topic I think I'm heading for the underground. in General Credit Topics

I think I'm heading for the underground.

Anonymous — Wed, 16 Jul 2008 20:09:12 GMT

Been working on Ficos for exactly 1 year. Some good, some not so good. My FICO will improve as I pay down balances, and a couple o' ancient baddies fall off early next year. But I digress!

It's my DH.

He's with CCCS, payments are over $1k a month, and looking at the statements, yeah. Balances are going down, but so little that I seriously wonder if working two jobs and scraping by on nothing is really worth it. We've paid in over $6k, and the balances are down only about $2.5k. Not that CCCS is doing anything wonky, it's just really large balances that are accruing interest, albeit less interest, that are keeping the balances so high. And he has 3 1/2 years to go. Additionally, we have a 4 year old Ford Focus that I'm having towed home today that needs $1400 of work just to make it driveable, and he is upside down on the loan. So, can't sell it, can't trade it, can't drive it. And it's a Focus, so doubtful anyone would steal it. Just kidding. Sort of.

On top of all this, we talked with a bankruptcy attorney, and if we filed CH7, we would lose the house that we currently have people buying from us with a contract for deed. So they would lose their house, and that is not acceptable to us. If we file CH13, our state requires that all payments are made by wage assignment, and DH works for his parents, and believe me, having his wages garnished would cause an irreconcilable split with them. And he's an only child.

I don't feel sorry for myself, or my DH. Two extremely tough and expensive divorces between us, buying a house that was just a little over our means, and just life in general. I don't slough off my responsibilites, but man it's just so overwhelming and every day it seems like car trouble, medical issues, or some random expense that keeps us treading water. For example, I got a certified letter from the IRS today, and it wasn't a "Thinking of You!" card. Sigh.

I understand why people just say "The heck with this noise" and just let everything go. I'm totally there.

Please know, my fellow FICOnians - not looking for sympathy. Just wanted to get a little off my shoulders.

Thank you.

Re: I think I'm heading for the underground.

smallfry — Wed, 16 Jul 2008 22:17:31 GMT

What is you total debt? Outside of the mortgage? What interest rate are you paying on your late credit cards? You are paying 6K and only getting the principal reduced by 2.5K a month? Something doesn't sound right. Did your try the hardship programs with the card companies themselves? You can do better than your current plan and I would consider doing that.

Re: I think I'm heading for the underground.

granny031350 — Wed, 16 Jul 2008 22:32:38 GMT

you should talk to a bk attorney or 2 or 3 also just so you know where you would stand and what you could and couldn't do. I believe that one of your questions would be if you can make the trustee payments directly. I know I can. (Michigan) but beside the point, I would explore all options and then plan out a course of action.

Re: I think I'm heading for the underground.

Anonymous — Wed, 16 Jul 2008 23:08:17 GMT

smallfry wrote:
What is you total debt? $44,251 unsecured, owe about $8700 on car.Outside of the mortgage? What interest rate are you paying on your late credit cards? Different cards gave us differing rates. For example: BofA ~ one card was at 32%, reduced to 16%The other was at 28%, reduced to 14%. So they cut the interest in half. Some others are at 9 - 10%You are paying 6K and only getting the principal reduced by 2.5K a month? No- payments are $1062 per month. The original balances in October 07 came to $50,155. Paid in $9,502 from October thru June 30th. So of $9502, $5904 went to principal, $3600 to interest.Something doesn't sound right. Did your try the hardship programs with the card companies themselves?Yeah - BofA suggested CCCS... You can do better than your current plan and I would consider doing that.

Re: I think I'm heading for the underground.

smallfry — Thu, 17 Jul 2008 00:00:37 GMT

At this rate it looks like it will take 7 years to get clean. I would see about a couple of free consultations with a BK lawyer or 2. Good luck.

Re: I think I'm heading for the underground.

