How To Start-Settlement
Date: Sun, 03/01/2009 - 20:22
I read the details about debt settlement and I found that this is my solution to get out on my debt. I'm currently employed but my husband is out of work for 2 years already. He maxed out the SDI and withdrew his 401k to pay our monthly mortgage and car payments. While me on the other hand is shouldering the daily expenses, utilities, and credit card payment. My husband doesn't owe credit cards that much only me. I don't see any improvements that will happen in the near future, like husband finding a job. His 401k funds are running out and soon I need to pay our mortgage and car payment and my income is not enough to shoulder all these expenses.
I currently have $35k on credit card bills and monthly minimum about $900. (2-Chase, 1-Citicards, 1-Medical Bill, 1-Providian/Washington Mutual, 1-Bank of America). No default payment as of February 2009.
What should be my first step in doing debt settlement?
-Stop paying monthly minimum beginning this month, March?
-Should I contact any of my creditors to let them know about my financial crisis?
I will appreciate anyone that can help me or instruct me in details on what to do.
Thank you!
The steps mentioned in the following page may help you: - How
The steps mentioned in the following page may help you: -
How to settle your debts yourself and simplify your life - a stepwise guide
you would first need to stop paying and start saving. Save ever
you would first need to stop paying and start saving. Save every possible dime that you can. I have focused my blog on all sorts of ways to cut expenses. Dont think that its only a dollar, if you add it all up and look at it long term like how much does this cost me a year, it will save you hundreds even thousands.
But the first step is to stop paying let them go into collections. Most of us agree that during settlement you get the best deals when in collection. you are going to need to be atleast 3 months-6 months late before they are going to be willing to settle. The longer time goes on the better the settlement, but be cautious the more time goes on the more likely you are to get sued.
So after that 6 month mark call were the account is and say hey, this is so and so account # i have x amount of dollars and i want to settle this account. Start low because they will counter offer most likely trying to get every dollar out of you they can. a good average settlement is around 50% of the debt.
good luck soon you will be out of debt. Keep in mind settlement stinks, and its a long road but it will be worth it. Tighten your belt and make every dollar count. and stick to a plan no matter what. It will be a rough year. but many will tell you it will end eventually!
Know all the facts about settlement so they cant lie or con you. knowledge is power and believe me they will say anything to scare you But if you are well informed you will see through thier lies and scare tactics.
