Monthly Archives: July 2015

Creditors will settle for less than what you owe

Creditors will settle for less than what you owe, but only if you have the money to pay them when you settle. It doesn’t sound like you do–at least not until you get your settlement.

Also, something to think about, is it wise to spend your settlement on paying off the cc companies? If you guys don’t have any reserve, are you going to be able to afford the nurse, etc? What if something happened to you?

Here’s what I would consider if I were in your situation.
1) Stop answering collection phone calls. You have enough stress going on right now. Let your answering machine take their calls until you can get a plan together that is stable and the best you know you can do.

2) Do you have a written budget? Pay the house, utilities, minimum food bills first. Then if there’s anything left, divide it by percentage among these guys. If there’s not, tell these guys there’s not. The worst they can do is trash your credit, but to be honest, it’s too late for that so who cares. Now, you can only do what you can. And that’s your decision, not theirs.

3) Send your creditors a certified letter explaining your situation.
I once heard Dave Ramsey say that when he got into major debt, he was paying some creditors a couple dollars. But he had made a chart of all his debts and what percent each debt was toward the total. He also had his budget on paper. With each payment, he sent them his budget and the debt chart to show them that he was sending as much as he could.

4) No credit counseling. Basically, you’re paying someone else to do something you can do on your own, using google for advice and tips. Here are a couple good URLs re: creditors/collections

http://www.daveramsey.com/etc/cms/faqs_91.htmlc#6

http://www.suzeorman.com/igsbase/igstemplate.cfm?SRC=MD012&SRCN=aoedetails&GnavID=84&SnavID=20&TnavID=&AreasofExpertiseID=123

This is going to be a tough road, so honestly, take care of you and your husband first. That’s what’s most important.

Has anyone read his Transforming Debt to Wealth book?  I have read a lot of pros and cons on Internet about his program.  Primarily, I am just trying to learn techniques for bringing down debt faster.  Here’s what I’ve learned, for example, from Dave Ramsey, etc.:

1.  Debt Snowball (either starting with smallest balance, or starting with highest interest).

2.  Using compound interest to your benefit by paying either every two weeks, or every week, which saves a lot of interest.

3.  I downloaded an Excel file from this group that lets you plug in balance, interest rate, and number of payments to see how long it will take to pay something off.

Does anyone know if John Cummuta, or other gurus out there, have other “techniques” that can help get debt down a little faster?

This is the type of thing that needs to be addressed

FloridaI live in Miami, Fl, and I think this is the type of thing that needs to be addressed with our lawmakers. When do you think was the last time that any of them carried a balance on a cc. I don’t pay the minimum but a little more than that plus if I needed to charge I add that up as well. I have a strick budget now. My husband kept using the card and I was like I can’t pay them off if you keep using them. Of course he was using the one with the highest interest rate as well.

AAAAAAAAAAaaaaaaaaaaa. So I took his cards and told him for a week to write down everything he “needed” he did and we added in forty extra a week for the higher price of gas and cigarettes. Added bonus I think he was really embarassed that he was spending so much on things that didn’t help the family at all. So he told me to give him $5 a week less and we’re using that to cut him down slow.

If he could quit smoking I told him that would be a car payment and he could look forward to a new car! I keep seeing comments about not canceling cards, if you have too many many cards with too high available credit, you may not be able to get a mortgage or refinance and it COULD hurt your score. If you must keep cards, keep the oldest and one or two of the newest and dump the rest, or contact them and ask for the max available credit to be greatly reduced. Just remember what Dave R keeps saying, FICO means I LOVE DEBT. Signed – Can’t wait to have no debt.

I’m going to look into this too – I think. I have just been reading everyone’s comments and so I finally went to the website at debtproofliving.com and looked over it. My goal is to pay down all my credit cards – which I am slowly, but surely doing. I even applied for payday loans in Florida a few times in the past with certain success. For the time being I’m trying to get my credit and credit score up enough to purchase my mothers home but I want a good ‘deal’. I don’t use them hardly at all, but sometimes still have to as I still ‘need’ to purchase items with them. Thanks for all the input and email responses.

I have been  silently sitting on the sidelines reading all of the great stuff i get in my inbox. My situation is a little different than everyone elses,(not the debt part,I have plenty of that!) My husband is sick and I have had to hire a nurse to take care of him during the day while i am at work. This has unfortunately made it impossible to pay ANY of the mounting credit card bills. Each credit card was used while my husband was sick. We thought he was going to get better and we could pay them off. At one point he was well enough to work and he was taken advantage of by a construction company he went to work for and they owe him around $11000.00 (7500 in wages, 3500 was the amount they agreed to pay to us for damages).

(During the last part of his employment he had a stroke and is now pretty much paralyzed on one side of his body and cannot work.) Because of them we had to move to a cheaper house , sell alot of stuff, and we have ridiculous late fees and overlimit fees on our credit cards that we cannot pay. If they had paid my husband when they were supposed to I could have paid off all of the cards, which was our intention. Now I am in collections and have creditors calling me daily. what a mess. I hope to hear from the labor board soon as we have filed a claim against these jerk’s. So my question is this: how much luck have any of you had trying to negotiate with the credit card companies? if you have had any luck at all negotiating, how did you do it? and my last question is: have any of you tried using a credit card counciling company?