I read debt settlement sticky and am confused.

[ShanaB]

I'm going to print off that post and read it over again but the part that confuses me is this.... we just can't keep up even the min. mo/pymts any longer - although only 3 cc are behind. Am I the only one that like 5 days after the due date the cc start calling? And they don't call once, they call up to 14 times each day. How do you deal with that?

We currently owe $26,000 in unsecured debt and simply can't go on paying $1,100 in monthly payments. And then the $35 late fee each month. Most of the 7 bills are under the credit limit but a couple are close and then there will be the over-the-limit fee as well. We actually discussed bk today but I'm confused by that as well. I'd like to work out a payment plan with all the cc but with the daily interest being added on, I'm not sure how to do that - if we could just STOP the interest from accumulating!

Maybe I just haven't read the forum enough. I just found this site and only read back about 6 pages so I'll keep reading. The gist of what I'm reading is that one just stops paying for a few months and then offers to settle? But do you pay that at once or with payments? And what's the statute of limitations that the Debt Settlement talked about? Where would I find that?

Thank you so much for any help.

[AISLE4]

No, any accounts you settle will likely not have to be paid in one payment. Most will stretch it out between 3-12 months. The creditors all have different settlement policies. And if you do stop paying for a few months, that doesn't automatically mean your creditors will settle with you. It depends on a lot of things. Do you have other bills that appear on your credit reports that you plan to keep paying? If they see that you are paying regularly on other bills, they will want some of that money for themselves. But if you do stop paying for a few months you might also want to consider the hardship programs many creditors offer. In hardship you can get your rate reduced (sometimes drastically) and get the minimum monthly payments reduced for a specific length of time. These programs usually last from 6 months to a year depending on the creditor. You need a convincing story to get into a hardship program, and you need to be able to sell it to the creditor. Not having money is not a hardship. They want a story. They won't even discuss hardship until you are three months delinquent.

Statute of limitations is the span of time allowed for legal action. After the SOL has expired you have an affirmative defense should you get sued. It varies from state to state.

They have you right where they want you. They want to charge you late fees and over the limit fees. They want you to pay no more than the minimum. The industry won't implode until there is no one left to snooker into indebtedness. Back in the day it was hard to get credit. Now every major creditor sets up tables at college orientations across the country (at least at private colleges) and signs up newbies who have no income. Maybe the creditors think mom and dad will rescue junior. No doubt.

Stick around and read. The more you know the more empowered you will be.

[mountainannie]

Hi everyone! I am so relieved to have found this board. I just stopped paying on two cards - BofA for over 8k and MBNA for about 2500- after what seemed like years of accumulating interest and never getting ahead. I still have a line of credit with my bank for 10k - on which I am paying about $1000 a month - and Amex which I pay every years. I have not been hassled at all since I have moved out of the country, have no phone and the letters just go to my sister. My credt rating was 720 which is a huge laugh since I could barely make the payments. I just stopped since I have no intention of ever using credit cards again, don't want to get into the same fix.

So my question is how do I settle for the least amount of money? Wait for the collection agencies? I am not going to lie to the CC - I could pay the minimum but was SCAMMED - particularly by MBNA which called me and offereed me a loan "JUST LIKE A CAR LOAN" - they would send me the check for $19k at 19% interest and I would be out of debt in three years. So, just like a car loan, I set up an autopay for the same day every month and set about moving offshore - unfortunately running up more debt while I did so (Fleet who was the other card before BofA - also called me and offered me the special of $4 k, in my hands in two days--- obviously I was a creditaholic! What were they doing? OK - I know that I did it and am not whining but jeeze someone should stop these guys.

anyway, within three months, the MBNA autopay started to come in late, and they bumped me to 27% -- I think that Guido on the corner is cheaper.

SO when I saw the MBNA was bought by BOA I just stopped paying, in January.

All the bills are being forwarded to me here by my sister - so I don't have the info yet..

but just generally, if I want the lowest price, should I just wait or start contacting them? I have no assessts in the states except a bank account, which has money put in every month but don't want them to get into that.

and, honestly,I do want to feel upright about this.

thanks for all the help altready, At least now I feel empowered!!

[lawexpert]

You can get rid of the $26,000 of credit card debt by doing a chapter 13 and challenging the debt collectors at the creditors meeting with all the FDCPA and FCR defenses. You must get an attorney that will argue validation, no signed contract, due process arguments.

[andbowd]

Thanks for info. AB