Does this sound like doable plan ?

Dear Jay,

I don????????t think that debt settlement will be the right choice for you because your debt does not look that bad. Debt settlement(DS) can be looked upon as an option only if you are at the verge of bankruptcy and want to avoid the same. Thus, you may say that DS is a program for avoiding bankruptcy.

But your debt situation does not look like that. So, I will suggest you to avoid debt settlement because it will drive down your credit score like anything and will create hindrance for you for getting credit/ loan in the future.

The best way for you to become debt free is through self repayment plan.

You can also get Free Counseling from our community ???????s financial advisor.

Regards,

Phoenix

Hi jay,

At this juncture I would rather suggest that you try to negotiate lower payment with the credit card companies. I have seen a good video in the forum, which may tell you the ways to do negotiation. I'm providing the link below.

http://www.debtconsolidationcare.com/videos/negotiating-credit.html

There are few others too, which might come handy in your case.

I agree with phoenix, debt settlement is a hardcore program and may not be the suitable option in your case. Moreover, you need to be delinquent on the accounts for a specific time period, before being able to make the settlement offer to the companies. Rather, if you can successfully negotiate a lower payment with them, it not only will help you to pay-off your debts but will save also your credit form the negative entries.

I thought that too at first. But the problem now is I am already working a 2nd job and my wife just lost 1/2 her income. Her income was keeping us just before going 30 days late on bills. Now we are going to be having unknown Doc and Med bills which will probably push us way over the edge. The reason I say unknown is because our 16 year old son is bi-polar and has O.D.D. and very bad anger issues and is flunking school now and we need to get him help before something worse happens to him. I feel it is more important to get out son help right now than pay the CC bills since I cant do both. Also, I tried working with CHASE on two of our cards and they basicly tricked me into paying about $1000 and giving me no help. They said once I get under my limit and get my charges and get the accounts up to date they can talk to me about hardship help. SO I got both cards up to date and all fees paid and I called the hardship dept and they said SORRY we have nothing you qualify for. So now I am stuck at the point that I have to choose the important stuff to pay.

Am I wrong in my thinking ? Please help I value everyones opinion.

J

OOPS sorry I forgot to log in BUT that message above is from me.

J

In light on this new information you provided it looks like you are having a hardship and thus may very well be a good candidate for settlement. Normally I would suggest credit counseling but if you are overextended it won't help because you won`t be able to afford the monthly payment. With debt settlement you monthly payment will be about half of what you are paying now and you will usually be debt free in 18-36 months.

DO NOT TOUCH YOUR RETIREMENT

There is not a single financial adviser that would ever suggest you dip into your retirement. I suggest you do some shopping with some settlement company's and make sure they have a good reputation with the BBB. I hope this helps . Have a great day. :D

Welcome to the Community Jay :D : I did the Do it Yourself, but I didn't have a tremendous amount of debt, as compared to others.

If you have an additional $400 a month, apply that to one of your cards.

This is what I did. I started out with my lowest balance card, instead of working on my highest interest one. I did this because I could see results faster. I paid the payment and added extra on it, we scrimped and cut back alot but we did it.

When that was paid off, I took that cards' payment and extra, and put it toward the next lowest balance one. I, also during this period, sent in extra if I had it during the month. I continued doing this and when we got bonuses, paid it toward the one I was working on. This worked for us, and we are debt free with the exception of a CA I have been dealing with for two and a half years.

AS far as your son, I know what you are going through. I have an adult son who was diagnosed about 7 years ago with OCD,Panic Disorder, Depression,Agoraphobia and on and on. It is very difficult to deal with, but once the meds are straightened out, it helps. If you run into bills you cannot afford,go to their financial dept, and ask to fill out forums for a charity case.

My brothers wife had a stroke a year ago at age 45 and had a tremendous amount of bills. He went through all the steps and they marked off alot of his bills. Of course their income was low because he had to stay home with her for a year to feed, clothe and help her.

Best of luck to you..keep us posted..karen

That????????s a very good real-life-experience-suggestion Bossy. Do-it-yourself is the best option to a debt-ridden person for becoming debt-free.

I will ask Jay to follow the steps followed by Bossy to become debt free. It will help you to get rid off your debts in the cheapest way ever and also help you to protect your credit score from adverse effect.