Terrible Situation

iVillage Member
Registered: 09-09-2009
Terrible Situation
5
Wed, 09-09-2009 - 9:38pm
Ok. Here's my sob story. I am 23 y/o. Married for almost 2 years. Before the wedding in 2007, had decent credit. A little credit card debt, but decided to take out a personal loan at a lower rate and pay it all off. The smart idea I had sounded good until I took the loan out, paid the cards off, but decided to keep them. I racked all of them up to their maxes, and then struggled paying minimums on them on top of my loan payment. To make a long story short, after the wedding, felt trapped, couldn't even make minimums, and debt piled up. Tried a debt negotiation firm, paid off a few small cards, and then they fell through. I have decided to start from scratch and try to pay everything off the old fashioned way. I am so nervous to call all of these collections companies and credit card companies. It needs to be done, but in all, we have about $20,000 in credit card and loan debt. Where do I start?!?!
Brianna p
iVillage Member
Registered: 08-04-2008
Wed, 09-09-2009 - 11:12pm

You already started - huggggsss!


So next, you make a list of all your monthly




iVillage Member
Registered: 09-09-2009
Thu, 09-10-2009 - 8:52am
Well, that sounds like a good start, but my problem is, since I've been in this debt negotiation plan for over a year, I've stopped receiving statements for all of these accounts. Most of them are in collections by now. I do have most of the numbers to the agencies they are through, but I have no idea what a "minimum balance" would be. They are no longer with the actual original companies.
Brianna p
Brianna p
iVillage Member
Registered: 04-10-2003
Thu, 09-10-2009 - 9:01am

If they are with the collection agencies then I would do as Marie suggested with a twist.


Take all your expenses (housing, utilities, food, savings for emergencies etc, living) and see how much you have left over. The can be your debt repayment money.


Once you have a general idea of what you can reasonably put towards debt, call each company and make a "settlement" offer. Suggest you can pay off x dollars a month for so many months after which point the debt is settled. Get it in writing. If they don't agree, you can tell them its this or bankruptcy where they get nothing (I'm not saying you should declare BK, but you can threaten). Collection agencies buy debt for pennies on the dollar so they are likely to accept what you can give them.


Don't let them bully you into more then you can afford to pay.


Good luck and let us know how it goes!


Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."


Bex -

iVillage Member
Registered: 08-04-2008
Thu, 09-10-2009 - 4:05pm

This is exactly why these debt settlement companies don't work.




iVillage Member
Registered: 10-01-2008
Thu, 09-10-2009 - 4:23pm

I agree totally with Bex & Marie.

Norma


"Patience is the best remedy for every trouble"- Plautus