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Starting a debt management program- chizzuk please



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amother
Cerulean


 

Post Thu, Jun 16 2016, 6:34 pm
Preface- please no bashing. If you need to bash someone, go somewhere else.

I just hung up the phone with a debt management agency. We're (finally) starting a program that will get us out of the mess of debt we're in. All our credit card accounts will be closed, which I'm happy about, but also means we will need to completely restructure our bills and budgets. I'm very relieved and grateful that we have a plan, with a projected date we can be out of debt, but also nervous about what lies ahead. I'm looking for insights, stories and chizzuk from anyone who's been in my shoes.

Thanks in advance.
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amother
Lavender


 

Post Thu, Jun 16 2016, 7:02 pm
No advice but I share your pain sister embarrassed Crying

I'm in the same situation.
Con Ed actually shut off my electricity this Yom tov. It was a miserable, utterly humiliating embarrassed embarrassed embarrassed embarrassed embarrassed experience and my husband finally is taking this seriously, after years of me begging, nagging, and trying to control him ( which was never possible since he was holding the purse strings)

Would also love advice and chizzuk.
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youngishbear




 
 
    
 

Post Thu, Jun 16 2016, 7:12 pm
OP it makes me sad that you had to beg not to be bashed. You are taking an enormous step in the right direction and it is not easy at all. It is to be commended, not criticized!

Kol hakavod and lots of hatzlacha!
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flowerpower




 
 
    
 

Post Thu, Jun 16 2016, 7:13 pm
Good luck on the program!!!
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amother
Green


 

Post Thu, Jun 16 2016, 7:15 pm
For clarification, is debt management and credit card settlement the same thing?
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amother
Cerulean


 

Post Thu, Jun 16 2016, 7:27 pm
amother wrote:
For clarification, is debt management and credit card settlement the same thing?


I'm not sure what you mean by credit card settlement. The program were doing is debt management which is basically- the company took our credit card interest rates and negotiated them down (over 50% lower). All debt is then lumped together and we will be paying the minimum on that. We make one payment to the company and they distribute it to the crediting agencies. Our credit cards will be closed in order to prevent further debt accumulation.

Does that answer the question?
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amother
Green


 

Post Thu, Jun 16 2016, 10:07 pm
amother wrote:
I'm not sure what you mean by credit card settlement. The program were doing is debt management which is basically- the company took our credit card interest rates and negotiated them down (over 50% lower). All debt is then lumped together and we will be paying the minimum on that. We make one payment to the company and they distribute it to the crediting agencies. Our credit cards will be closed in order to prevent further debt accumulation.

Does that answer the question?



Yes, I did something similar a few years ago. Just be aware that "forgiven debt" is taxable. I wasn't aware of that until I was very involved.
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amother
Cerulean


 

Post Thu, Jun 16 2016, 10:19 pm
amother wrote:
Yes, I did something similar a few years ago. Just be aware that "forgiven debt" is taxable. I wasn't aware of that until I was very involved.


Yes, thank you, I'm aware, which is a big reason we're not going that route. I'm sorry for your predicament! I hope things worked out for you.
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amother
Lavender


 

Post Fri, Jun 17 2016, 8:31 am
Can I ask which debt management program you're using? So many out there
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amother
Cerulean


 

Post Fri, Jun 17 2016, 8:46 am
amother wrote:
Can I ask which debt management program you're using? So many out there


American consumer credit counseling
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amother
Emerald


 

Post Fri, Jun 17 2016, 9:33 am
amother wrote:
Yes, thank you, I'm aware, which is a big reason we're not going that route. I'm sorry for your predicament! I hope things worked out for you.
the part of that debt that you aren't paying. That's the part that would be considered taxable income
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amother
Cerulean


 

Post Fri, Jun 17 2016, 9:59 am
amother wrote:
the part of that debt that you aren't paying. That's the part that would be considered taxable income


There is no part of the debt were not paying. The only "cut" we're getting is reduced interest rates. Am I missing something? Scratching Head
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amother
White


 

Post Fri, Jun 17 2016, 10:13 am
We got hit years later having to pay for all the taxes of whatever was settled. So frustrating when all your trying to do is get back on your feet financially. It really put us back financially, so make sure you ask about that.
We now have one credit card that we keep very low credit on purpose and pay mostly with cash.
Hatzlacha
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