A financial disaster...
Date: Mon, 10/26/2009 - 01:58
-I have two CC's, one from Verity Credit Union ($8,000) and another from Bank of America ($11,000).
-I have two seperate Sallie Mae loans that amount to $20k and $25k (this doesn't include interest and I have co-signers on both, but I have kept these debts current by paying the forbearance fees).
-I have government student loans that amount to $18k.
-I also have medical bills from various health care providers that amount to roughly $3k. I am very injury prone and my health insurance refuses to cover pre-existing conditions (knee surgerys).
I didn't mean take on so much debt and went into college with $0 on both CC and a credit score of 720, but it accumulated really fast. I graduated in March and have been jobless ever since I graduated and my bills each month amount to $1800. This economy has driven the job field in the dirt and now I'm over my head in debt and I have no way out and no clue on what to do.
I've been reading about trying to settle my debt at 30%-50% with BOFA and I'm thinking I can do similar things with my other credit cards and my medical bills. Do I have to come up with the money all at once? BOFA offered me to lower my monthly bills from $430 to $190 and at 0% interest. I cannot afford $3000 to settle, but if I start paying monthly I probably won't be able to settle at 30%.
Any guidance on this situation would be greatly appreciated. I've been living in a financial nightmare and I need to stop the letters and phone calls please!
Quote:I've been reading about trying to settle my debt at 30%-50
Quote:
I've been reading about trying to settle my debt at 30%-50% with BOFA and I'm thinking I can do similar things with my other credit cards and my medical bills. Do I have to come up with the money all at once? BOFA offered me to lower my monthly bills from $430 to $190 and at 0% interest. I cannot afford $3000 to settle, but if I start paying monthly I probably won't be able to settle at 30%. |
Yes, making payment arrangement is also possible. Try to negotiate with the lenders for lower payments.
Are these accounts still with the original lenders or with the collection?
also if you negotiate a settlement i do hear alot of them are al
also if you negotiate a settlement i do hear alot of them are allowing payment plans even though most want the money upfront. do you have any money put away? have you stopped payments yet? or are you still paying? if you are currently making payments they wont negotiate a settlement at this point usually until the debt is 90days past due. good luck!
I haven't been paying on anything except the Sallie Mae forbeara
I haven't been paying on anything except the Sallie Mae forbearance fees. I think the credit cards are at least 120 days unpaid and yes the credit cards are with the original creditors.
then i would start trying to make negotiations now. many people
then i would start trying to make negotiations now. many people disagree about when to start settling negotiations. do you have any money put away yet? Alot of people say its better to negotiate with the origional creditor(better on report) while others say that you get a better deal (money wise) through the collection agencies. hopefully you have started saving so that you have money available to settle. While im hearing of some great things were people are getting say 3 month payment plans, alot of creditors will give you a better deal with all the money upfront, or may not settle at all till you pay in full.