katcon

In a pickle! Need advice please.

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I am a new poster even though I have been reading the boards here for a couple of months. My story in a nutshell: have over 52K in debt, have always paid everything ontime and had over 700 credit score until losing my job last year, back to work now but had to take a huge pay cut, havent paid any cards since April. I have already started receiving settlement offers however I have explained to everyone that I dont have any money at this time and am working on trying to get a second job to save money to settle. At this point I am just ignoring the 7-10 calls I get per day from the various agencies. NCO is the worst! My question is: since I have nothing new to offer at the moment I am planning on continuing to ignore the calls, will they eventually stop calling and start coorsponding with me through mail? I have debt with Barclays, Nordstrom, Amex, Citi, Chase, Discover, and Capitol One (Best Buy). Any advise is greatly appreciated. Cant wait till this nightmare is over and the sad part is that I have just begun!

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One more question: should I withdraw the 5800 I have in 401K to try and settle some of the smaller debts? I know that is usually a no-no but I am still in my 30's and have time to rebuild.

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Leave the 401k money alone, if you do eventually have to file for BK, its safe.

If its the phone calls are bothering you, they wont stop by the way, ditch your home phone, get a VOIP line for your use, give n one this number other than family/friends. Also get a google voice # and give that to the collection agencies and everyone else for that matter.

Always call the collection agencies via the google voice number as well.

Saved me a lot of anxiety that way, my credit reports now show the GV as my phone number.

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For the phone calls, consider sending a C&D. Be careful however, while there is such a thing as a LIMITED C&D (no calls but you can write me), my experience has been that they treat such as if it were a full-on C&D. If you are hoping to receive a settlement letter sometime in the future, IMHO, I would not try a limited C&D.

My very best advice is to continue reading here and avoid hasty decisions based upon panic.

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A C&D should stop all the phone calls, but it can incite them to sue if you are still within SOL. It sounds like you are still a long way off from SOL, so I believe the Google Voice number is great advice. It's free!

Get an address from your callers (or if they have mailed you a dun letter) and send a DV letter to each one calling. Within that letter, be sure to state "all calls are inconvenient." In some instances, that alone causes them to turn and run. They may sell the debt to another JDB and start everything all over again, but that is buying you time toward the SOL.

A strategy that sometimes works is to send the DV/C&D letter saying all calls are inconvenient, but then when you type your name (do not sign), under it put your Google Voice number. Putting that phone number there sometimes encourages them to still call. One neat thing about Google Voice is that it keeps a call history in Google and transcribes VM left, giving you proof of their violation(s) should you decide to sue or countersue.

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"My question is: since I have nothing new to offer at the moment I am planning on continuing to ignore the calls, ......."

in my experience with my settlement, call density was very cyclical. In other words for a while it was a sea of calls then almost nothing then a trickle then a sea again.

While I did get letters as well from the OCS they were clearly form type letters and not what I would call "real communication".

I got to the point pretty quickly that it didnt bother me but if you are not there then I recommend the actions above as far as google voice.

As for tapping your 401k, no. If you mean a real withdrawal you will be hit for a large tax bite (35% I believe?) so you have a lot less than 5800 to play with.

As mentioned before this is safe anyway in pretty much all actions besides a divorce anyway so dont touch it unless dire need (you getting a lot of phone calls is not a dire need)

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I am a new poster even though I have been reading the boards here for a couple of months. My story in a nutshell: have over 52K in debt, have always paid everything ontime and had over 700 credit score until losing my job last year, back to work now but had to take a huge pay cut, havent paid any cards since April. I have already started receiving settlement offers however I have explained to everyone that I dont have any money at this time and am working on trying to get a second job to save money to settle. At this point I am just ignoring the 7-10 calls I get per day from the various agencies. NCO is the worst! My question is: since I have nothing new to offer at the moment I am planning on continuing to ignore the calls, will they eventually stop calling and start coorsponding with me through mail? I have debt with Barclays, Nordstrom, Amex, Citi, Chase, Discover, and Capitol One (Best Buy). Any advise is greatly appreciated. Cant wait till this nightmare is over and the sad part is that I have just begun!

With a huge paycut and $52K in cc debt, your best course of action may well be the applicable chapter of bk.

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As far as the 401(k) goes, using that would be a BIG mistake. IRS will fine you 10%, and the remainder will be taxed as regular income.

