Need some advice on credit card debt.

[dolphin]

I've been riding the credit card express for about 5 years now and it's just not getting better.

1.One credit card is charged off and then paid off after an offer.
2.One credit card is charged off and is in the hands of a collection agency who just sent me an offer to payoff at 50% of the balance. (Would love to do this but don't have the money.)
3.Two credit cards are closed/maybe charged off but I'm still making payments through a debt program that they set up for the last 3 years. Only problem is, the only way to be in their debt program is to set up postdated automatic checking account payments (I tell them I can only afford $50.00 but they decide they can only accept $150 or more per month so I always agree to it) for 4 to 6 months at a time. It's always more than I can afford to pay (usually around $225.00 a month for each card) and although the interest and late fees stop, I can't afford the payments and and end up not renewing right away or the payment bounces which causes the fees and interest to start up again making my payments fruitless! They have of course used every scare tactic imaginable and been relentless with 10 or so phone calls per day when I'm not on the plan. The calls begin promptly at 8:00 am and don't end until 9:00 pm 7 days a week.

I am set up with one of these payment plans with only one company right now as I have eluded the other one. It will be hitting my bank account in 2 weeks and I just can't see how I can continue to make my house payments and get caught up on bills like my trash bill if I continue to pay them. Only thing I can think to do is call and cancel the payment and then stop paying them altogether. Of course this would then send them to the collection agency so someone else would be calling me. Ugh!

So when everyone says you should only worry about your esential household bills first, what do you do about the credit card companies and other collection agency companies that won't stop calling and sending threatening letters?

[Cele]

We don't carry cc debt, so I'm not sure how much this will help. I *thought* there were non-profit credit counseling programs that consolidated debt to a set monthly payment. You get your debt paid, no collections calls, and you learn to live without credit cards. In your situation that sounds like a darn good deal. Is there some reason you haven't done this?

That whole post-dated different amount all the time sounds fishy to me. I'd proceed with great caution. Have you sought professional legal and/or financial advice?

Good luck...regardless of the route, you've got some work ahead of you.

[Drgnfly423]

I also don't have credit card debt, but I do listen to Clark Howard. Here is a link to an article on his website about credit counseling services.


http://clarkhoward.com/shownotes/category/6/23/169/

Good Luck and I'll be thinking of you.

[nodmicks]

Dolphin send them a cease and desist letter by registerd mail. Then they can no longer call and harass you.
I definately wouldn't let thm do auto payments you can't afford. Draw a list of the utmost necessary expenses
shelter
food
lights
transportation costs
debt 1
debt 2
debt 3 etc

When you get paid pay right on down your priority list(order of importance). When you run out of $ draw a line. Those folks under the line simply don't get paid that time.
Since you have sent the cease and desist letter they can not legally call and harass you. Yes you can get mail from the collection agency etc but they really cant do anything but send threatening letters.
I know it is a huge stress but you will presevere.
When I married Dh and the announcement was in the paper I got calls at ork from collections. I was furious!! We spent the 1st few yrs cleanning his mess up doing the above. . Besides paying these off years ago we in the last few years payed of over 16K in cc debt. It takes time but is so so rewarding!
Best of luck!

[dolphin]

Thank you for the link Miranda. I was able to find an agency that does online and phone counseling since there is not one close to my area. The reason I have not attempted to even call them is because my Mortgage company frowns if you even contact one of these companies. They will deny any alternative payment plan if you are behind in payments if you have contacted the consumer credit counseling companies let alone actually use one of them. Since dh is the only one working I've always had that in the back of my mind that if we ever needed the alternative payment plan and were no longer eligible for it, what would we do.

At this point I don't even believe one would help us since I did a preliminary list of bills and we are at the max on our monthly income on utmost necessary expenses and that doesn't include all of the small loans and pawns. No wonder I never have enough to get me through the week. Some drastic changes are needed here! I will call the credit counseling service on Monday.

[dolphin]

Rodmick, how do you write a cease and desist letter? How do you word it? Thanks for your help.

[Valerie in WA]

http://credit.about.com/od/debtcolle...easedesist.htm

http://www.consumercounseling.org/ne...sistLetter.htm

http://www.creditmania.com/Letters/cease.asp

I think the second one looks the best.

[PrairieRose]

You've gotten some great advice here Carolyn. Write that letter, stop that auto draft. Pay what you can by check each month. Dave says to never give them access to your checking acct. for just the reasons you mentioned.

