What should I do with my 22k of debt????

Question

I'm a single mom whoms income just covers my bills. My credit cards are SO far in collections (over a year) that they only want the full amount paid in full. Since I can't pay the full amount I've seemed to just let them go, which has only made things worse. At this point what would be the best option? Why?

Answer 1

If you do not pay them then you need to take what little money oyu have and change your phone number. They do not accept arrangement unless you have half up front. Dealt with this in the past. Credit counselors have specifically told me that the best thing I could do was just to forget about them and wait for 7 years when they will be removed from my credit file.

The reason is because if you make arrangements now and then are unable to follow through then it reverts the file to being open again and then you have restarted the account to where it goes back into collections and then restarts the waiting period for the seven years.

THere is another waiting period ivolved as well. SOme creditors have the legal right to sue you for the amount you owe. There is a period of several years and then the time frame closes and they cannot sue you for the balance. If they are past their term the statute of limitations has run out. The time this time frame starts is from the last conversation they had with you.

http://www.creditinfocenter.com/rebuild/...

go to this link and look up your state to see when the statute runs out for your state and credit debt. It also has valuable info for what to do in your situation.

Hope this helps......good luck. :)

Answer 2

1) do NOT pay the credit card's debt

2) buy a prepaid cell phone as a mean to communicate; put your house phone on recording, MUTE (use someone ID to buy the prepaid T-Mobile  phone if needed be - so no one can search - remember that if spent $100 prepaid, it has no expiration date. Use this cell phone for discreet communication; use house phone to call out)

3) remember that credit card debt is not secured. You will have bad credit; but SO WHAT.

4) hang on to your cash, safely.

Looking up in life;

bad time will pass, sooner or later.

But surviving must be the first.

clear?

Answer 3

if they are in collections the best thing to do it file bankrupsy, and wipe the whole debt away asap! then yo can start over with new credit! you cannot fix your credit anymore w/o bankrupsy

Answer 4

Keep one good credit card for extreme emergencies and cut up all the rest.

Put food on the table, transportation and a fully functioning roof over your children's heads -- before you tackle your debts.

Take the father of your children back to court for more child support.  While there increase his childcare work load so you can be free to get a second job.

A good second job is something you can work at evenings and weekends, preferably a tipped position like valet parking or bar-tending.

Time to call all loans and to collect on any money owed to you like loans to family and friends.  No matter how small, it all adds up.

Find and claim your lost money from life insurance policies, abandoned bank and savings accounts, security or utility deposits, forgotten paychecks ...  Most US State websites have a "claim your lost funds" link.

Take in boarders if you have the room.  Buy all your clothing and household goods at your local thrift shops.  Buy food at 99 cent only stores and Walmart.  Make use of your city library, pool and other free public resources.  Carpool, pack your lunches, get a coffee thermos, babysit ...  Like you aren't already doing that.  :)

Ask your parents or family for a loan to cover your credit card debts.  Then cut up your cards.  -- Crossing my fingers on that one for you.

Maybe you can find this book at your local thrift shop:  The Money Book for the Young, Fabulous & Broke By Suze Orman

Answer 5

Try a debt settlement program, as the debt counselors are the experts in the field and more often they have contact with the creditors. Thus they can negotiate with them and would be able to reduce your debts upto 50%. And provide you with an affordable debt repayment plan.

Here is the source of a debt consolidation company http://ezconsolidation.com for your reference who offers debt settlement plan.

Answer 6

Call a debt consolidation company. I did before I got in the hole. You make a monthly payment to them, while they pay your creditors. I have the one that opens a savings account, once there is enough money to pay one of the creditors in full they pay it and so on until there all paid I had about the same amount of debt as you will be done paying in 2 years instead of 15 years. I recommend you call around and see which would be your best option because they all do different things but all help you get out of debt. Best of Luck.

Answer 7

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Answer 8

Offer arrangements, get them in writing and stick to them. Be certain you don't do this again.