My situation/advice please
I have one health care bill that is quickly going up as its for medical equipment I use still. And then the dreaded 3 payday loans I took out because I was in such a jam when I was not working. (they give those when you collect unemployment can you imagine!!!) I am in the process of complaining to the AG in my state as there are some tough anti predatory lending laws here in NC re those loans. However if I combine some small (under 100) bills and the others I mentioned I have 3,000 in debt. That only includes one student loan the other I have budgeted out and will start paying this coming month. This 3,000 is a bulk of taxes, student loans and then some very small stuff that accumulated while I was not working and the medical equipment bill. (it does not include the payday loans for now waiting for atty general to help me with the laws in my state) I have about 200-225 a month that I can use to pay these bills. In the coming months I see that figure increasing a bit as there will be an opportunity to work overtime and a pay increase. (3-6 months down the road)
Ok so first I would like to settle the debt for lower if I can and I have read a bit on the forum and see that its possible. I am wondering how negotiable creditors are of this settlement with payment scenario I have read about. See I would like to begin paying the big bills each month and slowly settleing the lower ones. Then I can ease up cash and offer settlements to the bigger ones when I have more cash to spread around. I would like to have this debt paid in full within 8-12 months. I figured if I was paying faithfully to the larger for a few months and then offered the settlement i would have a better chance? Or am I wrong?
Where should I start....any suggestions??? I have read of the letters to send out re settlement and my fear is they will settle with me all at once and I will not have the money. What sort of time frame do I have? should I only do a few at a time? Is it even worth trying to settle a very old debt under 100?
Lots of questions and rambling here hopefully someone can make sense of it! :)
Nicole
Hi and welcome! First off, is your tax debt federal or state? B
Hi and welcome!
First off, is your tax debt federal or state? Based on my own experience, I know that the IRS can be more forgiving than states many times.
If it's a federal debt, I would write the IRS via your local service center proposing a payment plan that is affordable for you, if you agree you owe the debt. Based on the amount of the debt (which the IRS doesn't consider large), chances are they probably would accept it. Bear in mind that interest will keep acruing until it's paid off, however.
If this is a state liability, I would contact them to work out some sort of arrangement. Good luck!
Its a state debt and I have filed some paperwork to get the info
Its a state debt and I have filed some paperwork to get the info on it so that I can be sure its mine. It probably is true though and that was really just to delay things a wee bit. I filed this in the wrong forum though! :( I am gonna repost! OPPSIE
I owe the federal irs a little of $1000, they were really good a
I owe the federal irs a little of $1000, they were really good about setting up a payment arrangement that worked for me monthly. I know they will take my income tax this year also, but I don't mind if it is coming off the debt.
I was really concerned about it at first because normally I file my taxes correctly when I do the online forms, for some reason I did not get some documentation in the mail to file and still to this have not gotten it, just started the bill. I did not want to question it, it was from a site that I play on and did not realize that they do report to the irs, I know better now. Thing is they never requested my social security number or any other identification when I went on the site and played, so I don't know how they made the connection, anyone have a clue?