Debt Journey
Date: Mon, 06/28/2010 - 10:18
I began the year with the following amount of debt:
B of A (3 a/c) $51 K
AMEX $13 K
Discover $10K
Citi $6K
Chase $6K
Student Loans $40K
Every month was minimums and strategically paying different debt at different times of the month or if allowable balance transfers back and forth. Then my credit lines were reduced igniting rate increases across the board to a point where I could not even reasonably make the minimums. (Debt accumulated due to business failure and overly optimistic idea that grad school will bring more money than debt). Nearly all CC offered some kind of limited hardship program but when the interest rates went back it was extremely difficult to stay afloat having to choose between eating and paying interest rate.
Last December I made decision that changed my life with the help of this forum and stopped paying on all cards with balances above $10K. Numerous phone calls and learning odd ways of different banks calculating days late, I received following settlement offers and I have finally made my last payment:
AMEX 65%
B of A 25%
Discover 70%
Remaining balance for CC = less than $10K
I know many others on the forum have received better settlement rates and I do wish I followed advice sooner but to go from $85 K cc debt to $10K in one year has finally allowed me to breathe.
All that remains is stressful short sale on underwater property and student loans (which are impossible to settle without bankruptcy). I know that I will receive 1099's but I will post more when I come to that particular bridge.
I wanted to let those out there know that there is hope. You can do this yourself (make sure you have enough money to settle). And this is really a great forum.
Congratulations and thanks for the update. Keep posting and shar
Congratulations and thanks for the update. Keep posting and share your experience here. It will help those who are trying to get out of debt. Also you can earn dollars just by helping others with advice.
Jason
Great job! I am also amazed at the stupidity of the cc companie
Great job! I am also amazed at the stupidity of the cc companies. The raise the rates and triple the payments and then want to know why you can't pay them. That is also what happened to me. They would have been paid in full if they had simply left the interest rate and minimum payments where they were. Even though my income had dropped 70% I could have made the payments. But once they increased I was sunk. It was either bk or settle. I settled and made my last settlement payments last week. I only have one hold out and that is cap one which charged off 4/7 and is still in house with them.
I wouldn't worry too much about the 1099s - I'd bet dollars to donuts that you were insolvent and won't actually owe any taxes - just a little higher accountant bill to file the proper paperwork.
