getting rid of debt (new to this)

[gman26]

I'm new to this site and trying to get out of debt. I owe about 35,000.00 and don't know where to start. I don't have any cash to settle with, just behind in everything. Thought about the debt settlement companies, but I heard they rip you off.

I have two major bills, $20,000.00 (AMEX) and $10,000 (FMC). In addition, 2300.00 to the IRS and about 2500.00 in back medical bills.

What would be the best plan of attack? I am not a homeowner.

Thanks!

[willingtocope]

Well you're right about the debt settlement companies...they're almost all scams...and none of them do anything you can't do yourself.

Now...20k to AMEX is a problem. They're nasty and are likely to put you out for collections and will definitely sue for that amount. IF...big if...these are the only creditors you owe...you may be able to get them to work with you. Assuming AMEX is an Optima card rather than a"balance due upon receipt" card they do have a forebearance (sp?) program whereby they will allow you to make lower payments for a period of time. This is only a good deal if you see your finances improving to the point where you will be able to resume higher payments in the future. If thats the case, call them and ask...they might say no, but its worth a try.

Same thing for FMC. The IRS will also let you make payments. The medical bills are hard to predict.

But...don't commit to anything until you've contacted everyone. Once you've called everyone and you know what your monthly bills will be...do a spreadsheet and make a budget...if you haven't got enough left over to live on, then you might consider BK. If any of them balk at working with you, you might have to do a BK.

Bottom line...get it all down on paper...and then see where you stand.

[gman26]

Thanks for the advice, make sense.