Debt Settlement?

**MikeandMattsMom** · 05-23-2008, 02:55 PM

Hi everyone. I made a post in this section a couple weeks ago about just flat out being broke. I had 6 dollars left over after paying my bills. Well, since then, I have went thru care one and they have recommended something called Debt settlement to me. They are saying this is the very best way to go in my case without filing bankrupsy. Let me tell you that I have over 60,000 in just credit card debt. I have been doing my homework and I am just currious is anyone here has had experience with this or can tell me anything.
I am pretty sure we are going to go with the program but Im going to continue to research over the weekend and make my decision next week. The scary part is.....I am current on all my bills but we have been counting on my dh's overtime and that has stopped as of 2 weeks ago. We are short about 700 every month now so something has to be done. I just dont know what else to do. Its scary because I was told by my attorney to just stop paying my bills as of now. The bills will then go to collections in about 3-4 months and thats when the attorney starts negotiation with the collections on a settlement.
My payment will be 500 dollars less than what JUST MY MINIMUMS are now on my CC's. AT the rate, if I dont do this, I will never be out of this mess becuase im paying so much interest.

To say I am scared is an understatment. I have high blood pressure, high cholesteral AND diabetes and I cant even afford my meds and I am making myself sick over this. I mean seriously sick.

Please any advice i would sooooooo much appreciate. Thank you for all the posts to my other thread I havent been here much just dealing with this and I greatly appreciate your advice.

**Dancing Lotus** · 05-23-2008, 03:12 PM

700 a month is a lot to be short. I don't see how you can manage without a debt consolidation. IF you can consolidate rather then bankruptcy I would do it. We have very little credit card debit but it has taken two yrs of life without credit cards to get to this point. I hope to get it all paid off within the yr.

Try not to worry your self sick. That won't be doing you any favors. Just find a plan and stick with it. Get a plan and every day wake up with a fresh new attitude about what you can do today to help.

Do you work? If not consider going to just one car. We have been a one car family for two yrs and it hasn't been a big deal at all. Use the money you make from selling your car to build an EF. If you owe on the car at least thats one less bill.

IF you need ideas or just support there are a lot of friendly people here for you to talk to.

**FrugalMomof3** · 05-23-2008, 03:44 PM

I agree with Ann, $700 a month is alot to be short by but by any means try to avoid bankruptcy, I also agree that you shouldn't worry yourself sick, at this point there is nothing you can do but hope for the best.

In the meantime is there anything you can sell for quick cash?

**wannabedebtfree** · 05-23-2008, 03:49 PM

If this is debt consolidation, be careful, not all of the companies are legit. If you are just trying to pay a few pennies on the dollar of the amount owed, be sure to get an agreement IN WRITING from the company who agrees to it. Get the agreement before they get money. Do not give them access to your account, send them a money order. Good luck.

**MikeandMattsMom** · 05-23-2008, 03:56 PM

hi ladies,

I am looking into selling something that I may get a couple hundred for. We have older cars thats paid for so that means NO car loans so thats good.

With my settlement plan, I am cutting off 29,000 of my debt, lowering my payments to 702 a month and will be debt free in 4-6 years. Depending on my cc's how fast they can get them to settle. I would rather do this than bankrupsy because at least i am paying SOME of what I owe.

Bottom line, before I had no plan. I had NO idea how I was going to get out of this mess.

Now, with choosing a debt settlement plan, I have a goal. Its reachable!! Not what I want to do but what i have to do.

Debt settlement is different than debt consolidation i think. With settlement you have to get your accounts delinquent, they go into collections, and your attorney and the collections try to settle your account. Usually by cutting the amount you owe in half. Sometimes a little less.

So, as of today, I have stopped paying my cc bills. I pay my mortage, utilities and things other than credit cards. That is so scary but thats what I have to do to get this going. They dont settle on current accounts.

As far as my credit, Its getting bad anyway because of the high debt to ratio I couldnt get a cc even is i wanted to.