[christina33]

1) Write a cease and desist letter
2) You may need a credit counseling program to lower your payments but it sounds like the CC companies are already working with you.. but you still need their help to get a manageable payment plan set up.
Are both you and your husband name on the mortgage. If not the person who isn't should enroll in the Credit counseling program that may be one way around this. If you are making the mortgage payment and are not behind , there should not be any penalties for being in the program. The only drawback is that mortgages and secured debt is not eligible for credit counseling programs.

3) have you thought about a part-time job? Can you rent you basement out etc to bring in extra $$$ /

4) I would talk to nfcc-certified counselor to see what your options are?

5) I don't know about a home equity loan but that would be my LAST resort !!!

6) Hang in there

[dolphin]

1) Write a cease and desist letter
2) You may need a credit counseling program to lower your payments but it sounds like the CC companies are already working with you.. but you still need their help to get a manageable payment plan set up.
Are both you and your husband name on the mortgage. If not the person who isn't should enroll in the Credit counseling program that may be one way around this. If you are making the mortgage payment and are not behind , there should not be any penalties for being in the program. The only drawback is that mortgages and secured debt is not eligible for credit counseling programs.

3) have you thought about a part-time job? Can you rent you basement out etc to bring in extra $$$ /

4) I would talk to nfcc-certified counselor to see what your options are?

5) I don't know about a home equity loan but that would be my LAST resort !!!

6) Hang in there

Thanks for the links Valarie. I will get those letters out this week.

The credit card companies won't work with me if I don't use the automatic checking account payment. It's the only way their program will work according to them. But, I can't afford to pay them right now anyway till I get my essential bills current.


I'm disabled and although I do try to get jobs now and then, I end up having to quit within 2 or 3 weeks even if it's parttime due to my health issues. I can and do sell stuff on ebay and will be more agressive about that and I'll be looking for a parttime job even if I only last 2 weeks there. No basement or room to rent out. Dh is already freaking out because DS and his GF are living here.

I will be calling a credit counselor this week.

We are not eligible for any home equity loans. I did try that route but was repeatedly turned down. I didn't even get past the phone calls. We have a double-wide modular and although it's nice and we have equity in the home and property to the tune of about $160,000.00 it's still a doublewide and out of all of the companies that I called, only one was willing to do a re-fi or home equity and that company turned me down because I had had one late mortgage payment in the last 12 months.

I'm hanging in there and thanks so much to everyone for trying to help.

[christina33]

I would suggest you put a stop payment on the bill payments permanently, call your bank and they can do it. Mail in the amount that you can pay!!

[frugalfarmwife]

I hope that your son and his girlfriend are paying you rent and paying part of the utilities and buying their own groceries, etc. If not be tough and have them start! If they're old enough to live together they're old enough to pay the bills

Hoping things are looking up for you soon!

kj

[jen k]

i really feel for you. what happens, for example, when you tell the creditors that 20. a month is the best you can do right now, but that you will try to give them more as things get better. if they say we can only accept "X", can you still stick to your guns and say, well that is what i can do and no more, i'm sorry, but that's all i can do right now. i'd send them a letter, too. i haven't seen the examples, but i'd want to communicate through the mail only! maybe a registered letter with a payment schedule that you make up yourself. you know what your able to do and what your limitations are. if you're disabled and unable to keep work for long, maybe your family needs you more, i know it's a juggling act, but if you don't have your health it's not good. there are ways you can save if you have the time that you can't when you are working and stretching yourself thin. i think the e-bay selling is great for you. i know it's hard to feel good about your situation when you feel sucked dry, but it sounds like you are facing things and doing the best you can with what you have. i know you will come out of this with alot of good wisdom to share. bright blessings to you.

[Nemeweh]

Dolphin - I hope you read this before you send those C&D letters out. What you need is called a Limited Cease and Desist. If you send them a full C&D while still falling under the Statue of Limitations, they can and will sue you for a judgement, and they wont even attempt to contact you about it, since you just told them not to! A judge will automatically just give it to them, because you wont be there to defend yourself, since they didnt contact you! Make sense?

Please, please, please go to Creditboards.com and read read read! The people there are very knowledgeable about Collection agencies, and their practices and Consumer Law. (They have Sample Letters for the limited C&D and other letters you will need over time) They can even give you money management and credit repair advice, and teach you so much more. I know they've helped me tons AND showed me the way here... which is where I've learned how to live within my means.

If you have any questions you are more than welcome to PM me here or there (under the same username). I will be adding you to my prayers.

Nem