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sillel

Small payments?

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Hello,

 

First time visitor/poster. Brief background for you...

 

For years I had been up to date on my monthly payments with all accounts until I became pregnant last year. 2 months into my pregnancy, I was removed from work entirely & placed on full time bedrest of the remainder of my pregnancy. I did not qualify for unemployment, disability or state assistance. Luckily I was in a position where I resided in an in law apartment of a family members home so I was able to get by for the remainder of my pregnancy with a roof over my head.

 

At 6 months pregnant, my prior employer allowed me to work from home for a very limited amount of hours per week, just enough to help supplement my income-that $ went to food,car insurance & my car loan. Therefore, with no substantial income for approx. 8 months of last year-my credit cards went unpaid. Throughout that time, I was up front & honest with all creditors & for the most part they were very understanding.

 

Upon the birth of my son, I was not able to return full time to work as daycare in this area is very very costly & would eat up my entire check. So I am back to work now but still not full time. I am in a position where I can pay my cards by very very small payments-we are talking probably $10 a month max.

 

I do realize they do not have to accept a payment such as this, especially at this point. And I do realize that consumer debt counseling is probably an option for me considering my amount of debt/income but I would love to be able to explore this on my own first.

 

My question is how should I proceed? I have pulled all credit reports & all but one card still only shows with the original creditor-charged off but still with them. I know I need to contact everyone but should I send something in writing & wait for a response? Or should I contact them via phone & speak with the hardship department & go from there?

 

Or in this case, do you think I might be best with a counseling agency working on my behalf?  I know I will not have any $ anytime soon to offer settlements to any of the cards so making payments is my only option.

 

Thank you & sorry for the length!

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Hello,

 

First time visitor/poster. Brief background for you...

 

For years I had been up to date on my monthly payments with all accounts until I became pregnant last year. 2 months into my pregnancy, I was removed from work entirely & placed on full time bedrest of the remainder of my pregnancy. I did not qualify for unemployment, disability or state assistance. Luckily I was in a position where I resided in an in law apartment of a family members home so I was able to get by for the remainder of my pregnancy with a roof over my head.

 

At 6 months pregnant, my prior employer allowed me to work from home for a very limited amount of hours per week, just enough to help supplement my income-that $ went to food,car insurance & my car loan. Therefore, with no substantial income for approx. 8 months of last year-my credit cards went unpaid. Throughout that time, I was up front & honest with all creditors & for the most part they were very understanding.

 

Upon the birth of my son, I was not able to return full time to work as daycare in this area is very very costly & would eat up my entire check. So I am back to work now but still not full time. I am in a position where I can pay my cards by very very small payments-we are talking probably $10 a month max.

 

I do realize they do not have to accept a payment such as this, especially at this point. And I do realize that consumer debt counseling is probably an option for me considering my amount of debt/income but I would love to be able to explore this on my own first.

 

My question is how should I proceed? I have pulled all credit reports & all but one card still only shows with the original creditor-charged off but still with them. I know I need to contact everyone but should I send something in writing & wait for a response? Or should I contact them via phone & speak with the hardship department & go from there?

 

Or in this case, do you think I might be best with a counseling agency working on my behalf?  I know I will not have any $ anytime soon to offer settlements to any of the cards so making payments is my only option.

 

Thank you & sorry for the length!

do NOT use an agency... I am new to this as well, but you can be certain that using an some sort of debt consolidation company would be a bad idea...I haven't heard a good outcome from one of them yet...

 

Payments will just renew your SOL, and $10 payments likely wouldn't be accepted anyway, and if they were, where will that get you?

 

That's all I got, maybe someone else will chime in.

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I also would never use those credit counseling agencies.   I had a friend who used one and they took her money and never sent any to the creditors!  I am not sure what your complete financial situation is, but maybe you should consult a bankruptcy attorney if your situation seems dire.  There is no fee for a consultation.  Even if you were paying very little amounts, you would be paying on these accounts for years to come! 

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Most definitely avoid the credit counseling services.  You won't get anywhere with those small payments.  Save up anything you could otherwise pay out.

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I suggest you save a small amount of money - the money you would be paying to a debt settlement company - until you have enough for a settlement.  At that point, you can make a lump sum cash deal with them.    

 

The complete procedure for doing this is here: 

http://www.creditinfocenter.com/debt/settle_debts.shtml

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What state are you in? Has the sol run out yet or close to it? paying any amount will reset that anyway not a good thing.

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