Also, a debt settlement doesnt stay on your credit report as long as a bankrupsy.

scary, but I gotta do what i gotta do.

**Suzi T.** · 05-23-2008, 04:22 PM

First, how much are you paying your lawyer to do this? If not him, then SOMEONE is making money off of you. Call Consumer Credit Counseling Service. They negociate with your creditors for you and arrange a settlement for you.

**jettsmom** · 05-23-2008, 04:25 PM

I have heard about asking cc companies what they will take, because they would much rather get a smaller amount than nothing at all.

I don't really know anything about it, but it was mentioned to dh a few weeks ago.

**Frugal Nurse** · 05-25-2008, 09:35 AM

I'm going to be naughty here.
But... how in heck did one get $60,000 in cc debt?
Did something happen?

Look.. $700/mo short isn't ALL that much. It's a PT PT job. That's right.. it's an extra job that one of you will have to do that will bring home an extra $175 per week. (preferably more so you can pay down faster)

18 years ago when my ex got me into a huge $20K hole, I worked a paper route to earn an extra $800 month to pay off everything I owe. that's with 3 small babies- one still nursing. That's what is meant when one says.. 'you gatta do what you gatta do'.

It bugs me when people charge and charge and then say... "oops OT was cut.. let's just excuse ourselves of this debt."
No, let's get another job and pay off the debt. The rest of us who DO pay our debts end up picking up the slack whether it's in rising interest rates or rising costs.

There are other ways of raising the funds to pay off your debt. How about cutting back. How about not spending. How about living frugally to get the extra cash that is needed to pay down the debt that YOU incurred.

There is lots of information here on the board to help you.

I'd be leery of debt consolidation places that take your money. You'll be VERY sorry you did it. They are prolifically (if that's such a word) preying on the vulnerable consumer right now. In your case, you are not late on payments- so you have a good standing. You also have a good leg to stand on to negotiate a lower rate with each company on your own. Tell them, you want to pay them what you owe, but can the give you a better rate.

Just my opinion. Don't hate me.

(I know I'm going to get some backlashing here- and I'm sorry- I don't mean to hurt anyone's feelings. I know that some people have been forced into a situation where they just had no means to pay back debt. That's understandable, we all need to live. I am sympathetic to that. BUT! If there are means to pay back debt, such as an abled bodied person, then let's not be mushy. Tough it out and learn the lesson you were suppose to learn so it won't happen again. I will support that effort 100%)

**bumplett** · 05-25-2008, 09:53 AM

Frugal Nurse - :heart:

**bumplett** · 05-25-2008, 09:56 AM

FN - well, that was supposed to be a

type smilie ~ go figure.

I think you raise a great point, and I agree with you.

**hippytreehugger4ever** · 05-25-2008, 10:08 AM

Originally Posted by Frugal Nurse

I'm going to be naughty here.
But... how in heck did one get $60,000 in cc debt?
Did something happen?

Look.. $700/mo short isn't ALL that much. It's a PT PT job. That's right.. it's an extra job that one of you will have to do that will bring home an extra $175 per week. (preferably more so you can pay down faster)

18 years ago when my ex got me into a huge $20K hole, I worked a paper route to earn an extra $800 month to pay off everything I owe. that's with 3 small babies- one still nursing. That's what is meant when one says.. 'you gatta do what you gatta do'.

It bugs me when people charge and charge and then say... "oops OT was cut.. let's just excuse ourselves of this debt."
No, let's get another job and pay off the debt. The rest of us who DO pay our debts end up picking up the slack whether it's in rising interest rates or rising costs.

There are other ways of raising the funds to pay off your debt. How about cutting back. How about not spending. How about living frugally to get the extra cash that is needed to pay down the debt that YOU incurred.

There is lots of information here on the board to help you.