Anonymous — Thu, 17 Jul 2008 00:14:20 GMT

smallfry wrote:
At this rate it looks like it will take 7 years to get clean. I would see about a couple of free consultations with a BK lawyer or 2. Good luck.

No can do on a BK for the reasons in the original post.

Re: I think I'm heading for the underground.

Anonymous — Thu, 17 Jul 2008 02:10:17 GMT

Can you pay extra a month directly to the CC? You may want to try paying like that if possible. What is CCCS charging you to do this? You may be able to do it on your own without paying a fee. (Not sure if you can reverse it though, I don't know anything abou CCCS) Have you tried calling the backdoor numbers or calling CCCS about getting those interest rates even lower now that you are paying on time and paying down your balances?

Re: I think I'm heading for the underground.

marty56 — Thu, 17 Jul 2008 09:34:56 GMT

Just a heads up but if you have BofA products in a CCCS program, BofA will drop you out of the program if you obtain more credit while you are in the program. That happend to me and I have a 120 day late as a result on my CR.

The BofA intrest rates sound high. The were 10% for me whenI was in the program so I would call the CCCS first and if they cant get BofA to lower them, I would call directly.

Re: I think I'm heading for the underground.

smallfry — Thu, 17 Jul 2008 09:45:14 GMT

OP I would get back in touch with the IRS immediately.

Re: I think I'm heading for the underground.

MattH — Thu, 17 Jul 2008 10:45:58 GMT

@Anonymous wrote:

@smallfry wrote:
At this rate it looks like it will take 7 years to get clean. I would see about a couple of free consultations with a BK lawyer or 2. Good luck.
No can do on a BK for the reasons in the original post.

I would still talk to a good lawyer, there might be options you have not considered.

ALSO, are you active members of any faith community or religious organization? If so, then you should talk with your priest/minister/rabbi/guru/shaman/whatever as well. He or she may not be able to offer much practical advice, but in the current economy has very likely spent a lot of time counseling others in situations like yours so may be able to offer spiritual and moral support that could be enormously helpful (the best of them will also have genuine wisdom to impart). I've known many outstanding folks in my own and other traditions, and some of them have been truly a blessing to my wife and myself at difficult times -- several ministers were a huge source of support after my sister died in a 2007 auto accident.

Re: I think I'm heading for the underground.

fishbjc — Thu, 17 Jul 2008 14:19:04 GMT

Tex, I've sent you a PM. My BofA card is at four percent!

The CCCS I use has a *relationship* with BofA. I've referred two other people who are also very happy with their BofA rates.....well UNDER 10%!!!!!

I've sent you a PM with the organization, but would be happy to provide you with a contact name.

There was also a little issue about my CCCS mis-paying $2 per month, causing 30 day lates. I emailed the owner & he forwarded it to his assistant. Through her, she was able to get BofA to gw it.

They also went ahead and deleted two other lates for me. Happy Camper Here!

I CONGRATULATE YOU FOR HAVING THE GUTS TO KEEP THIS GOING AND GET YOURSELVES OUT OF DEBT. IT WILL WORK OUT!!!!!!!! WE HAVE CYBER-SHOULDERS TO CRY ON!

Re: I think I'm heading for the underground.

Anonymous — Thu, 17 Jul 2008 17:30:31 GMT

Update:

The IRS wanted to notify me that I do not owe a penalty on tax year 2002, the last year my ex and I filed jointly.

Um, ok.

Re: I think I'm heading for the underground.

demi — Thu, 17 Jul 2008 21:37:51 GMT

It may seem like forever, but eventually things will start happening. I have been in a debt management plan for 3 1/2 years, owed about 45,000....I have 2 months left, and am closing on my first house. For the first year or two, it seemed like nothing happenend, a couple of very small accounts were paid off. Then boom, regularly every motnh or two at least one credit card paid off...I am down to one, owe about 2,200...it was 15,000. It takes time. I would not pay anything extra without talking to the CCCS...some creditors will bump you. I am only guessing at this, but I think they usually have some type of agreements with the creditors on what gets paid first and where extra money goes. Your score will start to go up, probably already has. Do not listen to those who tell you it will ruin your credit (assuming it is a dmp), it won't. I would find out what is going on with the late payments...never had any problem.

