I am so screwed. Need some advice please! (personal loans, credit cards, and payday)

What state are you in???

The credit union ....they more than likely will not settle that much or they will sue. They are responsible to the membership. Plus they will cross collateralize....this means if you have any money in your bank account they WILL take it. I would highly suggest opening another bank account.

I'm in Kentucky, but all accounts opened when I lived in Ohio.

I don't have any money in the credit union account.

Should I skip some payments so I can atleast build up something to live on?

http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

Read the laws for payday loans in ohio....ohio is a loan interest loan state and no rollovers are permitted. Term of loan is max of 31 days,. So it sounds like you owe principal only. Lets wait for ohiogal to chime in tomorrow morning...I will send her a pm.

The CashNetUSA one is a CSO, so I'm sure that's legal --- they are pretty well known and do a ton of business in my state, so I doubt they are doing anything illegal.


I'm looking for advice on what to do with the other unsecured debts. The loans/credit card is from 3 different credit unions, plus some credit cards from major banks.

Good morning!

I want to work out a settlement plan for you but I need to know how much you're paying monthly on each of the credit cards (don't need credit union info).

It appears you've already worked out a payoff arrangement with CashNetUSA so that's good.

WesternSky is tribal and illegal. How much did you pay to them before default?

I believe the CashNet one is perfectly legal since they are a CSO.

I'm most worried about what to do with the unsecured loans/credit cards. Should I skip my payments for a while?

My credit is already trashed.

I need to save some money to live on. I have $100 right now, and it's killing me!

Sorry - didn't see there were responses before my last post!

Here are my minimum payments:
Here are my debts:
$128/ month $2,500 to a Credit Union - personal loan (CURRENT - 7% interest)

$105/ month $3,500 to a Credit Union - visa card (CURRENT - 11%)
$205/ month $12,000 to a Credit Union - personal loan (CURRENT - 12%)
$75/ month $2,800 to Paypal credit card (19% - CURRENT)
$65/ month $2,000 to PNC credit card (16 % - CURRENT)
$25/ month $500 to Chase credit card (19% - current)
$25/ month $500 to Capital One credit card (20% - current)
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$198/ month for the next four years. $1,500 to Western Sky (payday loan - 429% - late) waiting for default to make settlement offer with collection co.
I've paid them $475 so far, original loan was $1000 + 500 origination fee. I sent them the "your loan is illegal" letter, and they responded with why it is legal. I'm sure they will pursue legal action or very aggressive collections if I don't pay!

$1,300 to CashNet (payday loan) - will pay $333 over next 2 months to satisfy this. This payment plan was agreed to by CashNet



Thanks for all of your help!!!!!!!!!!!!

I think you doing a good job so far, a settlement sounds good and if you need more help let me know.

milton

Couple more questions and observations.

Can you break down your actual payments to WesternSky for me? How much have they actually taken from your account. And, keep in mind. They only deposited $1000 into your account, that's all they're getting back. Their $500 processing fee and the interest and other fees they're charging are a bunch of BS. You don't owe them anything, technically, so, they should count themselves lucky they're getting back what they gave you.

Can you tell me where the rest of your money is going monthly, and break it down. How much for rent, gas, groceries, utilities, etc.?

Thanks much!

I've made 2 payments to Cash Call (bought the loan from western sky) - 1 for $250 and 1 for $198. I guess I technically owe them nothing, but I'd be willing to pay back the other $550 just to get them to stop calling.

They are reporting on my credit (which doesn't really matter anymore because my credit is trashed)

I'm worried about them calling me everyday and then selling to a collection co or suing me for some astronomical amount - like $5,000 by the time they sue me and interest accrues.


I pay:
$50 for cable/internet
$60 for phone
$200 for gas
$150 for groceries
$175 for car insurance
$80 for utilities

Per month.


I'm also worried that if I stop paying the credit union loans that they will sue me and try to take me to jail. The largest loan I have was a consolidation loan which went to payoff 3 credit cards. It did payoff the cards, but I used that credit again (gosh, I'm an idiot).


Thanks again for your willingness to help

OK. I'm leaving here shortly but will work out a plan for you to get started on settling these debts :) Hang tight.

Thank you so much for taking time to help me! It means a lot! I am in a constant state of anxiety/worry about this cloud hanging over me.

OK. I've worked out a plan for you.

This is what I would do if I were in your situation.

First and foremost, stop worrying about WesternSky. They're operating illegally and they know it. They just want money from you and they'll do or say anything they can think of to get it. They're liars. Do NOT let them intimidate you. If they send you notices that talk about court, they're talking about native amerian court. That court has absolutely no authority over you. They're bullies. You only owe them $552, not a penny more.

AND, if they continue to try to bully you and won't accept your generous offer of paying them back the remainder of the principal, on your terms, then I'd remind them that they can either accept your terms and the $552 or they can get nothing. Their choice :)

I suggest you continue paying the 3 credit union cards/loans and your other regular monthly expenses (including your student loan payment).

With your income of $1150 per pay, that's (approximately) $2300 per month income. If you subtract the monthly expenses I mentioned, that leaves you with about $480 each month for the next two months. That's going to be your "settlement fund."

After 2 months, Cashnet will be paid for and you'll be squared away there. Starting in the 3rd month, you'll have about $800.

So, at 90 days behind you should have a little nest egg in your settlement fund of about $1750. (your utilities and credit union cards/loans should be still up to date and you aren't charging anything new on any of the accounts)

So.

At this point, I'd start offering settlements. On the small accounts, offer 50%. If they bite, you'll have just paid off 2/4 cards for $500, leaving you with around $1250. I'd make an offer to PNC and Paypal for 30% (PNC @ 30% = about $600 and Paypal @ 30% would be about $850). You actually have almost that much now, and will have an additional $800 by the end of the month.

You should be able to settle Chase and Capital 1 around 90 days late and the other two at 120 days late.

You'd be rid of all 4 of these cards after 4 months. At this point, I would send the balance you owe to WesternSky.

THEN, and this is the important part, you're going to start paying yourself first. You will put $300 per month into a savings account. The extra $500 you will pay extra on your lowest balance personal loan/credit card. So, you'd pay off the $2500 personal loan first, in just a few months, then the $3500 card, then the $12000 card, then the student loan. Once all of those are paid off, you would put ALL of your extra money into a savings account or invest it some other way (contribute more to your 401K, open an IRA, etc.).

Oh, and in a month where you have a 3rd paycheck (which will be August for me), use that entire paycheck in the following order for whichever situation applies to you (1) settle debt (2) pay off credit cards / loans and (3) save!
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Keep in mind, it almost never works out quite this perfectly but, you will settle these accounts and pay off the credit union accounts.

The beauty of your situation is that, even while you're settling, you'll still be rebuilding good credit by paying the other cards/loans on time.

You should also dispute the CashCall/WesternSky item with the bureaus and have it removed from your account since the loan is illegal.

I really hope this person comes back. :(

Yup...that is why everyone should register.

Hi - sorry! I have been away for a few days.

Thank you so much for the advice. I'm going to start following that plan.

I guess the biggest thing i'm afraid of is being sued.