Paying off Collection Agencies

iVillage Member
Registered: 11-21-2004
Paying off Collection Agencies
2
Sun, 12-19-2004 - 5:58pm

I am needing some advice. I am a 22 year old college student with about $16,000 worth of credit card debt. I go school full-time and work part-time in the state of IN. My take home pay after taxes is $600/month. I have to pay for rent $275, electric $78, cable $10.60, and phone $45, gas for car $80/month, and food. I get back some loan money from school each semester. Last semester I recieved about $3000. I took the money and bought school books, paid my rent from Aug to Dec, paid a backed up cell phone bill $248. I took the leftover money and put in my bank account and used it to pay my other bills and expenses. I had to do a internship this semster of 120 hours so my hours at work went from 25 to 10 taking my paycheck down from $150/wk to $60/wk. Major ouch! I have went to an atty and talked about bankruptcy. He said that he would accept a payment plan so I paid him $50 that day to retain him for a chapter 7. I don't want to file bk. I have checked into several debt settlement and management companies that I was refered to but they wanted too much money- like $400/month. Almost all of my credit cards are in collections and have been charged off. They are all closed accounts and I am not using any of them. I purchased Dave Ramsey's book Total Money Makeover. I am not completly through with it but he talks about not filing bk. I know I haven't finished the whole book but it makes me feel like there might possibly be some hope for me that I can pay off this debt on my own. My problem is that I am mainly dealing with collection agencies and I don't know if I can work out a payment plan with and how much more time I have left-if I decide against bk to pay them before they sue me. I hate to file bk because I will be done with school in about a year and a half and my income will increase a lot more. If I decide to try and pay my creditors does anyone have suggestions on who I should pay-the orginal creditor or the collection agency? I have heard the original creditor but I want to be sure. If anyone any suggestions please let me know!! I have 12 cedit cards and here is the list of my debt:

1. Capitol One : $1563.00- charge off
2. Capitol One: $1419.00- 180 days late
3. Citicards: $4271.00- charge off
4. Citicards: 985.00- charge off
5. Citicards: $289.00- 150 days late
6. Citicards: $807.00- late 150 days
7. Dell: $1448.00-charge off
8. Household bank: $1121.00- charge off
9. US bank: $1640.00- charge-off
10.Wal-Mart: $407.00- late 180 days
11. WFNNB/Maurices: $1373.00- charge off
12. Zales: $1320.00- charge off

Avatar for sohappilyme
iVillage Member
Registered: 03-26-2003
Mon, 12-20-2004 - 10:30am

I'm unfortunately experienced in this particular area!

Sarah
iVillage Member
Registered: 11-21-2004
Mon, 12-20-2004 - 8:56pm
Thanks for your advice. I am trying to find a second job so i'll have extra income and start trying to pay off this debt! It makes me feel better knowing that they willhopefully be flexible with the amount owed. Thanks again!