Why Does Credit Counseling Drop Us When We Can’t Make The Payment. – Tracy
Tracy wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form . I’m happy to help you totally for free. Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty . If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help . “Dear Steve, My husband and I are self employes and dont make a lot of money.he use to have a steady job before being laid off two yrs ago..we tried consolidating our debt and were kicked out of the program because we couldnt afford the monthly payments..now creditors are calling all day and I dont know what to say..we arent in a position to pay anyone right now..what is going to happen to us? What do we do now and what actions can the credit card companies do to us? Tracy” Dear Tracy, A credit counseling program will drop you when you can’t make the payment because you become a liability to them. When your monthly minimum payment is not enough to satisfy the creditor wishes then the credit counseling program has no further use for you. When they say it’s not about the money, guess what, it’s about the money. It is time for you to find a local bankruptcy attorney , pick up the phone and call to make an appointment for a free bankruptcy consultation . This is not going to get better without intervention or a sudden increase in income. Bankruptcy will stop the calls and end collection attempts. It will close the door on this unmanageable debt for ever. Sometimes the hardest thing to do is the right thing. Big hug. Steve @GetOutOfDebtGuy Source: Why Does Credit Counseling Drop Us When We Can’t Make The Payment. – Tracy Other Related Articles to Read How Do I Handle the One Creditor Not in My Debt Consolidation Plan That is Suing Me? – Tony Bad Credit Debt Consolidation – Brutally Honest Advice How You Can Get Out of Debt Fast Without Filing Bankruptcy I’m Enrolled in a Credit Counseling Program And Thinking About Dropping Out and Paying Creditors Myself. – Wilder I Want to Repay My Debts But I Can’t Stop Using the Credit Cards. – Bonnie Tweet This! Email this to a friend? Stumble upon something good? Share it on StumbleUpon Share this on Facebook Share this on Linkedin Seed this on Newsvine Share this on Technorati Share this on Tipd
I Am Working With Debt Settlement America But Now I’m Getting Sued By My Creditors. – Bee
Bee wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form . I’m happy to help you totally for free. Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty . If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help . “Dear Steve, I was divorced in 1999 after 21 yrs of marriage and 2 bankruptcys with my ex, Since then,I have bought and sold 3 houses and purchased 3 brand new vehicles and re-built my credit. I had my credit cards current but didn’t feel I was getting anywhere, even tho the payments were always made on time and usually more than the mininum, I was getting nowhere on the balances. So I contacted Debt Settlement America and was told to stop making the payments and they would work with my creditors while I paid them every month. Then I started getting summons served on me. DSA was unable to do anything for me so I stopped paying them. I have almost 26000.00 in credit card and personal debt. I have consulted a bankruptcy attorney , but I really don’t want to go that route. How can I negotiate with my creditors or should I just file bankruptcy for the 3rd time in my life. I don’t think DSA was any help to me at all, all my credit cards were current until they told me to stop ,making payments, now its been over a year and i can’t catch up on the payments that include more interest and late fees? What do you suggest? Thanks Bee” Dear Bee, I think you’ve fallen into the negative pit of debt settlement . Getting sued while in a debt settlement program is not that uncommon. And being told to fall behind on debts while entering a debt settlement program is not unusual at all. Creditors reserve the best deals for people that are behind and demonstrate they can’t pay. If you have the cash on hand to offer the creditors at least 50% of the balance you owe, you might want to contact them yourself. Just remember, that you won’t be out of debt unless all agree. Some might take 20% and some may not be willing to reduce your debt at all. Right now this is a mess. You could click here to try a debt management program and see if they could get you a monthly payment you can manage, otherwise, I’m afraid that back to bankruptcy is the route you’ll have to take. I did notice that Debt Settlement America brags on their site about winning The Association of Settlement Companies (TASC) 2007 President’s Award for excellence. TASC is always going on about how great their members are so maybe TASC can assist you to get some straight answers from their award winning member that seems to not be providing you with good service. The Association of Settlement Companies 16 N. Carroll Street, Suite 900 Madison, WI 53703 888-657-8272 (TASC) 888-482-3791 Fax info@tascsite.org Big hug. Steve @GetOutOfDebtGuy Source: I Am Working With Debt Settlement America But Now I’m Getting Sued By My Creditors. – Bee Other Related Articles to Read I’m Doing Debt Settlement and Getting Sued by Chase Bank. – Darlene I Got a Court Summons for Credit Card Debt. What Do I Do? – Denise My Mother-In-Law Does Not Want to Go to Court. – Candy I Owe American Express and I Am About to Start a Debt Repayment Plan With Money Management International. – Shelley I’m Going Bankrupt. How Long Until Bank of America Sues Me? – Mary Tweet This! Email this to a friend? Stumble upon something good? Share it on StumbleUpon Share this on Facebook Share this on Linkedin Seed this on Newsvine Share this on Technorati Share this on Tipd
Holy Crap. Chase Minimum Credit Card Payment Goes to 5% of Balance for Mary.
