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90 days past due cr card now.

Date: Sat, 03/30/2013 - 09:00
Submitted by cinderalla on Sat, 03/30/2013 - 09:00
Posts: 13
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I'm at the 90 day mark with my creditors. I had a debt management program (DMP) that I had to stop paying because my daughter was defaulting on student loans that I cosigned. I'm now paying Sallie Mae and not the DMP. I have a Sears card that I'm paying on and I have a PNC bank card that I'm paying because they gave me 4%. Also 2 cards that are under $500, and I'm trying to pay them off. I have an open Bank of America visa that I'm also using and paying limit is $3000.

I read that creditors negotiate after 90 days, but what I read on this forum looks like 180 is the norm. I'm looking for a strategy to get the high balance cards settled at a lower percentage.

Should I pay off the low balance cards and let the high cards go longer and negotiate them together? I was also told that I should get any liquid assets out of my name because the card companies can see my bank accounts.

In talking to Discover they said they could not settle because they were bound by the debt management program agreement. However, the credit card counseling company terminated my contract, when I stopped paying them. Please tell me how to negotiate this situation.


I talked to a bankruptcy atty, and they said Sallie Mae does have that power. that is why I'm paying them and not my own debt management program bills. I work and don't qualify for Chapt 7. Would have to file chapt 13 and repay everything anyway including Sallie Mae.


Submitted by on Wed, 04/03/2013 - 08:06

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Yes, I agree should not touch them. I am concerned about the Creditors seeing that I have the 401K asset. Would the existance of my 401K asset hamper my negotiations? I don't have a lot in it, but I want to keep it there.

I hope that my daughter will get on her feet and be able to pay her student loans in time, but I am on the hook for now. I should not have to sacrifice my retirement fund, and I am paying the money on her loan for now. I did cosign and Sallie Mae can take my tax return and my 401K. They have that power. That's why I figure I'm better off trying to settle my large card balances. My credit is damaged already from the missed payments to Salle Mae.


Submitted by cinderalla on Tue, 04/02/2013 - 18:07

cinderalla

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Your sallie mae loan is a private loan...they do NOT have the power to touch either your tax return or your 401k. In fact, no one really knows about it unless you tell them about it!!!


Submitted by SOAPLADY on Tue, 04/02/2013 - 19:02

SOAPLADY

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You should inform Discover that the contract is not valid anymore and you would like to settle the debt. You can start negotiating from now onwards. In my opinion, you should try to pay off the cards with highest balances first. Yes, it is best to get your liquid assets out of your name asap.


Submitted by on Sun, 03/31/2013 - 22:33

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Thanks for the reply. I have a 401k. A creditor asked me to withdraw money from that to pay them. I can't put that in someone else name. How should I handle that request?


Submitted by cinderalla on Mon, 04/01/2013 - 08:25

cinderalla

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Generally it isn't a wise idea to withdraw from your 401(K). Now if you've got a regular source of income, then you might as well make use of that instead of your 401(K). That should be your last option practically.


Submitted by Sanders Patricia on Mon, 04/01/2013 - 09:31

Sanders Patricia

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I read that creditors can tell how much assets you have and to they can try to strong arm you into settling at a higher number. Also Key said they would send me a settlement package in the mail. What is that? What should I expect?


Submitted by cinderalla on Sat, 04/13/2013 - 10:16

cinderalla

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