At your age, you say you have time to recoup.

However, you need to understand the rule of 72. The rule of 72 is whatever interest you are making on something, divide that number into 72. The answer is approximately how long it takes for your money to double.

By taking this money now, you could very well be knocking off an entire doubling period.

What that means, is say when you retire you have $500,000 to retire on. Missing just one doubling period could mean the difference between $500,000 and $1million to retire on. The hit would not be realized now. It will be realized at the end, when you are ready to retire.

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The FDCPA protects consumers including debtors against unfair debt collections practices of creditors just like calling before 8am or after 9pm several times in a day and using obscene, profane, or abusive language and threatening you that they will hurt you if you will not be able to repay them. They cannot also threaten you that they will report you to credit bureaus, they will sue when in fact they will not actually be doing the same or they will call some people you know like your family, friends, co - workers or employer and tell them about your debt. If they are doing all these things to you, then evidently, they are violating the FDCPA so that will be your leverage in fighting them back.

In addition, you will not be committing a crime if you will not answer their calls or you will avoid their calls by changing your number. And when they start sending you collection letters, then its also the right time to write them back and ask them to validate the debt. Never ever pay if the debt is not validated by your creditors themselves or you will just be giving away your money to some third party collection agencies that will not relay your payment to your creditor. If you do otherwise, don't be surprised if you will receive another letter later from your creditors demanding you for the same debts that you owed them despite of the fact that you believed that you have already settled.

Lastly, if don't want to pay or you are still unable to pay at the moment, then you may hide from being served a lawsuit. There is nothing that they can do if they will not be able to serve a lawsuit because you cannot be located. There is nothing that they can do about it.To best do this, hire a debt settlement company that will work on helping you with the process of judgement proofing you or negotiating with your creditors so you will be given enough time to pay all your debts. Hope this helps...

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To best do this, hire a debt settlement company that will work on helping you with the process of judgement proofing you or negotiating with your creditors so you will be given enough time to pay all your debts.

I was reading along thinking pretty good advice/info until you got to this disaster. DO NOT hire a debt settlement company, especially if you are scared and don't know anything about this stuff.

All you will be doing is coming back in six months to a year with the same problems, usually worse, and a lot less money in your pocket. While I can't say they are all ripoffs, they are nothing more than a chapter 13 bankruptcy. Only the creditors are under no obligation to agree like they are in a chapter 13.

Call a debt settlement company and I bet you can't get a one of them to put in writing exactly how much the debt will settle for in six months. They will only tell you that you will have a lot of money saved and then they will call the creditor and get them to settle for a lump sum. Ask them to put that in writing and the won't/can't. Ten years ago I was actually told they don't put things in writing but have a "gentlemen's agreement" with the creditors. :ROFLMAO2:

There are horror stories all the time about one creditor not agreeing when the others did. The the consumer gets sued anyway and they are out all the money to the creditors that would agree but still forced into BK by the one that would not.

If the terms and conditions can't be put in writing, for example, if you pay debt settlement company 500.00 month for six months then your Citibank card will be settled guaranteed for 2500.00 and we get 500.00 for doing it, then don't agree. And you won't be agreeing because nobody can. They will tell you it will happen because "they do this all the time" "the creditors know it's this or nothing" PUT IT IN WRITING !!!!!!!!!!!!!!!!!

And then keep this in mind, all the creditors have to agree. It does you no good to have five creditors you and work out great deals with four of them if the fifth one won't play play ball. If the fifth one can drive you into BK then you've just blown all your money and you're still sitting with a BK.

All the other advice or info was right on. The OP is new and if this is info they really believe then I invite them to research and ask more questions. If the main goal is to steer people to a certain debt settlement company then you've picked the wrong board, you're not going to find one regular poster that is going to agree that debt settlement companies are the way to go when buried in debt and unfamiliar with the laws and the court system.

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Lastly, if don't want to pay or you are still unable to pay at the moment, then you may hide from being served a lawsuit. There is nothing that they can do if they will not be able to serve a lawsuit because you cannot be located. There is nothing that they can do about it.

That's not true. South Carolina and other states allow "service by publication". It's never a good idea to tell people to hide from being served.

To best do this, hire a debt settlement company that will work on helping you with the process of judgement proofing you or negotiating with your creditors so you will be given enough time to pay all your debts
.

Another bad idea.

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