Mary wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form . I’m happy to help you totally for free. Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty . If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help . “Dear Steve, My husband and I have credit card debt of $ 87,000 and medical bills of about $ 2,000. The credit card int. rates vary from 2.99 to 9.99%. We have 2 teenage children. We own a mobile home and a couple acres but don’t have much equity in it. We both have fairly good jobs and have paid our bills on time up to this point. For years I did some part time work in addition to my regular job but 6 months ago I lost that income of about $400 month. Since then we have used the credit cards on quite a few occasions to pay utility bills, phones, dr bills, medicine or whatever on months that we couldn’t pay everything. We just developed a budget and have cut about $150 month in expenses for things we really didnt need and are working on trying to cut more. We are also trying to sell some small personal belongings but that will only bring in about $2,000 at the most, assuming we can even sell them. We wanted to put this money in savings. I am looking for addl work to replace the $400 mo I lost. Right now we are just able to pay our regular bills (house, cars, utilities, ins, groceries, gas, etc) and the minimum payment (or a little more) on credit cards. We are not able to put any money away for savings for things that come up so I dont know how we will pay those things other than using a credit card. Two days ago I received a letter from Chase on one credit card saying the min pymt is going to 5% in August – this will make the pymt on that card go from $250 mo to $625 mo. We are considering selling my husbands truck to save us $300 month to pay this difference. However, we have 3 different cards with Chase so if they all go up we will be looking at owing an additional $850 month. If all our credit cards go to 5% minimums we will owe $2,500 mo in additional pymts on credit cards. There is no possible way we could ever come up with a way to pay that. My husband is able to retire at end of this year and was planning on retiring then (assuming he is able to get another full time job). We were planning on using his lump sum distribution (about $40,000 after taxes) and the monthly checks (about $800 after tax) to pay off our cars and our mortgage to get to a point where we could breathe. At this point however we really dont know what to do. If our card min payments all go to 5% I guess we will have no choice other than to file bankruptcy because there is no way we can make those payments. This is causing extreme stress on our lives. I dont even sleep anymore unless a take sleeping pills. I am constantly worried sick about what we are going to do. I have a medical condition, Multiple Sclerosis (a big part of the credit card debt) and all this stress just aggravates that. We have got to come to some resolution and proceed with whatever we are going to do. We just dont know what the best solution for us is. We really dont want to file bankruptcy but if that is what we end up having to do I guess that is just the way it is and we will have to live with it. I would appreciate your opinion on where we go from here. Should we just file bankruptcy or will anything else work for us? Mary” Dear Mary, Selling things to fund yet another month without it resolving the situation is not a solution. It helps you to avoid making the hard choices but it does not resolve the underlying problem. With Chase Bank raising your monthly minimum payments to 5% of the outstanding balance it leaves you in a position where you can’t recover. You’ve been using credit to make ends meet and that strategy will fail. Sadly, I think the best course of action is for you to immediately find a local bankruptcy attorney and go in and talk to them about bankruptcy for you in your situation. If you go bankrupt now you can protect the retirement funds, can discharge the debt, can eliminate the underlying stress and that should begin to slowly improve your medical state. Based on the likely prognosis for your situation, after meeting with the bankruptcy attorney you should probably stop making any additional payments on the credit cards and save that money to go bankrupt. Unless you take the action of intervening in your situation with bankruptcy it won’t be long when you will be without anything to sell, not in good physical shape to work, won’t be able to afford to make ends meet, and in need of your full retirement funds to take care of yourselves. While it might not feel like it at the moment, in the face of an almost certain disastrous outcome, bankruptcy is the logical and responsible action to take. Big hug. Steve @GetOutOfDebtGuy Source: Holy Crap. Chase Minimum Credit Card Payment Goes to 5% of Balance for Mary. Other Related Articles to Read Chase Put a Hold on My Bank Accounts and I Can’t File for Bankruptcy. – Gina Expect Tidal Wave Of Limit Reductions and Credit Card Closures to Hit Before Christmas Brenda Writes The Squirrel Asking For Advice. Is She Nuts! I Cosigned for a Car Loan and that Person Went to Jail. Now I Have to Pay it. – Noname I Filed a Chapter 13 Bankruptcy But Now it is Getting Dismissed. – Laketia Tweet This! 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