Take a few lates or try settlement?

[creditninja9000]

I have a large amoount of debt after just finishing school and not all of it is student loans, a little less than half is CC debt as well.

I'm having trouble keeping up and I'm about to get a few late payments and I'm wondering if I should just let them be late a few months and try to settle. I think it could save me around $20000 even after calculating in the taxes I may have to pay from 1099c, unless anyone knows a way to get the creditor not to issue those.

So I guess my question is should I do this or try really hard to just get back on track and pay it all off.

[baller4life]

If at all possible I would try to work really hard to get back on track and not take any lates on your CRs. Remember,any thing later than 30 days will be reported late. Save your credit if at all possible. Lates are hard to get removed.

[coterotie]

Be very careful here.  Many employers will run a CR and if you seem to be having financial problems you won't get hired.  As an example, my wife works for a university and they won't hire people with bad credit. Even for positions like groundskeepers and carpenters they run a credit report.  Now after you have been hired they won't run a bureau, but other employers might as part of a periodic review.  This is a very poorly regulated and monitored area of employment law.

What you might want to do is see if you can get them to reduce payments etc. without it impacting your timeliness until you can get a second job or sell some assets to pay them down.

Will your job support your student loan payments?  If not, then you will need to figure out a way to get a forbearance etc.  There are some resources here to help you with this.

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@mekmek86 wrote:

I have a large amoount of debt after just finishing school and not all of it is student loans, a little less than half is CC debt as well.

I'm having trouble keeping up and I'm about to get a few late payments and I'm wondering if I should just let them be late a few months and try to settle. I think it could save me around $20000 even after calculating in the taxes I may have to pay from 1099c, unless anyone knows a way to get the creditor not to issue those.

So I guess my question is should I do this or try really hard to just get back on track and pay it all off.

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[creditninja9000]

I just got a new job but I'm not too happy there, so I maybe look for another in the future. But you're right I don't need any negative marks, even if it means struggling for the next year I guess.

[irrational]

Don't do it!!!!

You're playing with fire. Some creditors are more than happy to transfer to collections very quickly, collections for the OC will not negitate with you in general.

If you truly cannot keep up with your bills, call and tell the CCCs as much. Ask if they can help by changing due dates, lowering APRs, maybe even deferring a payment or something.

Once it goes to collections, even with the OC, they're more than likely interesting in settling for a lump sum. Debt collectors don't care about your money flow problems, they want cash.

Good luck, but REALLY don't do this. Also, as others have said, employores these days DO run credit checks. Even in IT, for non-government/financial work.... so, don't think you're profession is immune to this un-ehtical practice.

[titanofold]

You must talk to your creditors. Often they have means to help an individual who is suffering some financial hardship. You just need to talk to them. The worst that'll happen is they'll say they're sorry they can't help you.

[guiness56]

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@mekmek86 wrote:

I just got a new job but I'm not too happy there, so I maybe look for another in the future. But you're right I don't need any negative marks, even if it means struggling for the next year I guess.

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Talk to your creditors.  You would be surprised how they will go out of their way to help you.  Whatever they do, make sure you ask them if you will be considered late with the arrangements you make. 

[creditninja9000]

yeah i talked to some of them one wanted to close the account, and they would have the payments for 6 months then double the payment until payoff. Which is actually worse then just paying down and the monthly payment going down with it....lol

go figure.