot out? If its been building over years first thing you need to do is get a game plan so when you do get out of debt you dont just go back into it. Settlement would work if you had the money in the bank or could get it. I dont know what kinda of money you have now or could have saved in 3 months, you need to figure that out. If you cant get all I would try to work with BofA on the large loan and see what kinda of deal that could give you over like a 5 year plan. If you can get the money I would then just let all the smaller ones go pass-due and settle with them (30% if your lucky on all would be around 15k).