So confused!!!!! Please help me figure this out...???

[Anonymous]

Ok, so I have made a few posts about my current situation today...here is the link.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=76456#M76456

Now after reading many topics today that seem to sound similair to mine I have began to stir up other questions in mind.

It seems to me that everyone on this forums is very gung ho about trying to do everything by yourself. Believe me I would really love to try to do this alone but I do not have the time or to be quite honest I'm not very confident that I have the strength and will power to expect to get it done correctly on my own. If you read my thread above i am current with all of my creditors right now and has never been late. I know I cannot pay this massice amount of debt off and I am trying to get away from bankruptcy. How does one do this on their own? Do I just stop paying the creditors now and wait to go into collections and ask for settlements? This is what my debt settlement company is going to to do and I feel pretty comfortable with their knowledge and through a few referrals that they can get the job done but I dont understand how everyonr on the forums claims that I can do this on my own. I was really hoping to hear some feedback but I have yet to hear anything on my current situation. I dont mean to sound so impatient but the first payment to my debt settlement company is due tomorrow...the nice thing is that it doesnt go to them, it goes into a seperate checking account that I have complete control over and when the funds get to a certain peak and the company gets a settlement from one of the creditors they notify me and I write the creditor a check from that seperate account.

Someone please just shed some light on my decision here. I havent been able to sleep good at night for a long time and I have a very good job that pays well and I need to stay focused at work in order to kee the job but this is always in the back of my mind.

[braznyc]

Yes, the majority of members on here are all about "DIY" doing it yourself, and rightfully so! I have done everything to repair my credit with the help of these forums, and members who are well informed. I have written letters, gotten things removed, paid off things, and anything I couldn't I made calls and worked-out plans directly with those creditors, my score went from the low 500's to the early 600's and with time, patience, and rebuilding I know they'll slowly be back where they use to be.

I have never read anyone on here advocate for someone to stop paying their creditors and to wait on collections. It's far more work if you do that(imo), because you'll not only have to do deal with CA but with derogs on your CR, which is time consuming to get removed. I have no experience with debt mgmt companies, but I'd be personally weary of anyone telling you to wait until you go to collections to pay, again if you've never been late.

If I were you I'd call all my creditors and explain my current financial situation, and see if anything can be worked-out. The one thing I kept being told back when I had excellent credit is I should have spoke to my creditors rather than just giving up and going to collections.

Can you share specific accounts. The members here are great with specific information, so that you don't get general answers.

[Anonymous]

So what are some general possibilites I may have to work with the creditors? My next payment is due at the end of this month and I have the funds to pay at least the minimum payments. Negotiatiing to lower my interest rates are not an option because they are all on low balance offers right now so i's technically going to get worse once those offers expire. I would be more than willing to do this on my own if I have heard some success stories like my current situation. My only question is why would a creditor be willing to settle with me while I have been paying them on time every month? I have never been late but I just cant see this situation getting any better. It will take me almost 10 yeares to pay this debt off even after interest has been negotiated.

Here is my current situation:

Bank of America : $34,000

Amex                   : $11,000

First USA            :  $10,000

Discover             : $13,000

[Anonymous]

Can you do it on your own - yes.  Do you have the discipline to do it - that is your call. If not then perhaps a program can help --- but in the end it is YOU  that needs to change the decisions you make.

You are carrying more CC debt than both my DH and I combined - I say this to make a point because we have high 9 low 9 figure assets.  Our total debt on cards right now is less than $16K - and that's because we have been shopping for things for a new house - all of which will get paid off as the statements cut for the next billing cycle.

The absolute first thing you need to do is put your CCs in the deep freeze (not just the sockdrawer!).  The second thing you will do is evaluate how you got yourself to this point and where you spend your money - because THAT has to change.  BTW, we did not get to where we are by spending money (especially money we didn't have) - but by living frugally and investing wisely (okay we did take a hit on Enron - bad call there).

Yes, I am telling you to buy something - either Quicken or Money -- and track everything you purchase because you will learn where your money goes and where you can make cuts.

If you feel you need someone to be 'responsible' to - then yes a program will help - but only if you don't repeat the same mistakes.  no yo-yo indebtedness (think yo-yo dieting).

Message Edited by Lady_Scarlet on 02-15-2008 05:54 PM

[Anonymous]

I agree with the resposibilities that I have to make. A lot of the debt happened from an unfortunate event that happened right after I purchased my first home. I have made all the sacfrices I can posibly make and still find myself in the whole everytime.

here is a link of my other thread that explains my current situation and expenses

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=76481

[Anonymous]

I am going to go read your other thread right now, but I just HAD to say first: PLEASE do not stop paying your bills. Please do not let a company encourage you to do that. Ultimately it will cost you more, not only in fees but in terrible credit and high interest on new accounts. What if your engine blew up tomorrow and you had to buy a new car? What would a car loan with 30% interest cost you? (an exaggeration but you get my point) I'm gonna go read the other thread and then I'll see if I have any other ideas. I actually got a chill when I read that you were considering going into default on your loans in order to get rid of them. ACK! there must be another way. We will all try to help.

[Anonymous]

ok, I still think that letting bills get behind and getting settlements that way is a bad idea (just my opinion, not a criticism). I think that going through a reputable debt management plan would be a good idea, as long as they focused on PAYING the bills, not DEFAULTING them. This won't really be an option for you until your promo rates expire, but the minute they do, I say that is step 1. Then I wonder if you looked around the garage or something if you could find a few items to liquidate. When your family moves out, perhaps you can advertise for a roommate. The P/T job is a good idea too. You may only have to do it for a few months to make a BIG difference. I have been in a situation similar to yours. Not as much debt, but still not making enough money to pay all bills. It stinks, but you can do it!

[Anonymous]

I guess I'm looking at it at a different point of view. My current credit score is 654. I would be willing to ruin that score for the if it would be able to save me approx $30,000 in debt and also get me out of debt in only 3 years. If I take it in my own hands it could take me approx. 8-10 years. If I use a DMP it will prob take me 5 years and affect my credit score anyway. I make a decent income to cover me if I get out of debt quickly. I would assume if let the credit take the hit for this long I would have enough income to rebuild it for the next few years after that. Please correct me if I'm wrong but this is the only way out I see without filing for bankruptcy.

[Anonymous]

You're right your view is different. I'm looking at it from a credit health standpoint, and you are looking at it from a money-saving standpoint. Ultimately it's up to you what the best answer is. Whatever you decide to do, I hope it turns out exactly the way you need it to. It sounds like you're really concerned and that's never a fun place to be. I know you will get a lot more feedback on these forums and perhaps there will be someone here who has a great idea to help. In any case I wish you the very best of luck with whatever road you take.

[bamagirl1]

LT-

no disrepect but it looks like you already have your mind made up, so why are you asking for opinions on here you ultimately have to make the decision and live with it..good luck!