Here is the low down... My parents are in debt, together they make $102k a year. Not counting Credit Card debt, they have $2800 in reocurring bills a month. This includes rent, cable, phone, car payment, sister's car payment, sister's insurance, utilities, insurance, life insurance, cell phone. Not o****ing the reoccuring bills: 1) my mom owes $7,163 in credit card debt 2) my dad owes $1,421.94 in credit card debt 3) my dad owes $11,751 to a collection agency for a credit card... and $3.011.55 to a collection agency for an overdue cell phone bill (sister ran it up over 4 months and $1400 in late fees). I set up a payment plan where they would have to pay $765 a month for a year to pay off their credit cards. As for the 2 things in collection, I called the companies and they told me to make an offer for a settlement. What should I offer? Do they want a payment in full when a settlement is reached, or could i pay it over a few months.? They don't own a house, so i am not sure if they could get a debt consolidation loan. could they? The only thing they own is my 97 Grand Am, which is worth about $4000.
They will not get a bill consolidation loan to pay of collecton debts. When bargaining, the first one to quote a figure loses. Ask the collection agency to make a proposal and then try to negotiate it down further to something you can honestly handle. Whether you pay in a lump sum or installments, get something in writing confirming that they will delete the collection account from the credit report after the settlement is paid.
why are your parents paying your sisters bills? if they can't afford their own they shouldn't be paying hers? whats the deal?
Some stupid questions: 1. Your parents make about $102K a year. They pay $2800 a month in expenses. Figure 1/3 of the gross for taxes ($34000) and $33600 for the living expenses totals $67600 a year. What happens to the rest? 2. Your parents make $102K a year, which is $8500 a month. After taxes and expenses they should have about $2800 left over. With taht amount they could pay these debts in no time - none of them is large in relation to their income. If they pulled in their belts they could have it all paid off in less thana year. 3. When you negotiate a settlement, everything is negotiable - EVERYTHING.
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