settle credit card debt

[blackdust]

I need to settle all of my credit card debt. I am a full-time student with two children and a wife. I have 5,550 in debt. I only have 560 dollars a month to live on. Where do I start?

[sr383]

$5, 200 in available credit, and $5, 500 owed? :-o

[blackdust]

Yeah/ I am 22. I will get pass this. My wifes credit is good! I have read diffrent reports as to when I can settle on debt. Some say settle with orginal creditor and other say wait until the credit is sent to collections. I have no job. My familys car is in my wifes name and our trailer is in my wifes name. So I dont think they can sue me when I dont have anything. I am wanting to settle for 10 - 40 cents on the dollar. Any advise?

[sr383]

Original creditor is always best. But if the delinquencies are recent (less than 12 months), I don't expect that they'd be too willing to settle for such small percentages.

I think the overall amount owed is too small to bother with bankruptcy.

The best scenario I see is that:

1. You chose a major that will pay well, so it's all worth it, in the end.
2. You get by for the next few years, dealing with a murderer's row of collection agencies that try to intimidate you into paying.
3. You come out the other side with a decent income and start tackling these debts, working with original creditors, in some cases, and with collection agencies, in others. Because the debt will be old, settlements may be possible. But you may find yourself in a position to offer to pay the full amounts in exchange for having the delinquency removed from your credit reports.

Best of luck!

[Luscher]

whats your credit score? transfer that balance to a 0 percent interest card like slate.....you might not be able to if you have real bad credit which im assuming you might at this point. Otherwise your gonna have to cut back on spending or get another job to help.

[CEOriginal]

I would post in the Rebuilding Credit... Those guys are awesome over there and they're great help!

[djc1puno]

Try calling you creditors and see if they can help you out w your situation...I would ask them first if there's options for you before even letting them go to collections. W your financial and family, it's definitely difficult to make a dent on that debt...I'm sure youve got young kids based on your kids do obviously your available finance would go to them and rightfully so...wishing you the best!

[djc1puno]

*I'm sure you've got young kids based on your age so obviously your available finance would go to them and rightfully so...

Edited for grammar spelling...damn phone

[phillyguy12]

this will prob get moved to the rebuilding section but, don't fool yourself they will eventually come after you if you don't pay if you dont have anything they can get judgements against you, which will come back and bite you later and or garnish your wages when you get any sort of job. i burned my share of credit  bridges. i would suggest you call them and attempt to work somthing out i think its unlikely they will settle right out of the gate for anything that low, but they rather have something from you rather than nothing. if you do decide to let them throw you to collections be prepared for lots of calls and letters and find out the collections rules and statue of limitations in your state as they can vary. personally the only creditor that actually started legal action was captial one the rest charged off  and sold to collections and they passed it around, one also did cancel debt and 1099ed me, that might be an option for you but know if they 1099 its taxable income, and could complicate your tax return sit.

[blackdust]

I have about 2,000 I put torwards my cards at the end of the month from my student loan. So I do not have a chance to settle on any of my accounts? I know I could get a lower intrest rate or no intrest and lower payments but I want to rid of these cards as fast as possible.