utsava777

$ 30000 in debt

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I'm a victim of corporate america. The banks love me, i'm their perfect slave. They got me all wrapped up into their web...long story.

i have perfect credit, no lates.

I realize, that I will have to pay at least $ 400 a month on interest alone without paying off my balance on my credit cards.

I simply won't be able to do it and I'm looking for alternatives.

Can anyone give me advice which path might work best....debt settlement...consolidation...eliminating debt...bankrupsy...

Did anyone use any services at all and can recommend a specific firm/lawyer?

thanks for any advice.

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Could I use the same method on this web site regarding collection agencies to vadilidate the debt like I could use trying to settle my debt myself with

the banks?

what else can I do myself without using a service?:)++ Thanks for any advice.

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How is the 30K distributed how many cards/loans and how much on each.

You may want to pay the minimum on all but one card and pay the smallest off by making multiple payments and move up to the next card until all are paid off. That is if you can afford to do that. Maybe you can see if the creditors will reduce the interest rate seems like you have a bunch of rate jacks in there-- 30% cards if interest is 400/month.

Maybe my comments will give you a bump until someone who really knows your best option chimes in.

In the mean time good luck and hang in there.

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Hi. you said that you have perfect credit. No lates. I think it would be hard to get a creditor to settle an account that's in good standing. You may have to just muddle through and pay them all off slowly. It'll take some time, but it can be done.

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I would agree with earlier posts pay the minimal on all but one account. On this one one with the smallest balance,pay as much as possible. When finished meaning zero balance,move to the next card, with the next highest balance.

How much do you earn and what are your expenses? A charge off or settlement will haunt you for a while. I was $100,000 in debt I am now down to $35,000. In 3.5 years of work. I did enroll in counsumer credit counseling for about 3 years, I am now off the program. If you make enough I would buckle down and get yourself out of the hole. When in the consumer credit program my credit scores tanked. They are coming back now. For me dept settlement would be last on the list. You would also have to pay tax on any settlement because the credit co would send you and the I.R.S. a 1099 form thus the chargeoff becomes your income for the year and your tax burden.

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I was in same boat a few yrs ago, i paid off the smallest ones about 10k in 1 yr,, and got a heloc for the last 10k, now i pay 500 per, min. is 250 something but i always paid more if i can,my check is biweekly so some times i send hole 2nd check and use amex for the 2 weeks, i know i wont spend more then the nornal things that week food, gas ect, and than when amex bill comes i pif. and i send 1500 to 2000 that week to heloc, sending in the whole check works for me now, i dont have that cash to spend and i cafefull with the cc.brings down the 10k bal fast,

my 02,

thx

sam

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not if it is maxed out. can be without lates yet maxed out. Maxed out is not perfect credit. My friend has never been late but is maxed out and her scores are 500s.

Plus you know lots of people think they have perfect credit yet never saw their scores. The op sounds maxed out. only paying minimum. I bet the score are shot to hell in the high 500s.

Sorrry Op I am not trying to be mean just making a point. What are your scores?:confused: :confused:

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Pay them down as quickly as possible and stop using them. Simple.

I couldn't agree more. It seems a bit criminal to me to charge up a bunch of CC's and than try to find a way to get out of paying them...:?

OTOH, if the OP is concerned that they won't be able to keep up with the payments, perhaps they could look into an equity loan.

I do agree w/ paying them off as indicated by an earlier responder. I read a book once that had an entire chapter devoted to how to pay off CC debt. I sure wished to heck I would've been smart enough to jot down the title/author.

If I recall correctly, the overall idea is that you pay MORE than what you owe every month. In fact, pay as much as you can but focus on ONE at a time. Ex; Amex says you owe 50.00 that month, Visa says you owe 25.00 and maybe Macy's says you owe 35.00...the trick is...whichever card has the HIGHER interest rates, PAY IT first. Say Amex is the highest rated...so instead of 50.00, pay 75.00 (or whatever you can) than pay the minimums on the others. Once AMEX is paid off, go to the next card and so forth.

Finally, in the end--DO consider closing some of these cards so you don't find yourself in this position again. Wait though and make sure you close them out with a ZERO balance and only close the one's you don't like or who otherwise have bad rates/fees attached to them.

Elyse

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