brokeb

67,000 in CC debt - need help

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So i would like to say this site has alot of knowledge .... i ve been doing some reading the past several days. Im just overwelmed by the debt that i have. We have put our home up for sale so it doesnt foreclose we are trying a short sale and have an offer already so we are in a waiting game now with the 2 lenders i have a 1st and 2nd mortgage.

I have 67,000 (21 creditors) dollars in unsecured debt im between 30 and 50 days past due on most of them and i dont know were to start, ive had meetings with attorneys for bankruptcy and we make to much money , i ve talk to debt settlement co. and i never had a good feeling about them and so i see from reading info on this site--- im a commisioned sales person and its so hard to make a budget my industry is terrible i just need some advice.

thank you guys very much

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Stay away from any and all debt settlement companies. What they can do for you, you can easily do for yourself.

First thing is to obtain copies of all three CR's if you haven't already done so. This will show you where you stand.

Second, get a large legal pad and write down each creditor's name and contact information, the current balance, current interest rate you are paying and leave enough room for notations when talking to them.

Third, call each creditor and ask to speak with someone in their hardship department. Generally, a customer service rep (CSR) will not be able to assist you so you need to speak with someone who can. The hardship department may be of some use to you.

Fourth, do not make the same mistake I did by avoiding your creditors. Keeping the lines of communication open with them will help you out as they can see that you are making an effort to do something about your debt with them.

Fifth, When you call your creditors, make sure you get the person's name and their phone number with extension. Write down the date and time that you called. Get their address as well. Once you are done, if you have been successful in reaching a compromise with them, send them a follow up letter CMRRR so that they have a "reminder" of the agreement that you have reached with them. You will also want them to send you a letter outlining any agreements you have made. Do NOT agree to anything unless you can get it in writing.

Sixth - do NOT provide any banking account information to them. Even if they tell you that it's the only way they will agree to a lesser monthly amount. Don't do it. Giving them your bank account information is like taking your paycheck, signing it and handing it to them. You need to stay in control of your money, not them.

this is a great article on debt elimination on the main CIC site and may offer some useful suggestions to you.

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Brokeb, i am new to the board, but can provide solid assistance if needed as i was JUST in your situation. i know what will work with certain creditors, and what is a good % to settle for.

Lets chat if you want to get this over with in the next few months!

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Solicitation of business by "debt fixers" is strickly forbidden by the rules of this board...not to mention dangerous.

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Solicitation of business by "debt fixers" is strickly forbidden by the rules of this board...not to mention dangerous.

again, where did i say anything about "fixing" anyone's debt? there are no magic tricks, but there are better ways to deal with situations.

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again, where did i say anything about "fixing" anyone's debt? there are no magic tricks, but there are better ways to deal with situations.
I'm sorry. Perhaps I've misjudged you. What better ways do you suggest?

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only better way i know is to negotiate with the creditors.

This has nothing to do with "fixing" debt..this is the most ethical and least damaging thing to your future. Of course with this being a debt settlement forum, its what we are all looking for/advising others on here anyway.

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Lets chat if you want to get this over with in the next few months!

No offense, but this sounds like you're trolling for business. If you have some tips, why not just post them to the board so we can all see and learn.

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No offense, but this sounds like you're trolling for business. If you have some tips, why not just post them to the board so we can all see and learn.

Yep, just like the guy on an infomercial that spends 90 minutes telling you how his book explains teaches you how to be a millionaire. How about just telling us in 90 minutes? or TWO infomercials and take 180 minutes. You see it is buying his book that makes him rich, not the methods written in it. I agree, if you have methods, stop the doublespeak and list them...we're all willing to learn, but not to pay for your lessons.

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OP, it sounds like you are a canidate for BK. How many attorney's did you speak to about your situation? There are attorney's that try for a CH 13 because they ultimately get a higher fee. Some work for those BK mills that are all over the place now. Not all attorney's are the same. I was above median and filed a CH 7 on large debt, recently discharged. It can be done with the right attorney. (I am not suggesting anything funky...just that the attorney's that know their stuff are better than the BK mills, IMHO).

A positive response to your short sale with two mortgages here in FL is very rare. In our area, Palm Beach Cty, only 4% to 7% of the short sales actually close. All the rest go under contract but never close (mainly because the lender(s) wants the seller to sign a large note for the difference between the sales price and the amount due on the first and/or second!). I am not trying to be negative here. Just look at your entire situation and work assuming the short sale will not close. That may put a different light on your debt.

As to not being able to budget. I agree that it is more difficult to budget when you are commission sales. I have been (and I still am) in commission sales full time for the past 30 yrs. Budgeting can be done. In fact it must be done EVEN MORE SO for the commission sales person. I found that without a budget - we sales people have a tendency to spend our gross rather than our net. In order to figure out what's best for you, the very first thing you need to do is set up a budget for worst case senerio - including savings.

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OP, it sounds like you are a canidate for BK. How many attorney's did you speak to about your situation? There are attorney's that try for a CH 13 because they ultimately get a higher fee. Some work for those BK mills that are all over the place now. Not all attorney's are the same. I was above median and filed a CH 7 on large debt, recently discharged. It can be done with the right attorney. (I am not suggesting anything funky...just that the attorney's that know their stuff are better than the BK mills, IMHO).

