I think you’re doing the best you can with what you have. If there’s nothing else to be done then you have to just let them deal with it however they will. I mean that in all seriousness, if you are taking the money you have available and paying them as honestly and fairly as you can then let yourself off the hook about that “they” want. “They” want to be paid in full, “They” want you to feel intimidated every time they call, “They” want to control the situation. However, you just do the best you can and let them deal with it.
Just make sure you keep in contact with them every 2 weeks and don’t stop sending those small payments once you’ve started. Once you get your bonus and settlement then you can look at a lump sum settlement but I wouldn’t tell them that now. Once it’s in the computer every idiot collector who calls you is going to hound you about it. Each creditor is going to want the whole pie and not a settlement so that others can get paid too.
Good luck and don’t let the bastards get ya down! 😉
I am just about to begin sending allotment payments. The last time I made a payment was about 5 months ago.
I’ve calculated my total debt, divided the amount owed to the creditor by that to come up with a percentage. Then I’ve taken the total amount I am able to pay towards my debt at this time and multiplied it by that. This is what Dave Ramsey talks about in his book.
The amounts that I am paying are very low in comparison to the actual payment required but it’s something. I’m expecting a bonus and a settlement so I was hoping to use those to pay off some of my debt by offering a settlement to the company.
For example, my balance on one of my credit cards is $10,000. Does anyone know how much the average company will take?
Do you think the minimum that they would accept is 3/4? 1/2?
I heard it depends on the length of time since the last payment. Somewhere between 1/3 and 1/2 of the balance is normal if it’s less than 5 years old but older than 1 year. If it’s older than 5-7 years you should be able to settle for ~1/4.
I think you and I are actually saying the very same thing 😉 So we can quit complimenting each other on our extraordinary taste and common sense..lol
I personally would NEVER recommend that someone use a debt settlement service. However, if someone feels that’s their only option, they should at least use the lesser of the evils. CCCS has a fiduciary responsibility to actually pay the bills where most debt collection companies don’t. I’m not advocating them, just mentioning the facts.
They still suck, but it’s more like a Hoover vs a Dyson.
The first thing you need to do is get rid of the idea that you need to have credit and that your credit is ruined. Both are so far from the truth it hurts.
Like many (and myself) I fell for the idea (trap) that you have to have credit to do anything in life. I found out the hard way, like you are doing now that that is a just a bunch of poopoo. Its a PR line created by the banks.
Banks have only two agenda:
Figure out every way possible to put you in debt; and
Figure out every way possible to keep you in debt.
It is just that simple. They have only one legal responsibility and that is to make money for their shareholders. You are definately not a repsonsibility for them.
Now as to our options. You there 4 major options you need to look at. But which one you choose has many varibles. It really is determined one what you are more comfortable with and what you can afford. But biggest requirement, and the one that ALL your decisions are based on is: You need to put a roof over your head and food in your belly for you and your family.
The options are:
1) Consumer Credit Counseling. This option is only workable if you can afford 2.5%-3% for a minimum payment. In other words, if you can’t afford minimum payments now, then this NOT the solution to you – unless you can budget effectively to be able to afford it. More in this video:
2) The “Snowball” or “Roll-up” methods. Same program different name. Basically this is good if you can budget minimum payments plus at $100 or more a month for the bills. If you can’t do that, then this is not your best method.
3) Debt Settlement. If you can’t do Consumer Credit Counseling or the “snowball” method then this is the last option before bankruptcy. There are three different types of settlement. There is a) the front fee based companies, b) the performance fee based companies, and c) doing it yourself. Try the performance fee first, but if you can’t afford that program then try the more extreme version which are the front-fee based companies, and if neither of them are good for you then doing it yourself may be the best option.
4) The last option is bankruptcy.
Don’t fool yourself. Every option has its pros and its cons. 3 out of 4 will harm your credit in some way.
Research the companies thoroughly and choose your best option.