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Serious Debt
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amother


 

Post Sun, Nov 02 2008, 11:46 pm
Dh and I are in debt for about $75k. We have been keeping up for the most part with the credit card payments until now but now we are 2 weeks behind and a new month of bills is beginning.....So now we have a bunch of late payment, apr's jacked up to like 30%, over the limit fees, etc...We realize there is no point and financially we can no longer make these payments. Credit cards are unsecured debt as far as I understand. Anyone ever been in such a situation where you just stopped making the cc payments? What happened? I'm freaking out...
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BinahYeteirah




 
 
    
 

Post Mon, Nov 03 2008, 1:11 am
If there is no way you can pay, you will have to file bankruptcy. If you don't file and just don't pay, you could end up with a lien against your house (if you own). They might be able to garnish your wages as well, but I am not sure about that. First they have to get a judgment against you. Another thing you could look into is debt consolidation. This might make your payments more reasonable for you. Don't just ignore the problem. It won't go away. Hatzlacha!
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happyone




 
 
    
 

Post Mon, Nov 03 2008, 6:11 am
Sorry you got into a mess like that. For starters, I hope you cracked those credit cards and are no longer using any. Contact a consolidated debt company, they will work with you to lower the rates and combine all your CC's into one payment, usually lower than your initial debt. A friend of mine just went through this. She ended up borrowing money from a g'mach which is interest free, to pay up the credit cards. CC's have enormous over the limit fees, late fees and interest.

Good Luck.


Last edited by happyone on Wed, Nov 11 2009, 8:22 am; edited 1 time in total
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amother


 

Post Mon, Nov 03 2008, 11:24 am
Also try contacting the cc company and ask for them to get you onto a program called balance liquidation. Some companies may even go so far as crediting you for the late payments and overdraft fees till now. I just did that (with chase), got it to 0% apr, no late or overdraft fees, and got my monthly payments to what I can manage, the same every month, directly taken out of my checking account, and of course I am not using the cards anymore, they will be reported as me closing it. Hatzlacha.
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amother


 

Post Sun, Nov 09 2008, 1:45 pm
If you live in Brooklyn, call the Angel of Debt. He advertises in the Yated. He can cut down the amount you owe to about half. Only thing is you need to pay in full once they settle. B"H he helped us get out of debt this year. (I don't even know how much we owed) He's a very honest person too.
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amother


 

Post Sun, Aug 30 2009, 1:36 pm
WE got ourselves actually I got us into a lot of debt...I actually lost alot of cash like a few thousand that I cashed and I couldnt find it. Im sick over it plus with other bills and the kids and baby ect. I am swallowed in debt..Im so scared havent told the husband Im afraid to tell him because I caused this mess.
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chocolate moose




 
 
    
 

Post Sun, Aug 30 2009, 2:33 pm
Bankruptcy laws changed a few years ago. Declaring bankruptcy doens't automatically forgive all your debts anymore.

You def need prof. help.!
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amother


 

Post Sun, Aug 30 2009, 4:02 pm
We were majorly in debt too (still are).
When we stopped paying CC, we got non stop phone calls from the CC's.
We ended up going to a debt consolidation that negotiated lower rates and no fees. Our average rate now is about 6 or 7%, two cc's refused to be part of it, one is taking us to court and one kept on calling us and finally months down the line offered us a workable payment plan.

Now we make one major payment and one smaller every month and one we still have to work out.
They let us keep a credit card open as sometimes it's the only way to pay for something.
I am happy that we are finally underr some sort of control and I don't have to jump whenthe phone rings..........
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amother


 

Post Wed, Nov 04 2009, 2:36 pm
We have about $20,000 in credit card debt plus about $2000 in utilities. I told my husband but he either doesnt want to make me feel worse than I already feel or he doesnt understand the severity of the situation. My husband makes $1000 a month and that goes straight towards rent and the rest of the bills just get pushed off. My husband says I shouldn't worry, but I do. I want to take my daughter out of playgroup because that's an extra $400 a month but my husband is completely against it because she needs to be out of the house. What can I do? Is debt consolidation an option? Would I need to have a lump sum to start paying off my debt? Where can I get money on such short notice?
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chocolate moose




