This confuses me, but it may just be my confusion.
Your creditors do not want to force you into bankruptcy. They want you to have to pay them back, and if you go bankrupt they aren’t likely to get anything. So the collection agency is not trying to force you into bankruptcy. They are trying to scare, shame, upset, and generally annoy you into paying them.
Do not speak to the lenders one-by-one. Talk to a credit counselor, who will then speak to them all for you. At which point they realize you are trying to deal with your debt, and seriously considering bankruptcy – suddenly they will be much more willing to consider other options.
Well Jsgoddess I too would think this CA would not want me to file but the person who is calling me suggested filing after I told him that I would not allow them to put what I owe onto a card in which I am an authorized user. He has called me a few times demanding payment (hey thats his job I can accept that) and I tell him each time I may be able to do a settlement but I need an offer in writing and each time he says he can’t do that.
That reminds me I have to write to this CA reminding them not to call me on the number they tend to call. I’ve told him verbally but he says they need it in writing. I use my cell phone for everything but only answer if there is a number. I don’t answer unavailable or restricted calls and right after he fails to reach me he calls my parents number which I used to use (same house)
I have to make a list of what I’m spending each month for gas. Right now I know I only owe 1400 at 0% more on the car. It has 125,000 miles but I have a mechanic as a good friend so it doesn’t make sense to replace it.
I’m going to make a chart of all my outgoing expenses later this week.
I could be wrong, but I don’t think a collection agent can do anything about a settlement. He isn’t the person you need to speak to. He makes zero financial decisions.
His story was the OC would accept X as a settlement paid to the CA. I said I need it in writing before I could go to someone who might be able to help me out (put just that amount on a 0% offer they recieved) but he claims he is unable to mail me the offer.
I really don’t want to pay anything that is not in writing.
He’s probably lying. Are you including this example when you say you’ve been turned down by creditors when you’ve offered to settle?
No there was two other credit card issuers who are not willing to do anything to reduce my payments or interest for a few months.
While I was typing this I received another call from the CA who called the # I requested no calls on. I reminded her again that I am not to receive calls on this line.
They will be sending me a settlement letter via E-mail now (can’t wait to see it)
Well the E-mail I just sent to the address the caller gave me bounced back. This keeps getting better and better
If you’re talking to the creditors, and not an agency, you’re still fine. They may not volunteer a settlement (again, why should they?) but they would usually place an account on which some payment, even if it isn’t the full minimum payment, is being made. If you’re talking to an agency, you tell them what you’re willing to pay. Pay that amount. Until they start talking legal action (which, again, doesn’ t happen as long as you’re making a good-faith effort to pay) you’re fine. They can’t force you into bankruptcy. They can file suit and get a judgementt, which could garnish your wages, but even that will usually be less than your minimum payments. And they don’t want to sue, because legal action is expensive.
I think real budgetting is your first step. If you’re living at home and only have a car payment, insurance and these credit cards, you should be able to do this on $30K/year. Where is all this money going? I make the same amount, and I have a mortgage, a car and insurance for both. I have 10 animals that need food and vetting, and I still don’t charge anything. I don’t have school expenses, though. And if your mother has the car loan in her name, you might ask if you could not pay her for a couple months (paying it at the end, of course) and concentrating on getting these bills a bit caught up.
Check out Dave Ramsey’s Financial Peace from the library (don’t spend money on a book right now).
StG
IANAL, but banktupcty laws have changed within the past 5 years. Now, even if you file bankrupty, you still have payments to make on your debts. They wont’ just let you walk free and clear of everythign you owe like they did before. Also, I think some aspects of student loans are contingent on your credit rating. This was within the past 5 years, but my girlfriend wanted to go to grad school, but she didn’t qualify for any loans bc she ended up filing bankruptcy 3 years before she filed for the loans, so grad school was out of the question for her.