Please help loss of income 65K to 40K some credit cards 2-3 months late. Discover and Chase offering settlements of 50% how do I settle if I don't have the money or do I just wait till I get it together? Do I talk to them? How much time to they usually give you before they give it to collections? What happens when it goes to collections? Can I still settle later? Do I take their hardship plans for one year? What happens after the first year when payments and % go back up? Will they extend. HELP I don't know what to do!!!!!!!!!!!!!!!! Thanks, Cheryl
First of all relax and take a deep breath. I know that you must be stressed with the drastic change in income and you are definitely not alone in your circumstances....the economy is not as rosy as the papers and media report...many people are in your exact situation. <Please help loss of income 65K to 40K some credit cards 2-3 months late.> About how much do you currently owe on each card - please dont give exact amounts or directly name the creditor on this post. <Discover and Chase offering settlements of 50% how do I settle if I don't have the money or do I just wait till I get it together?> As the cards come closer to charge-off and they see that you either do not intend to pay or can't pay, you will see offers in the 30% range. Your question is rhetorical....if you dont have the money...you cant very well pay now can you? They can't bleed a turnip, although they try to make you think that they can. <Do I talk to them?> You can if you like, however, from much personal experience I found that there was no reasoning on their end...they want you to take out a loan etc. to pay them, put you on an emergency program, etc. that only racks up your account with more finance charges and digs your hole deeper. Once again, if you dont have the funds, you dont have the funds.....don't do anything stupid to pay an unsecured credit card if you simply dont have it. < How much time to they usually give you before they give it to collections?> 180 days before charge-off. <What happens when it goes to collections?> You will start getting demands for payment either phone or mail or both....the harassment will increase more than you are experiencing now.....my advice if you get to this point...dont answer the phone and if you get anything in the mail...send validation letters (search this board for that). <Can I still settle later?> Of course you can, you can settle at any point that you wish....lets say when you get your income situation back on track. All they want is the money...and they will negotiate. <Do I take their hardship plans for one year?> This is a personal decision....what you have to figure out is how much more interest will you have accrued and can you really say for sure that your income situation is going to improve back to the point that it once was....the hard cold fact about this is....if your situation is not likely to improve...charge-off may be the best option. <What happens after the first year when payments and % go back up? Will they extend.> Once again, consider the financial downfall with this option...after a year and your income is still at the same place, what are you going to do?
I've been talking to them. I'm not ignoring them just telling them "loss of income, we're sorting out our options. No, sorry can't make a payment today. Good bye." We owe around 50K in credit cards. 2 chase, 2 discover, 2 MBNA I called one of the CCC services and they suggested Bankruptcy because the income is gone after the secured debts are paid. The one car note, mortgage, student loans and utilities. Don't have enough equity in our home to settle. Texas is an 80% state. House is valued at 150K and owe 110K I have a sole proprietorship small business (2 years old) not showing a profit yet but not loosing money either. I've laid off my only employee and am working 12-16 hours a day trying to get ahead. Really don't want to file BK because I've read new employers are using it before hiring. Is this the time where I send validation letters that I've read about as well as the contact me only by US mail? Am I in the wrong type of forum? Mostly what I've read here is credit repair. I've read about being sued etc and that really scares me. We would be totally humiliated if either of us were "served" on our jobs. Can anyone tell me what the chronological order usually is. Sorry if I'm being annoying I'm a newbie. Help Thanks Cheryl From Texas I promise to return the favors when I am no longer a newbie.
Hi Cheryl YES...you are definitely in the right forum and I am glad to see you reply after I answered your first post. I know that you are going through some very difficult times and you should just understand that many people on here have gone through and are going through similar circumstances. You do have quite a bit of credit card debt, but I have seen people on here with much more. You have been talking to the companies I see and can imagine that you are getting nowhere with them understanding your situation or offering sympathy. This is typical and won't change. They are not there to help you. You must make the decision as to whether you are going to file for bk (which I dont recommend) or just stop paying. Read the following for additional insight. http://ccdeadbeat.blogspot.com/ One thing that you should know....living in Texas....is a definite advantage versus many other states....just about everything is protected from creditors. I would imagine that you will find the chances of you being sued here next to none <smile>. At this point, are the credit cards charged off? This is going to sound different....but at this point the best thing to do (assuming that you dont bk) is to not answer the phones, stop paying the bills, get a recorder and caller id, let it ring, and answer any letters in the mail from CA's with the validation letter. If the OC still has the account, they will eventually offer around 30% to settle right before charge off...but as I said in my first reply...if you dont have it...what good is that? Until your financial situation improves, going underground and waiting for the SOL to expire is your best bet. You will be harrassed terribly...and you will just have to get used to creditors calling every day...several times....eventually they give up and give the account to someone else....eventually...they just give up..but it may take a long time....just get used to not answering your phone. Don't fall for CCCS or MMI..remember...if you dont have the money...how can they make you pay? Stay with this forum and let us know how you are doing and any other questions that you have.
One other thing....NEVER NEVER NEVER ever consider using equity in your home to settle....especially in Texas.....why in the world would you EVER consider using secured assets to settle unsecured debts???
Thanks so much for the blog site. I've been reading it. SOOOO much useful info. I took an offer on the phone from one cc company to pay 0 interest for 5 years. The payment is 90 dollars. Should I quit paying this too? I thought it was a very fair offer. MBNA called and said they had my bank info would I like to make a payment to catch up I said no. Gave them the same spill. No Money looking at my options. Do I need to change bank accounts now? Can they get money without my permission? Anything they got would leave me nothing to pay mortgage and utilities. Should I send them all a do not call me or my husband at work letter now? I know I have to send this to the OC's but it looks like I'll have to send it to each new CA once it's been sold. And am I right in reading they keep passing it to a new CA and I'll have to send the new CA the same no phone calls at work or only contact by mail letter? My last concern is if they start harrassing my elderly parents or friends we may have put on our credit application on the famous referral line.
I would change your bank info. I've heard Clark Howard say that if they have your info they will take money out without your permission. One of my old CC places had my checking # but they never actually did anything with it. I finally took a 50% offer to pay it off. Feels good not getting calls all day long from them.
