Step One.... I need help
Date: Wed, 11/11/2009 - 17:48
My total unsecured debt is with Chase, Amex and Citi. I have contacted a few debt collection agents, but am scared to move forward, one asked for a Power of Attorney (no thanks). Have tried doing my due diligence with the settlement firms with regards to affiliations like BBB or TASC, but again am very nervous about the promises and sending money to an "escrow" account.
I am 2 months behind on Amex bills and current with other creditors. I spoke with Amex today and they were unwilling to help me out. What do I do at this point? I can't settle for a lump sum of money, I need a manageble monthly payment. Should I try to settle on my own? I understand that this is going to trash my credit for how long, I have no idea.
Anyone?
Hi Lukas, You are right about trashing your credit in the mean
Hi Lukas,
You are right about trashing your credit in the meantime which makes me wonder, why exactly are you so opposed to filing for bankruptcy? It sounds like you think its such a bad thing but isn't getting yourself in that much debt to begin with? I would say you need to atleast consider every option that is available to you. I had to file for bankruptcy over 5 years ago because it was the best thing to do for my family. It was a lesson well learned and now i am doing much better financially and just purchased a new home. It's not the end of the world and you can't let your own shame get in the way of what's best for the one's you love.
Most creditors are only willing to settle with you if you are willing to pay a lump sum of money so I don't think that will work for you. You could also consider working with a debt settlement company but in some cases that can hurt your credit just as bad as filing bankruptcy.
Best of luck to you whichever way you choose!
Your lenders might not entertain the idea of settling with you y
Your lenders might not entertain the idea of settling with you yet since you are still current on your cards but you have the option to discuss with the lenders to lower the interest rate and such. They might agree if you let them know that you are likely to default if they don't. This you can do by yourself without any assistance from a settlement company.
Now, regarding the Amex card, discuss a settlement by yourself. If you search the site you'd find many instances where the members have settled their debts by themselves. You can check with the DIY for help as well.
Mckaybiz, to be more specific, I have another property with equi
Mckaybiz, to be more specific, I have another property with equity in it that I do not want to lose in a Chapter 7. My current house may or may not be valued with equity, so I'm not certain we would lose it or not. My wife does not want to lose the house. I don't want to lose the investment property. If I didn't have property to lose, I would file Chapter 7 and just be done with it.
So it sounds like there is no guarantee that Chase, Citi and Amex will settle? I understand that my credit will drop significantly over the next few years. I can deal with that, I just don't want to lose my real estate and or liquidate my 401K.
I would not deal with a settlement company who is holding you mo
I would not deal with a settlement company who is holding you money in an escrow account. There are reputable companies that will allow you to hold the money in your own account. That way you have control over your funds. That is great you are doing your research just remember with the BBB, they are a for profit company who will give a company a good rating for paying to be a member. If you do not pay their fee you get a bad rating. But, look at the number of complaints against the company, make sure they have all be addressed by the company, and look for any government actions against the company on the BBB, that is a nice tool to have.