How do I deal with THIS? help me get out of debt?
I'm 24, one year left of college, working part time, I have no assets and I owe 17k to a credit card co. I've probably been called by more than one collection agency in the past year and a half since I stopped paying. So I have a couple of questions that would really help me in coming to the best solution. Should I just talk to the collection people negotiate for a lower settlement? Would I be able to pay monthly or would they require me to pay in full if they take a reasonable amount off the debt? Or should I call the credit card co directly and talk to them? What would I say to them, negotiate ? I can't afford more than $150 monthly, at least not until I finish school...but they wouldnt take that into their calculations, would they? I've heard stories that people continued to pay like $1 towards the debt...would I be able to do that? thanks a lot
Public Comments
- Stay away from debt consolidators, most are rip offs. Work directly with the credit card company. Call and tell them, here are the choices I have to offer, number one - stop the fees, lower my interest rate and i'll give you 150 per month until i get a job. I have no job now. Option 2 - go ahead and sue me, get the judgment i'll file for bankruptcy - i have nothing anyway and you get zip. Then tell them, take your pick I don't care which one, but give me your answer now. Then, don't do this again - you never should have gotten into this much debt - be more responsible. Good luck
- "Got it" doesn't have it regarding an answer for you. If you declare bankruptcy the laws have changed. The debt does NOT get magically erased like in years past. You have to repay the debt and financially your hands are tied for a few years. Not the way to start after schooling. You would do better to try to negotiate with the credit card company directly. Normally they will negotiate for monthly payments. They want to get repaid for the debt you owe. Collection agencies get there money by a percentage of what they return to your creditors on your behalf. It is not in their best self interests to negotiate a lower payment. For future reference don't ever just stop paying your debt. It won't go away that is just not very bright. The stories of people paying $1 towards the debt are fairy tales. It will go on your credit report as late payments and drop your FICO score by 100 points or more directly affecting your ability to get credit, and the interest rate. I watch the Today Show's "Money 911" segments and their experts recommend this course of action: http://today.msnbc.msn.com/id/30216137/ Follow the link to www.NFCC.org National Foundation for Credit Counseling. For a small fee they will advocate on your behalf. Learn from this huge mistake and use credit judiciously in the future. I am curious as to why you stopped paying if you had $150 monthly to repay? Best of luck to you. Hope this info helps.
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