What to do?
Date: Thu, 02/05/2009 - 19:26
Here's my situation.
I'm self employed and have around $28,000 in unsecured debt. I'm current (as of today) on all my cards and the highest rate I pay is around 13%. My vehicles are paid for, and I have no assets to speak of. Normally I bring in enough $$$ to pay double the minimum payment.
Although lately, business has been so bad that I've almost burned through all my savings just to make the MINIMUM payments. I have to assume that I will soon be out of $$$ and have to default on my debts. So what should I do? It sounds like you have to be really behind on payments in order to strike a good deal (settlement). Should I just let them go and wait it out or should I send a letter explaining my situation and hope that they work with me. My credit is currently over 760 and I'm prepared to take a little bit of a hit there. I may need to buy a new truck in a year or so. (I'm a landscape contractor) I've heard that Consolidation aint so good. If I want to settle, do I need to be very behind on payments? I'm ready to cut up the cards and pay'em off asap. I'm just worried that whatever path I take I may end up being unable to pay the debt off at all if the economy stays in the dumper for a while. What will I do then? I mean after all I have no assets to seize and garnishing my wages would be difficult since I'm self employed. Could I go to jail? Any advice is appreciated. I don't want to be in debt 20 years from now.
The good news is you've come to the realization that minimum pay
The good news is you've come to the realization that minimum payments won't work and yes you could potentially be in debt for 20 years if your situation does not change. It's a shame you've gone through your savings just to make minimums, if you've got retirement don't touch it. Settlement sounds like it could be a good option for you. Lots of good companies recommended on this forum. It will have a negative impact on your credit because in order to settle you do have to be delinquent on your cards, but you will get out of debt within a few months/years depending on how much money you can save each month. Credit's resilient and does bounce back. Can you go to jail - No.
excellent advice
I couldn't agree with Jack more. If you'd like some options regard DS or DC, PM me and we can work up some figures. Good luck!
Good advice above. It is important that you contact your credito
Good advice above. It is important that you contact your creditors and explain your situation. It is not unique in this economy. They may work out a settlement for you! No you can't go to debtors prison unless you travel to medieval times.
sadly your credit will go down the crapper. But this is only te
sadly your credit will go down the crapper. But this is only temporary. But you have atleast realize that you need to do something. Usually through debt settlement to get a good settlement there has to be non payment for 3-6 months to get the best settlement. Good luck
