Desperately seeking advice

[Poisson]

What is the name of your state? CA

Earlier this year I was looking at my statements and was frustrated that 4 of my cards, all the payments were going to interest and I couldn’t get on top it. I tried to call one of the creditors and lower the payment, but they wouldn’t work with me them. So I thought about going to debt consolidation company. I would make payments to them and they would work with the creditors and I would get my cards paid off sooner. Unfortunately no payments were made and long story short, I am in so much trouble now. Before that, I thought my credit was bad. It wasn’t, just high amounts, but not bad. Now it’s bad.

My cards have all gone to collections. Three of the companies worked well with me. They all allowed a down payment within my means and now I am making reasonable monthly payments to them and in less then 2 years, I will be paid off with them. They all got rid of the interest and now I am making the payments. The downside is that the three companies added a charge off on my credit, and now my credit hurts. The last company is a bigger issue. They want me to give the full amount now, instead of the monthly payments that I requested to do. I can’t do a large down payment because I have little money to spare. The full amount is $7000, which I intend to pay, but can’t pay all right now.

Are there loans I can get (with my now awful credit) and make the needed payments to them? I can’t find any help. Or, do you know any credit card companies that will work with my situation. After I pay off my first three cards, I can focus all my payments on the remaining card. I could make the interest payments on that card until this year is up, then make larger payments.

Please don’t yell at me. Please don’t mock me. I am already sick enough to myself about this situation and am so frustrated that I let myself get this far in trouble. I wasn’t raised this way and so it’s very hard to even accept that I am going through this. I just need advice. Also, just to let you know. I haven’t even used a credit card for little less than a year now. I was laid off last year and used it during the unemployment time and that is why it got a little bad, but since I got my job, I don’t think I have used them at all. One last thing, I make only $30K/yr, so I am okay, but not rich right now. I just am desperate for advice. Thanks.

 

[Poisson]

One more thing....

I don't want to declare bankruptcy and even if I am screwed with my credit, I still feel I should pay my debts. Besides, it won't go away 100 percent until that happens. I guess I need advice too on how to clean up up my credit, but I'll worry about that next.

Question though. With the final company, what should I do. What if I can't come up with money and they don't allow payments, what can they legally do to me. I am willing to make payments, just can't pay it off right now. Obviously if I could, I wouldn't be in this boat. What are the legal rights once it goes to collections, on both sides of the coin (for me and for them)?

Any suggestions, still, on places that give loans or CC's for those with crappy credit like i have.

 

[Ladynred]

You have learned the hard lesson that debt consolidation/managment/negotiation companys are pure scams and they usually hurt more than help.

There's very little liklihood you'll get more credit from any source with bad credit - and its a bad idea anyway.

The demand from the collection agency for 'all of it now' is typical and its also likely to be a crock. They want to intimidate you to pay it all off even when that is impossible. If you're going to negotiate, stay off the phone and do everything in writing ONLY. Offer a settlement or payment plan you can afford, but don't expect them to accept $20 a month on a 7K debt.

What CAN they do ? They can sue you, win a judgment, garnish wages and sieze non-exempt assets - but only if they win the judgment FIRST.

 

[Poisson]

Okay. Again. I need advice. By the time I am out of this situation, I am going to be so educated in the whole credit system. 1000 times more than before. Maybe that is why I am where I am.

Anyway. I need to know what to to. I have very little bending room. But I think I can afford $100-$125/month of payments on a debt that has been turned over to a collection agency. I am sure it is charged off from AMEX because I just got a notice that it was charged off. It's for $7000. First, thye called last week and asked what I could do, mostly wanting me to come up with $7000, which obviously I couldn't do. Then they didn't bother me for a couple days. They called me yesterday, but I wasn't by my phone when they called. What do you think the chances I have in writing to them and requesting a payment plan of $100-$125 for the next couple of years and after that, the payments will increase. With the other two that were charged off I talked to them and actually they dropped of about 20 percent of the debt and now I am making monthly payments to them. I know that it is suggested to not make payments after the charge off, but I still am. I will then dispute it once it is paid off. But with the $7000, how screwed am I if I don't pay it all and request montly payments? What is the best suggestion to contact them? Writing? Phone? I am afraid of getting sued? I want to pay but can't do it all now.

 

[nissandave]

I know you said that you did not want to file bankruptcy, but if you did do that, you could still voluntarily repay the debts upon your own terms. One thing you may not realize is the tax consequences of chargeoffs. You need to consult your tax advisor, as they may be considered taxable income. With a bankruptcy, depending upon your circumstances, they may very well may not be considered taxable income.