A positive response to your short sale with two mortgages here in FL is very rare. In our area, Palm Beach Cty, only 4% to 7% of the short sales actually close. All the rest go under contract but never close (mainly because the lender(s) wants the seller to sign a large note for the difference between the sales price and the amount due on the first and/or second!). I am not trying to be negative here. Just look at your entire situation and work assuming the short sale will not close. That may put a different light on your debt.

As to not being able to budget. I agree that it is more difficult to budget when you are commission sales. I have been (and I still am) in commission sales full time for the past 30 yrs. Budgeting can be done. In fact it must be done EVEN MORE SO for the commission sales person. I found that without a budget - we sales people have a tendency to spend our gross rather than our net. In order to figure out what's best for you, the very first thing you need to do is set up a budget for worst case senerio - including savings.

you say work assuming the short sale wont close ----- what do you mean by that ??

btw thank you everyone for the input ..... i worked on about 6 cc today and all were re-negotiated for diff terms ..

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Yep, just like the guy on an infomercial that spends 90 minutes telling you how his book explains teaches you how to be a millionaire. How about just telling us in 90 minutes? or TWO infomercials and take 180 minutes. You see it is buying his book that makes him rich, not the methods written in it. I agree, if you have methods, stop the doublespeak and list them...we're all willing to learn, but not to pay for your lessons.

:crickets:

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Stay away from any and all debt settlement companies. What they can do for you, you can easily do for yourself.

First thing is to obtain copies of all three CR's if you haven't already done so. This will show you where you stand.

Second, get a large legal pad and write down each creditor's name and contact information, the current balance, current interest rate you are paying and leave enough room for notations when talking to them.

Third, call each creditor and ask to speak with someone in their hardship department. Generally, a customer service rep (CSR) will not be able to assist you so you need to speak with someone who can. The hardship department may be of some use to you.

Fourth, do not make the same mistake I did by avoiding your creditors. Keeping the lines of communication open with them will help you out as they can see that you are making an effort to do something about your debt with them.

Fifth, When you call your creditors, make sure you get the person's name and their phone number with extension. Write down the date and time that you called. Get their address as well. Once you are done, if you have been successful in reaching a compromise with them, send them a follow up letter CMRRR so that they have a "reminder" of the agreement that you have reached with them. You will also want them to send you a letter outlining any agreements you have made. Do NOT agree to anything unless you can get it in writing.

Sixth - do NOT provide any banking account information to them. Even if they tell you that it's the only way they will agree to a lesser monthly amount. Don't do it. Giving them your bank account information is like taking your paycheck, signing it and handing it to them. You need to stay in control of your money, not them.

this is a great article on debt elimination on the main CIC site and may offer some useful suggestions to you.

Everything is fine except no. six since there is no problem giving OC the Bank info. since other than that NO settlement, it was true for both Citi and BOA for me.

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:crickets:

what i know isn't just something you an explain in a few posts. It takes a LONG time and those who approach cards incorrectly or unprepared are bound to screw it up.

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It takes a LONG time and those who approach cards incorrectly or unprepared are bound to screw it up.

Unless they contact you??? This forum is about helping people. How are you helping?

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Mods, someone talk with "Brock", PLEASE.

The attacks and condescension have to stop.

Please reference his/hers/its post several posts back

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I reinstated him and told him what's up. But one more violation will get him banned again.

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so ive mad some deals with these companys so i can get my payments back on track ..... wamu already sent me to collections --so what do i do there ???? i really dont want to go bankrupt ...... i foiund out that some companies dont care and some really do --i had one cc tell me to what 6 more days so that the acc is 60 past due and they could cut my payment in half and reduce my interest rate in half .....forever i thought that was pretty cool ........ i will kept everyone posted

thxs everyone

ps ive been reading the Dave Ramsey deal i think thats a pretty positive book ....

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In terms of settlement...I'm in a similar spot.

I ran a mid-sized mortgage company that has been absolutely hammered by the destruction of the mortgage/finance industry. I have ended up carrying about 110k in revolving on my personal cards, and seen my score drop from a solid 750 down to a 520.

Status:

3 Amex accounts - about 35k

2 USAA accounts - about 55k

1 Barclays account - about 23k

1 Capital One - 1500ish

Where I am:

I am paying the small Capital one fine. Barclay's and I have gotten down to 40%. I told them I could do $4k flat fee, and wife out the entire 23k. They countered with 40% (close to 9k) payable over 4 months, and removal from credit report. I explained that it is a great deal, but I just don't have it. I told them the truth...Amex is suing me and I'm on the edge of BK. If you can't take 4k soon, I won't have it to offer. (which is true). They are getting back to me tomorrow.

USAA offered me 55%...but I passed. Unfortunately I don't have that at this time. Amex is guaranteeing me in writing that if i pay full balance -- even over time, they will give me a new card with 1/2 limit of the previous. (Optima).

My Plan:

I intend to do whatever I can to settle my debts in the 15-30% range. I know it is killing my credit and ability to get future cards, but I am going to avoid BK. I can work with each creditor to try and get most off. 24 months out from the settlements, with no revolving debt...my score will be much stronger than if I just cave and do a Ch7 today. My plan is to continue improving my score and moving from a settlement mindset to a true repair approach.

Not sure if this commentary helps, but I know I like to understand what creditors are doing/not doing.

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