Due to my husband having to take a major cut in pay and putting living expenses on our credit cards and then also getting behind in payments we have racked up close to 40,000 in credit card debt. He has had a small increase in pay now. I have talked with CCCS but cannot afford thier program. I don't want to pay thousands of dollars to a debt settlement company (I have talked with a couple). We are about 4 months behind in all the payments. It works out to approx. 9 cards with about 4000 each on them. I have worked out hardship plans with a couple and am going to call a couple more in the next week. The problem is everyone is wanting about a 200 payment to get things started with hardship and I can't afford that all at once so I am trying to spread it all out. The problem is I am afraid some of these will get charged off before i can get a payment to them. Is there a way to delay the charge off? If I contact them and let them know I intend to pay will that help? Or if I send in less then they want? I am also wondering what would happen if I let a couple go to collections and then just deal with them down the road when I have things more stable financially. Of course the last option is bk which I am trying to avoid if at all possible. The creditors I am dealing with are household (2 accts)(have been great to deal with so far) providian (2 accts) (wamu) chase mbna (BOA) capital one (3 accts)(almost impossible to deal with)
Don't go the Debt Settlement Co. route. We've been in a program for almost a year. Even though they've settled one, and one cc co is waiting, we are in arbitration on one, going to court on Monday for another and one keeps threatening, but has not made a legal move yet. We are staying in it only because we've paid our fees. They are reputable, but NEVER did I realize that we'd have to go through all of this. My cousin did debt settlement with a LAWYER, though -- which is the way I wish we would have gone. Our payment is 40% of what our debt was and then we have paid them 14% of what was owed. So, it depends on how you look at it. We panicked, which was the wrong thing to do. Do your research and decide what is best for you. It's scary, I know!
Thanks for your reply! I almost went with a debt settlement co about month ago, something told me not to though and I started researching and so far have yet to find someone who has gone with one and worked it all the way to the end of the program and was happy with it. I'm sorry to hear about your situation. I think I am just going to work out hardship plans with the ones I can and if they go to CA try to settle the best I can and if it all gets out of control then go with bk. But even if they do haul us into court I guess thats still better then bk.
