My credit score has tanked. I was out of work for 6 months and unable to pay on credit cards and loans. All of which add up to about 30,000. Of course they have been calling but I have not answered any calls due to the fact of not being able to make promises to pay that I can't keep. Some have gone to CA's but some haven't. I've lost a fiance and my house throughout this ordeal and am totally overwhelmed here. Did not lose the house because of default though. I am in a posistion to start repaying some, but just wondering if bankruptcy should be an option for me. Or should I call all creditors and try to negotiate. Or credit counsiling. Please help a very depressed Virginian if you will
Are you now working, and are you working at near your current income earning capacity? (Not "underemployed", in which case perhaps your main focus should be on finding an opportunity to boost your income.) Under these conditions, how long will it take to pay off your debt?
You might want to write down how much money you have to pay toward some of this....make that your "bank". Then make a list of all the debts which are still with the original creditors, and haven't gone to the CA. Scrutinize the bill before you call. Tally up the late fees, over limit fees etc. Then ask them for some sort of payment arrangement which would include them waiving some of those fees. CAs...just throw the standard 1-2 punch at them. Demand validation, then dispute it on your credit. If they verify it before they produce validation, Intent to Sue letter along with a draft of the complaint you intend to file in Fed.
