needinghelp87

Need debt consolidation service?

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I owe 20k in credit cards/school loans debt. Im 25. Finally got my life together and am hoping to be able to start fresh. My job is only getting me by. Im harassed daily and am getting tired of it and the shame of having to avoid it. Should I file bankruptcy or should I try one of those debt consolidating service. I do however wish to pay but at my rate of pay it could take long. Someone give me some advice to make a good decision here in my shoe? Bankruptcy or debt consolidation? If debt consolidation hoe could I find some trustworthy one because im a little afraid to even go that route. And if bankruptcy what are some pros and cons for my situation?

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Remember bankruptcy will stay on your credit report for 10 years and will be on your public information forever. It is easy to get stressed and hard to make decisions when you are in this situation. Just don't make any decisions without really thinking them over. 20K may sound like a lot of money now but it can be managed. At 25 you have a lot of time to straighten things out.

 

I would never suggest bankruptcy unless it is a last resort. As already stated above your student loans will not go away by filing BK and debt consolidation is way too risky. List how much you owe on each (with bank listed) and the terms and it will be easier to help answer your question. You might want to also list your net income and basic expenses. 

 

$Amount -  Monthly Payment  - Interest Rate -  Bank Name - Last Payment

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I second that.  I declared bankruptcy for less than $25K and regretted it for the 10 years it was on my credit report.  It's better to let the loans go into collection than bankruptcy.  At 25, you don't have a lot of assets for companies to go after.   

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Briefviewofdebt.jpg

 

Thats basically a brief of it right there. The debt consolidation site that pops up pretty much gave me that. Fairly accurate minus the school loans. However I intend to pay back the school loans.

 

My current income is roughly around $1400.00 after tax. My expected spending per month for etc. is about 500. so what do you guys think?

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The snowball effect sounds like a great idea but unfortunately I might be too late. Because the last time I made a single payment to any account was probably 3 years ago. I haven't had a credit to use in about 2 or 3 years. Over all this time I've received lots of letter from collection company and such so I have no real idea to where I stand with these accounts. What should I do?

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If you have a credit union, they usually offer about 7%. Let's use that for sake of argument. A consolidation loan for $21,000.00 at 7% for 5 years would cost you $415.83 per month. That sounds possible with your budget and would get you completely current.

 

Good plan?

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That's why I asked earlier if you belong to one. They are way more willing to work with you.

 

Consider that you are not increasing your debt. You will still be over $20,000 in debt. This simply gives you a better interest rate, gets you current and makes the monthly more affordable. If you belong to a credit union it is definitely worth a shot. If not, talk to your bank. Do you have a good history with your financial institution? 

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Willing, would you ignore the Midland's as they are already in default?

If the original creditor still owns the account, I'd call them and see what can be done.  If the accounts have been sold...then I'd switch to JDB mode (go ahead, sue me,let's see you prove in court that I owe you money).

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I live in Washington state and there is a credit union that I'm banking with.  Have the account for awhile but havent used it much. As for my main bank account . Been with them since 2005 but they are the one I owe most to with credit cards and school loans.... this is so frustrating I just wanna get square even and be on good terms. I wanna rebuild my credit. I wanna regain the opportunity to apply for credit and such for the future. Regret the road I went down.

Edited by Amerikaner83
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I seen Midland show up a few times around the forum. Is that an actual collector company or is that just collection term. And yes I'm willing to pay if it helps rebuild credit. As for Midland ones I would like to take care of it if I could but since they are harassing me already I would like to fix the others before they're sent to collection.

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Talk to someone from your credit union. Just sit down and talk with them. The worst they can say is no. The first step here is always the hardest.

 

Every regret I've ever had in life usually has a great story to go along with it. Looking back gets you nowhere. Look forward and change your future.

 

Good luck needinghelp87! Let me know how it goes.

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I seen Midland show up a few times around the forum. Is that an actual collector company or is that just collection term. And yes I'm willing to pay if it helps rebuild credit. As for Midland ones I would like to take care of it if I could but since they are harassing me already I would like to fix the others before they're sent to collection.

 

Midland buys junk debt that original creditors have written off as uncollectable. Midland is the scum of the earth. Ask Coltfan1972 what he thinks of Midland if you have an hour to kill and need a good laugh.

 

They paid $.02 on the dollar for your debt and want to collect it all, charge you interest and attorney's fees. They would take your last dime, the shirt off your back and sue you for more. Don't communicate with them at all. If they do file a complaint, come back here and we'll help you.

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Briefviewofdebt.jpg

 

Thats basically a brief of it right there. The debt consolidation site that pops up pretty much gave me that. Fairly accurate minus the school loans. However I intend to pay back the school loans.

 

My current income is roughly around $1400.00 after tax. My expected spending per month for etc. is about 500. so what do you guys think?

 

So I'm guessing you have 20K in debt plus the student loans? If that's the case I would just concentrate on the student loans. At this point you don't have a lot of extra income and I doubt anyone will offer you a consolidation loan with a decent interest rate. Even if you could go this route you will be in an even worse situation if you lose your job.

 

You said that you haven't made a payment in three years, so you are half way to the SOL(6 years) for Washington state. The main thing is not to pay any of them one penny or you will restart the SOL. I have been in a similar situation and what you don't want to do at this point is panic. As I stated before filing BK will be on your credit report for 10 years and will stay on your public record forever. Then you still have to deal with the student loans.

