Request for Help
Date: Mon, 11/29/2010 - 09:23
Chase: $14,527
Amex: $3,923
Choice: $15,074 (already negotiated $320 monthly pmts on this one unfortunatly, before I found this site)
Capital One: $5,723
I am current but only make min payments and have has such a drop of income this year (I am a 1099 employee),that my current situation is that I will already have to file an extension for 2010 taxes as I did not withhold for 2010, so come 4/15 I will be a few months short, so will have to extend. If I continue to pay mins on these its over $1200 a month I could put towards taxes if I stop paying.
My credit up to now has been excellent, but I am not worried about it being hurt. This is a vicious cycle I need to escape from though....
Any advice on how to proceed as of today's situation would be appreciated. Should I just stop paying immediatly and if I understand, wait for the 4 credit card companies to begin calling, explain my situation and begin negotiating at that point? What % should I aim for? etc. How long do I hold out? How long until they call etc. Any help would be appreciated.
How much are you paying Chase, Amex and Cap1 per month for your
How much are you paying Chase, Amex and Cap1 per month for your minimum payments?
You need to give us the answer of the question put by OhioGal1.
You need to give us the answer of the question put by OhioGal1. Just to let you know, if you stop payments, then you will have to be delinquent for at least 90-120 days to get good settlement offers from your creditors. But be careful as it will depend solely on the creditors. Some creditors might not settle and try to sue you.
The percentage of settlement depends on how you can negotiate. A general rule is to start your offer from about 20% of your debt amount.
OK, so - according to your post above, you are paying $1200/mont
OK, so - according to your post above, you are paying $1200/monthly by paying the minimums. The amounts you've listed only add up to about $900 per month. What's the other $300?
If you could save around $900 per month by not making further payments (except to Choice, for now), you may be able to settle at 90 days (with your $2700 you'd have saved) with Cap1. You'd then be saving an additional $1100ish per month and could settle with Amex at 120 days with that money. At that point you'd be saving $1300ish per month and could start working on Chase. My concern is that your Chase balance is pretty high and you may not have enough money for a settlement prior to charge off. You could still settle with a CA if it does get charged off but, it all depends on how you want to handle it. Once you've paid off the 3, you can then stop paying Choice and settle that one.
OhioGal offers a great solution there! Wish mine was so easy lol
OhioGal offers a great solution there! Wish mine was so easy lol.