 
 
    
 

Post Wed, Nov 04 2009, 2:43 pm
I don't really know. Can you take some books out of the library that will help you ?
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Mirabelle




 
 
    
 

Post Wed, Nov 04 2009, 3:00 pm
You need to call the CC companies, they will work with you. They can help you close you cards and set up a decent payment plan. I would be freaked out if my DH didnt take debt seriously. I had to help my own DH understand how credit cards and credit reports work. I'm not sure what to do about the utility debt, don't they shut off your utilities after a while if you don't pay?
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newToNeighborhood




 
 
    
 

Post Wed, Nov 04 2009, 4:51 pm
Do NOT close your credit cards! If they see you closed them, they will be less willing to work with you.
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Mirabelle




 
 
    
 

Post Wed, Nov 04 2009, 5:45 pm
No, sometimes they help you with special "hardship plans" that involve closing them and being given a managable plan. Trust me, I just did this.

You don't just close it. First you talk to them, explain what is going on, THEN they come up with a plan that will probably involve closing it.
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amother


 

Post Wed, Nov 04 2009, 5:48 pm
DiznyIma wrote:
No, sometimes they help you with special "hardship plans" that involve closing them and being given a managable plan. Trust me, I just did this.

You don't just close it. First you talk to them, explain what is going on, THEN they come up with a plan that will probably involve closing it.


I was on a hardship program that was terminated because I cant pay anymore and they dont actually close the account. They just suspend it so you cant use the card anymore. After the program is finished you have your account back.
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ange




 
 
    
 

Post Tue, Nov 10 2009, 9:47 pm
Listen to the daveramsey.com archives of the radio show. He has a step by step plan to get out of debt, and he does not advocate bankruptcy either. Also, he will show you how to negotiate settlements if needed on your own without having to pay someone to do it for you. It's a free radio program and although we are thank god not in debt, I listen religiously and have started to put his plan into place to avoid debt risk and plan for the future.

I think it's worth a try to listen. Also, you can take his book out of the library (The Total Money Makeover). But definitely listen to the show (it's clean too Smile )
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amother


 

Post Wed, Nov 11 2009, 10:15 pm
I have about $20,000 in credit card debt and I called a debt settlement company that has a guaranteed 40% settlement rate and they charge 15% of the original debt as their fee so for a $20,000 debt I will only have to pay $11,000. And its an easy one monthly payment of about $200 for 36 months. If we pay more some months or if a credit card company settles for less than 40% then we will be finished in less than 36 months. It's so much easier than paying 10 different credit card companies. The only thing is that it only works for credit card debt. It doesnt work for student loans, utility bills such as cell phone and electric/gas. After my debt is paid off it will show up on my credit report that I paid my debt but settled for less. I wont be able to get a $5000 credit card so fast but that's a good thing because I dont want to make the same mistakes again.
The most important thing is to do your research on the company because ever since the economy started going down there are little companies that keep popping up that are trying to cash in on the situation but they arent reliable and dont have as much experience as the companies that have been doing this for years.
Good Luck.
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myfriends715




 
 
    
 

Post Thu, Nov 12 2009, 8:47 am
amother wrote:
I have about $20,000 in credit card debt and I called a debt settlement company that has a guaranteed 40% settlement rate and they charge 15% of the original debt as their fee so for a $20,000 debt I will only have to pay $11,000. And its an easy one monthly payment of about $200 for 36 months. If we pay more some months or if a credit card company settles for less than 40% then we will be finished in less than 36 months. It's so much easier than paying 10 different credit card companies. The only thing is that it only works for credit card debt. It doesnt work for student loans, utility bills such as cell phone and electric/gas. After my debt is paid off it will show up on my credit report that I paid my debt but settled for less. I wont be able to get a $5000 credit card so fast but that's a good thing because I dont want to make the same mistakes again.
The most important thing is to do your research on the company because ever since the economy started going down there are little companies that keep popping up that are trying to cash in on the situation but they arent reliable and dont have as much experience as the companies that have been doing this for years.
Good Luck.