 

If you are willing to fight and put a lot of work into it you will be in a much better situation three years from now. The main thing is to get past the 6 year SOL and then in seven years your credit score will be much better when the credit cards are off. Now here is what you need to do if you decide to take this route. It takes much more effort in the short term, but in the long run it can put you in a much better situation. 

 

1. Pull all three of your credit reports if you haven't already.  http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt156.shtm

   

2. You already have three cards with JDBs and the others may end up there soon. If you are willing to do a lot of research and fight then you can beat the ones "owned" by the JDBs listed above. If one of the OCs keeps the accounts they may sue, but three years ago most of them still had arbitration clauses. Check the date of your last payments to see if this still qualifies.

 

3. Buy an answering machine and a recording device if you don't already own them. Keep all messages stored on your computer and the dates they called. Do not talk to any of them. Only let them leave messages. Most of them will eventually screw up and that can give you leverage if and when you need it.

 

4. You can choose to continue ignoring their letters or start sending the JDBs validation letters. Read a lot of the information here by the more experience posters to make a decision on how to handle this. 

 

5. Research everything about the FDCPA and TCPA. All the information you need can be found on this site and many here can answer questions you have about it. When you have enough violations many attorneys will take your case without any money up front. Your goal is not about the money on these but to try and get the debt cancelled. Even if you get a 1099 you shouldn't have to pay taxes on the forgiven amount as long as you qualify as insolvent a the time.

 

6. Once again study everything you can here and don't be afraid to ask questions. So many people here are willing to help and most all are experience at one level or another. Take notes and be prepared to act as soon as anything is thrown at you. Some of these will fight you but the individual amounts are so small they are not going to take you to The Supreme Court on any of them. Learn how to deal with small claims court and/or arbitration and you have a great chance of prevailing.

 

You can make it through this without filing BK, but first you have to make a commitment to yourself. I am not an expert but I do have personal experience. In my opinion three years worth of hard work is worth much more than taking the "easy" way out that will stay with you forever. I only wish someone would have talked to me when I was your age.

 

Good Luck!

AV

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The thing is this is the first time ive seen midland in my credit report. never before. however i do have a few collection companys harassing me but didnt seen their name anywhere in my reports. i also did an annualreport and dont see midland either. im currently being sued for some credit card and they are trying to do soemthing like writ of garnishment

http://www.creditinfocenter.com/community/topic/318163-writ-of-garnishment-help/

thats the link if youre interested to take a look. I'm not even sure how to go about that but it sure isnt making me feel so good about looking forward. But however looking forward is the way im trying to look now that im trying to take card of things. I will take your advice and talk to the credit union.

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As for my main bank account . Been with them since 2005 but they are the one I owe most to...

 

Get your money out of this account Today and close it Tomorrow! Never ever have your money with a bank where you have a loan in default!

 

Use your credit union as your primary account and do not give any of these other banks, JDBs the account information under any circumstances. Many on here have had their accounts wiped out. They will do it no matter if its legal or not. Then you will have another fight on your hands.

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You need to go on-line and look at that case number. If you were served and have a default judgment against you, your situation has changed significantly from the top of this thread. Look up your case number and see what is going on.

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This is my first attempt to seek outside help and I have to admit i was ashame to come here. Look at my screen name. however you guys are being very helpful and I'm very thankful for all your advices. I will stick around for more advice and learn more as i go. There are terms I'm trying to learn as well. What exactly is JDB? I don't have a home phone is voicemail. however i reject all the numbers i don't know but they dont seem to leave me any messages. i've had one just asking me to call back but i never feel confident to. SOL gotta look that up too. I havent paid anything for a long while if not 3 its 2 at least. Either way i do sense it would be better than BK. However i came here because of the court issue i had and basically it was encouraging me to take care of the matter because I dont wish to get sued and be put down while i'm trying to get up. What I mean by that is I don't want to get hit by a surprise that could doom me.

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I will take care of that money situation. i was told to keep my money in a safe box. LOL. But I might consider that. Would it

be safer at my credit union? Because I need a place for direct deposit from work.

 

You need to go on-line and look at that case number. If you were served and have a default judgment against you, your situation has changed significantly from the top of this thread. Look up your case number and see what is going on.

 

I've tried searching for the case number but doesnt seem to exist. I don't know if maybe i'm not searching correctly but it doesnt show up.

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You need to go on-line and look at that case number. If you were served and have a default judgment against you, your situation has changed significantly from the top of this thread. Look up your case number and see what is going on.

 

I just searched by my name and apparently it is there. I also see a few others that relates to me.

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Any chance i could get a brief explanation of what this mean?

 

1 10-27-2011 SUMMONS & COMPLAINT Summons & Complaint   2 10-27-2011 SET CASE SCHEDULE
JDG0008 Set Case Schedule
Judge Jay V. White, Dept 8 04-15-2013ST 3 10-27-2011 CASE INFORMATION COVER SHEET
LOCK Case Information Cover Sheet
Original Location - Kent   4 11-16-2011 MOTION FOR DEFAULT JUDGMENT Motion For Default Judgment /pla   5 11-16-2011 AFFIDAVIT/DCLR/CERT OF SERVICE Affidavit/dclr/cert Of Service   6 11-16-2011 DEFAULT JUDGMENT
EXP0007 Default Judgment
Ex-parte, Dept. Seattle - Clerk   7 11-14-2012 AFFIDAVIT FOR GARNISHMENT Affidavit For Garnishment
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