I'd be leery of debt consolidation places that take your money. You'll be VERY sorry you did it. They are prolifically (if that's such a word) preying on the vulnerable consumer right now. In your case, you are not late on payments- so you have a good standing. You also have a good leg to stand on to negotiate a lower rate with each company on your own. Tell them, you want to pay them what you owe, but can the give you a better rate.

Just my opinion. Don't hate me.

(I know I'm going to get some backlashing here- and I'm sorry- I don't mean to hurt anyone's feelings. I know that some people have been forced into a situation where they just had no means to pay back debt. That's understandable, we all need to live. I am sympathetic to that. BUT! If there are means to pay back debt, such as an abled bodied person, then let's not be mushy. Tough it out and learn the lesson you were suppose to learn so it won't happen again. I will support that effort 100%)

I was thinking the exact same thing! I just didn't say it because it seems like on here if you voice an opinion that goes against the grain of everyone else, we get the lecture of "I'm very disappointed of how this thread is going....."

And then the thread disappears

**annymoll** · 05-25-2008, 11:18 AM

Originally Posted by Frugal Nurse

I'm going to be naughty here.
But... how in heck did one get $60,000 in cc debt?
Did something happen?

Look.. $700/mo short isn't ALL that much. It's a PT PT job. That's right.. it's an extra job that one of you will have to do that will bring home an extra $175 per week. (preferably more so you can pay down faster)

18 years ago when my ex got me into a huge $20K hole, I worked a paper route to earn an extra $800 month to pay off everything I owe. that's with 3 small babies- one still nursing. That's what is meant when one says.. 'you gatta do what you gatta do'.

It bugs me when people charge and charge and then say... "oops OT was cut.. let's just excuse ourselves of this debt."
No, let's get another job and pay off the debt. The rest of us who DO pay our debts end up picking up the slack whether it's in rising interest rates or rising costs.

There are other ways of raising the funds to pay off your debt. How about cutting back. How about not spending. How about living frugally to get the extra cash that is needed to pay down the debt that YOU incurred.

There is lots of information here on the board to help you.

I'd be leery of debt consolidation places that take your money. You'll be VERY sorry you did it. They are prolifically (if that's such a word) preying on the vulnerable consumer right now. In your case, you are not late on payments- so you have a good standing. You also have a good leg to stand on to negotiate a lower rate with each company on your own. Tell them, you want to pay them what you owe, but can the give you a better rate.

Just my opinion. Don't hate me.

(I know I'm going to get some backlashing here- and I'm sorry- I don't mean to hurt anyone's feelings. I know that some people have been forced into a situation where they just had no means to pay back debt. That's understandable, we all need to live. I am sympathetic to that. BUT! If there are means to pay back debt, such as an abled bodied person, then let's not be mushy. Tough it out and learn the lesson you were suppose to learn so it won't happen again. I will support that effort 100%)

Very well said, and nicely so.(I love your disclaimers.... not meant to offend those who can't work, shouldn't work,are unable to work, or those who enjoy sitting on the pity potty.)

**Frugal Nurse** · 05-25-2008, 12:21 PM

I'm in trouble aren't I?

**annymoll** · 05-25-2008, 12:35 PM

Originally Posted by Frugal Nurse

I'm in trouble aren't I?

I think you a sensible, kind lady. One idea for a part time job is cleaning. It is easy to set your own schedule and work around other jobs, kids etc.Plus, you can make decent income.I never thought of a paper route. Another idea (during the school year) is a school bus driver. They have a shift in the am for a couple of hours, and in the evening for a couple of hours, plus summers off.Also a cook at the school .Or doing lawn mowing.Cleaning flowerbeds and yardwork.McDonalds. Just a few part time jobs I know of.

**annymoll** · 05-25-2008, 12:43 PM

I thought of one more ting. If you do not have a weak stomach advertise yourself as a "Rental Disaster Cleaning Serving."Clean the apartments that have been totally trashed by tenants. (The kind that when you walk in, you think it should be condemned.)You can charge sky high for that type of work!!!