can u tell me what company you used? we are in the proces of wanting to start cc settlement due to $35k debt.
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amother


 

Post Thu, Nov 12 2009, 10:05 am
myfriends715 wrote:
amother wrote:
I have about $20,000 in credit card debt and I called a debt settlement company that has a guaranteed 40% settlement rate and they charge 15% of the original debt as their fee so for a $20,000 debt I will only have to pay $11,000. And its an easy one monthly payment of about $200 for 36 months. If we pay more some months or if a credit card company settles for less than 40% then we will be finished in less than 36 months. It's so much easier than paying 10 different credit card companies. The only thing is that it only works for credit card debt. It doesnt work for student loans, utility bills such as cell phone and electric/gas. After my debt is paid off it will show up on my credit report that I paid my debt but settled for less. I wont be able to get a $5000 credit card so fast but that's a good thing because I dont want to make the same mistakes again.
The most important thing is to do your research on the company because ever since the economy started going down there are little companies that keep popping up that are trying to cash in on the situation but they arent reliable and dont have as much experience as the companies that have been doing this for years.
Good Luck.


can u tell me what company you used? we are in the proces of wanting to start cc settlement due to $35k debt.


I signed up on a website, I think it was debtsettlement.com or something like that and they gave my info to a million different companies so I got a million calls from all the companies. The first one I spoke to was a weird indian guy and it just felt weird so he explained everything to me and I said I would think about it. Then about 10 calls later (which I just stopped picking up) I wasnt busy that minute so I picked up and it was a really nice lady and she explained everything to me and answered all my questions. I will probably go with her. The company is New Beginnings. Her name is Robin. When I was doing my research I saw that most companies charge 15% so the only real difference between companies is their "extras" like credit counceling and having an online system.
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amother


 

Post Thu, Nov 12 2009, 10:07 am
amother wrote:
myfriends715 wrote:
amother wrote:
I have about $20,000 in credit card debt and I called a debt settlement company that has a guaranteed 40% settlement rate and they charge 15% of the original debt as their fee so for a $20,000 debt I will only have to pay $11,000. And its an easy one monthly payment of about $200 for 36 months. If we pay more some months or if a credit card company settles for less than 40% then we will be finished in less than 36 months. It's so much easier than paying 10 different credit card companies. The only thing is that it only works for credit card debt. It doesnt work for student loans, utility bills such as cell phone and electric/gas. After my debt is paid off it will show up on my credit report that I paid my debt but settled for less. I wont be able to get a $5000 credit card so fast but that's a good thing because I dont want to make the same mistakes again.
The most important thing is to do your research on the company because ever since the economy started going down there are little companies that keep popping up that are trying to cash in on the situation but they arent reliable and dont have as much experience as the companies that have been doing this for years.
Good Luck.


can u tell me what company you used? we are in the proces of wanting to start cc settlement due to $35k debt.


I signed up on a website, I think it was debtsettlement.com or something like that and they gave my info to a million different companies so I got a million calls from all the companies. The first one I spoke to was a weird indian guy and it just felt weird so he explained everything to me and I said I would think about it. Then about 10 calls later (which I just stopped picking up) I wasnt busy that minute so I picked up and it was a really nice lady and she explained everything to me and answered all my questions. I will probably go with her. The company is New Beginnings. Her name is Robin. When I was doing my research I saw that most companies charge 15% so the only real difference between companies is their "extras" like credit counceling and having an online system.


http://www.newbeginningsonline.com/home.php
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amother


 

Post Thu, Nov 12 2009, 10:14 am
This can be helpful:

http://debt-consolidation-serv......com/
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