Debt Management/Settlement
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| Wed, 04-15-2009 - 3:27pm |
Hi, new here and have a question for the "been there done that". I am very much in credit card debt and need to start working on getting it paid off and from looming over my head. We are talking 5 figure debt that has accumulated over a 20+ year span of time. I am married with two girls 6 and 10 years old. I have worked at my job almost 25 years and get paid ok but we have not received raises in over 8 years, with lots of lay offs in between. My husband was laid off from my place of employment 5 years ago, had a few temp jobs but then got a decent union job three years ago, but now its looking like this job is in jeopardy(auto industry). If he loses his job I believe we will be in serious bill paying trouble, so I need to do something with my cc debt. Has anyone taken the debt settlement approach, which is what I am leaning towards even though it will effect my credit, but so will not paying my bills so does it matter? I'd rather clean things up now before my girls get to old. I feel the debt management may not be an option if he loses his job, only answer is settlement. Thats my only option before I'd have to consider bankruptcy, which is where I don't want to go.
so has anyone gone either route, if so can you recommend a consolidation company and any pros and cons.

Hey, welcome... I know one of these women will come along with a personalized answer for you, but check this out in the mean time (really good answers to similar issue!!):
-Kels
Like you, I had accumulated a large 5 figure credit card debt over several years.
Norma
"Patience is the best remedy for every trouble"- Plautus
I think if you read the posting that kel sent you That will pretty much tell you how these people work.
I firmly believe with a little education of how your credit card figure interest on the month, cutting back on things around the house even having a spring yard sale to get you started that you can do it on your own. There are a lot of fees in these place Abby knows that more then most. CCCS are good if they are non-profit but there are aways a fee with them also. Instead of giving someone you can save that amount of money and do it yourself.
Get on a real tight budget. Call up homeowners, car insurance to see if you can get discounts. Make a list of your bills and the interest rate and balance and closing date.
Hi Norma,
(and anyone else that has any in put...all welcomed)
I have backed out on two settlement companies that I was thinking about enrolling in their programs. I am now contemplating using CCCS. The one that lowers your interest rates and payments. My last resort would be bankruptcy. My situation seems similar to yours and I would like to discuss alittle bit about how bankruptcy worked for you. Here is my situation:
I don't think my situation would be the same, because your are separated from your husband.
Norma
"Patience is the best remedy for every trouble"- Plautus
Thanks Norma,
Please read another post on the board about using a debt settlement company.
Norma
"Patience is the best remedy for every trouble"- Plautus
thank you to all who have responded...how ironic another Karen is is experiencing similar issues, like looking in a mirror almost...must be in the name(wink wink). I knew from the beginning of talking with these companies something in the pit of my stomach just didn't feel right, seemed too good except for the bad credit thingy. okay so now my question becomes, if it comes down to it and I can't pay a bill, what bill do I not pay? credit card correct? another scarey thing this debt settlement company told me was that alot of these cc companies are raising their interest whether you pay on time or not. also for bankruptcy...at what point do you say to yourself I have to do it, I have no choice? are you in your own home or renting? I feel like such a bad person for getting myself to this point.