You have done the most important steps...it just takes time and preservernce. If you do need a new car, check with the CCCS....they will probably allow a loan, and may be able to help.

Good luck, just keep plugging away.

Message Edited by demi on 07-17-2008 02:37 PM

Re: I think I'm heading for the underground.

marty56 — Thu, 17 Jul 2008 21:41:59 GMT

demi wrote:
I would not pay anything extra without talking to the CCCS...some creditors will bump you. I am only guessing at this, but I think they usually have some type of agreements with the creditors on what gets paid first and where extra money goes.

I had to pay Discover twice while I was in DMP since their payment wasn't processed in time. I also sent extra money to BofA. I didnt have any problem with doing that.

Re: I think I'm heading for the underground.

smallfry — Thu, 17 Jul 2008 22:28:27 GMT

@Anonymous wrote:
Update:
The IRS wanted to notify me that I do not owe a penalty on tax year 2002, the last year my ex and I filed jointly.
Um, ok.

Well that's good news.

Re: I think I'm heading for the underground.

demi — Thu, 17 Jul 2008 22:36:51 GMT

Marty-

The only problem I ever had was that Chase had an early in the month due date, would vary from the 5th to the 10th, so one month they payment was late. I called the DMP and they asked me not to pay directly, they pulled extra out of my account. The told me not to pay anything directly, that some might bump. Don't know if it was them or certain cards. Also changed the due date to later in the month so it wouldn't be a problem again.

Message Edited by demi on 07-17-2008 03:36 PM

Message Edited by demi on 07-17-2008 03:36 PM

Re: I think I'm heading for the underground.

marty56 — Fri, 18 Jul 2008 00:56:57 GMT

I didnt have a Chase product in DMP but I remember that I did call Discover and ask them what I should do about the payment since I didnt want it to be late. The BofA payment was at the end of my DMP since I didnt want them to make and more money off me that I had to.

IMHO I would ask the CCC not the DMP about they payment. My DMP company didnt even know what the actual balances were on the cards.

Re: I think I'm heading for the underground.

fishbjc — Fri, 18 Jul 2008 15:55:14 GMT

The CCCS I use asks me to update balances quarterly. I do it, gladly, because I make additional payments each month.

I'm more than 50% there! Paying as little as $10-$20 monthly will make a difference. I usually pay the interest as an additional payment, then add another $10 on each one. I'm knocking about six months off.

My BofA signature loan will be paid by the end of the year, they will take that $45 and add it to the BofA Visa, so I'll have $210 going on the Visa, plus the additional $20 + interest.

I wonder if BofA will reopen the card at the end?????? Any thoughts on this?

Re: I think I'm heading for the underground.

Anonymous — Fri, 18 Jul 2008 16:17:50 GMT

fishbjc wrote:
The CCCS I use asks me to update balances quarterly. I do it, gladly, because I make additional payments each month.

I'm more than 50% there! Paying as little as $10-$20 monthly will make a difference. I usually pay the interest as an additional payment, then add another $10 on each one. I'm knocking about six months off.

My BofA signature loan will be paid by the end of the year, they will take that $45 and add it to the BofA Visa, so I'll have $210 going on the Visa, plus the additional $20 + interest.

I wonder if BofA will reopen the card at the end?????? Any thoughts on this?

I talked to BofA yesterday...they will not lower the interest rates...even though we have made on-time payments fot 9 months. Our new CCCS counselor did ask me to provide statements for all our accounts at the end of this month. I am going to follow your lead on paying any extra I can possibly come up with. BofA said they have no problem with us making any extra payments on our own, directly to them. They also said that if we get all the way through the DMP, they would reinstste our accounts. They actually show our accounts as open with available credit.