Need some Good Advice??????

Bryan,

If I were in your shoes, I would try to work something out and avoid the chargeoffs. I was in a similar situation back in '96 and had two credit card accounts charge off. My credit is still screwed because not only do I have the original creditors listed, but I have collection agencies, inquiries and all in all a complete mess. All over two accounts. What you're suggesting is not as simple as you think. Plus, if you let them charge off, then you're opening yourself up to getting sued for the money. Then they'll ding your reports with a judgement.

Just my $0.02. If you can save your reports from going down the toilet, then by all means do whatever you can to keep that from happening. Trying to clean them up later is not very fun.

 

The settlement you may reach depends on how much they feel they can get out of you. If they see money in your bank account, they will see full settlement plus fees. So, putting the money in your bank account defeats the purpose of what you are attempting. You would have to hide it. Believe me, when they call you, they know as much about your financial circumstances as you do.

Second, you will still be stuck with bad notations on your report "charge off' - "settled for less than full amount", etc, all which will stay on for up to seven years, unless you can settle for deletion.

LIzardking did something similar - just stopped paying (at least I think it was him). Look for his posts on the subject. His worked out well. But you have to have a certain personality to pull it off.

 

Tell at lest 3 people about the board.Welcome here!

It may be called a system but a farce is a better term.
Actually it don't work.

 

Bryan,

If I were in your shoes, I would try to work something out and avoid the chargeoffs. I was in a similar situation back in '96 and had two credit card accounts charge off. My credit is still screwed because not only do I have the original creditors listed, but I have collection agencies, inquiries and all in all a complete mess. All over two accounts. What you're suggesting is not as simple as you think. Plus, if you let them charge off, then you're opening yourself up to getting sued for the money. Then they'll ding your reports with a judgement.

Just my $0.02. If you can save your reports from going down the toilet, then by all means do whatever you can to keep that from happening. Trying to clean them up later is not very fun.

 

If a "handfull" means 5 or 6, you might consider picking 1 or 2 with the lowest interest rate, and longest time to renewal.Get those caught up and kept current,or even paid off. Then if your situation doesn't improve you could do a bk and have some credit left.This assumes that you are "judgment proof".

 

Once upon a time I was this stupid. I thought if I just don't paid, I can make it up later. BullSh*t!!!

How much money do you really think you'll be saving?

Total C/O account AT YOUR NEW default APR of 29% times the number of months you don't pay. PLUS 5 months of Late Charges @ $35 dollar a piece. You now have gone over your limit so add 5 months of Over Limit Charges @ $29 dollar a piece. A $5000 account is now $7300+.

Not to mention.. paying for that non-listed phone number and caller id cuz you can't answer the phone anymore. What's the cost of a PO box now a days? You can't let them know there you live. Better tell the company receptist screen your calls cuz they will call you at work.

This "good" lawyer will want to be paid. What are you going to pay him with?

Where is this big savings? IF you're planning on repeating this pattern of behavior for the rest of your adult life maybe you should keep this "good" lawyer on retainer.

Get a part time job, ask mom and dad to raise your allowance, get a paper route. ANYTHING.

All you have to do is spend sometime reading this board. Every member has a horror story. I paid my debt, I too settled, but I can't get it to report correctly for the life of me. I have said it before, I should have gotten that second job, I should have talked to my creditors, explain myself. Now I am screwed. Just because you settle doesn't mean they won't report it. Don't be stupid.

and PS... Unless you're only form of income is Social Security or SSI NO ONE is Judgement Proof.

 

I agree that you shouldn't just stop paying them. If I were in your situation, barring the idea of being able to get 2nd or 3rd job or working more hours I would:

1. Stop paying the account with the highest minimum payment - and deal with that ONE account to clean up when I'm in better shape. I've never had a charge off but if I read these boards correctly the interest and penalty fees stop as soon as it's charged off so the sooner the better.

2. Continue to pay all others AT LEAST the minimum and more if possible AND always at least a week before the due date.

3. Work on getting the late pays for the accounts in item 2 which already have been dinged off my reports by any means possible including disputing them with the cra's, finding 'mistakes' which I could use as leverage, and even writing requests for 'goodwill' adjustments.

