Settlement, management or consolidation
Date: Thu, 04/01/2010 - 14:23
Hi,
I have been reading all these options here as well as some other forums. I really like this site the best, I am glad I found it and hope someone will help me tackle my problems and find the right solution.
After all the reading I think settlement is the best option for me but not sure.
I have 4 credit cards, Chase, Citi and B of A. 2 are with Citi. Total debt on them is 87k.
I have had them all for about 15 years. I have always only used one of the cards and the rest I just use for balance transfers.
I always paid a few hundred over the minimum on each and they were set up on auto-pay from my checking so I never thought about them, out of sight, out of mind.
Last summer they were around 60k and all of a sudden I had a balance transfer expire and interest went to 29%, the other one they dropped my available credit and also went to 29%. That was Citi.
Then Chase went to 29% and as I have seen on some other forums Chase doubled the minimum due percentage so I was paying $500 and it became $1000.
Before all this my minimums were about $1500 but I always paid about $3000.
It all began to snowball and I was robbing Peter to pay Paul and now with my reduced hours and pay I can only afford $1500 towards CC but now my minimums would be $4000.
I missed my first pymt. about 2 weeks ago on one Citi card.
Because I am 53 yrs old and have some health issues plus know that I am going to be laid off later in the year I am thinking settlement is the answer for me, try to pay these off now while I can.
I understand from reading I need to be close to or at charge off and save some money in order to try to settle.
My main question and concern will be how to time this just right so I am not sued but also I do have another option and wonder if they can force me to use it? I have 2 houses, one I just got and so no equity in it but the other one has about 20k equity. I don't want to sell it because I have good tenants in it who pay more than the mortgage but I really don't want to take the equity out either because of my impending health situation and age and I know I will need it. If my debt was under 50k I would but it is so high I want to try to settle for half.
I would appreciate if anyone knows if they can force me to sell second house?
Also, can I 'settle' with 3 of the 4 and keep one credit card open and pay it just like normal every month. I ask this because on another forum I read about universal debt or universal something and I gather this is where if you are late on one then all of them punish you?
Is it best for me to close the cards myself or just wait for them to close them?
Thank you so much for all your help,
Kaylee
I have been reading all these options here as well as some other forums. I really like this site the best, I am glad I found it and hope someone will help me tackle my problems and find the right solution.
After all the reading I think settlement is the best option for me but not sure.
I have 4 credit cards, Chase, Citi and B of A. 2 are with Citi. Total debt on them is 87k.
I have had them all for about 15 years. I have always only used one of the cards and the rest I just use for balance transfers.
I always paid a few hundred over the minimum on each and they were set up on auto-pay from my checking so I never thought about them, out of sight, out of mind.
Last summer they were around 60k and all of a sudden I had a balance transfer expire and interest went to 29%, the other one they dropped my available credit and also went to 29%. That was Citi.
Then Chase went to 29% and as I have seen on some other forums Chase doubled the minimum due percentage so I was paying $500 and it became $1000.
Before all this my minimums were about $1500 but I always paid about $3000.
It all began to snowball and I was robbing Peter to pay Paul and now with my reduced hours and pay I can only afford $1500 towards CC but now my minimums would be $4000.
I missed my first pymt. about 2 weeks ago on one Citi card.
Because I am 53 yrs old and have some health issues plus know that I am going to be laid off later in the year I am thinking settlement is the answer for me, try to pay these off now while I can.
I understand from reading I need to be close to or at charge off and save some money in order to try to settle.
My main question and concern will be how to time this just right so I am not sued but also I do have another option and wonder if they can force me to use it? I have 2 houses, one I just got and so no equity in it but the other one has about 20k equity. I don't want to sell it because I have good tenants in it who pay more than the mortgage but I really don't want to take the equity out either because of my impending health situation and age and I know I will need it. If my debt was under 50k I would but it is so high I want to try to settle for half.
I would appreciate if anyone knows if they can force me to sell second house?
Also, can I 'settle' with 3 of the 4 and keep one credit card open and pay it just like normal every month. I ask this because on another forum I read about universal debt or universal something and I gather this is where if you are late on one then all of them punish you?
Is it best for me to close the cards myself or just wait for them to close them?
Thank you so much for all your help,
Kaylee
I am sorry but somehow when I was previewing my previous post I
I am sorry but somehow when I was previewing my previous post I accidentally deleted an important paragraph.
Last summer when the snowball thing began with my interest rates rising, I also was laid off for 3 months. I got rehired but at a paycut of $12 per hour plus no overtime and before I had had a lot of overtime. So that is why I did pay $3000 per month on my CC and now can only afford $1500.
thanks again