4. Also work on getting the interest rates lowered on all the accounts in item #2 in the interim.

The ONE "bad" account is SOOOOO much better than a host of bad ones, IMO...

anyone agree with me?

 

It is true there is no one (even those on s.s.) who are completely "judgment proof". However, some State's laws make it a better option than "settlement" or even BK.

 

Iâ??m sorry Mist I donâ??t agree with the stop paying the highest interest rate card and deal with it later. I would never, after everything that I have been through, suggest to anyone donâ??t pay. Basic personal finance 101 pay your highest interest rate card FIRST.

There is nothing wrong with getting a second job. I did it, when my DH was in real estate he delivered the WSJ at 4:00am just to ensure that he had money while waiting for all those commission checks. There is no shame.

Sock drawer your cards, pay cash, budget. Keep paying those minimum payments. Paying twice a month will help two fold, bring that debt down and help with negotiating getting those interest rates down.

Mist, as for a creditor stopping interest rates after a charge off not true. They can charge you late payment charges and if applicable over limit charges for 180 days. Thatâ??s five months. Read your credit card account agreement it will tell you what your default rate that will placed on your account.


Why Chatâ?¦ I thought that SS could not be garnished? Or is that only in civil judgments?

 

They CAN'T withhold any of your SS $$$$, but when it is put in your SAVINGS or CHECKING...IT'S FREE FOR THE TAKING...(so I was told)...with a COURT ORDER (JUDGMENT)...

 

So, if your SS is directly deposited in a mutual fund or CD is it touchable? If it untouchable couldnâ??t you do the same with a salary?

What if SS is your only form of income?

 

CALL SSA and ask...

 

How can that be?
Pat said you couldn't loose your money if it was in a F D I C insured bank!

 

It don't make no matter to them.

Hows that fer grammor

 

SS, civil service, military retirement, any sort of pension income is exempt from creditor seizure. Before they can seize anything, they must file a lawsuit and get a court order. All you do is appear with proof of the source of the income and the judge will rule against the plantiff.

 

I was not referring to garnishment in re s.s debtors in judgments. Nor was I referring to bank account seizures. Many older people are living in paid for homes, with paid for cars, and if they are in a State which does not exempt homesteads, they could wind up walking to the public housing.

 

I made the decision to just stop paying on my credit cards back in 95/96 - I was completely broke (matter of fact I still am). 7 years later - I am still trying to get my credit report clean and I have a long way to go. I have both original creditors and collections on my report. Plus creditors and CAs re-age accounts regularly, making it that much harder to fight them off even after you've done your full 7 year sentence. I even have a few that I offered full settlement for deletion - they won't budge. Believe me, it isn't as easy as it seems.

 

Desdemona,

I guess I didn't make myself clear and also I really had never dealt with a chargeoff which I stated so I wasn't sure if additional fees would acrue. Thank you for addressing that for the poster, myself, and others.

To clarify,

when I said "barring a second job" I meant if it was impossible as in the case of someone being needed at home SOME of the time for a child or elderly parent or some other reason such as personal medical. I absolutely think anyone who is physically able and won't tank something else in their life miserably by doing so should get a second job when they can't pay their bills. Bottom line, I agree with you, Desdemona, on this point.

Second point is that I didn't say stop paying on the "highest interest" card or obligation. I said on the one with the highest minimum payment. The reasoning being is that it has to be much better to have ONE account trashed than the whole portfolio. Withholding payment on ONE would allow a person to keep the other ones current and in good standing thereby reducing the battle to clean up when they are in better shape. This was actually advice I'm sure I've seen elsewhere by one of the 'gurus of finance'...Edelman, Suz Orsman(?) It's a desperation save of the 'majority' of accounts while sacrificing just one - the one with the biggest payment - which can be used to keep the others 'good'. Possibly down the line that ONE account with charge-off and report wrong or violate some FCRA or FDCPA code and settle for deletion. Part luck there but times 2, 3, 4, 5, 6 accounts? Not likely.

I agree with all of your advice regarding sock drawer for all the cards, budget, paying twice a month, etc. I gave the poster the benefit of the doubt that they had already done most of the 'austerity' living changes and were still falling backwards.

Mist