Getting out of debt - Settlement

maxedout2 — Tue, 21 Dec 2021 18:41:05 GMT

This past summer I was in a state of panic and nervous breakdown. I owed over 125,000 in credit card debt not including secured dept because I was robbing Peter to pay Paul. At the age of 51 years old, I added up all my monthly expenses and it hit me like a ton of bricks. I was trying to keep up with the Jones' and realized living like this wasn't worth it any more. We had a nice place at the river, harley, 2018 F250, 2019 Toyota Highlander, 2009 Mustang, and a 2020 Kubota tractor. My monthly payments alone were close to $8,000 a month. I'm self-employeed and wasn't paying my estimated taxes to cover these payments. I was out of control with the help of my husband and in financial ruin.

Starting looking into BK 13 since I made too much and wanted to keep my house. After figuring up the numbers and equity in all assets - I wouldn't be able to make the BK 13 payments in order to keep ANYTHING. It would have been just like filing BK7. So BK wasn't an option for me since COVID had caused increases in equity of everything and debt settlement was my best option. I'm in NC btw if that matters. After laying in the fetal position for 2 months, I finally got up and started tackling this step by step. I had to take back control of my life and convince my husband our marriage wasn't go to make it with all this financial stress. We had to get back to basics and to hell with everyone else and what they thought.

Step 1 - I started selling everything.... Harley, F250, Mustang, Toyota, Tractor - now we have 2 used vehicles that will be paid off in 4 years. Payments slashed from 2800/month to 796 (1 truck and 1 car). The equity in the F250 helped tremendously.

***** - Sell place at the river. Extra 30K in hand. Plus not having to pay those additional expenses.

***** - Sell everything we don't need - Extra 10K in hand.

Step 2 - I stopped making credit card payments to save those monthly payments in my settlement offers. I tell you that not making those payments on time caused me great heartache and relief at the same time. Note: I was never late on any of my payments.

Step 3 - Start the process of where each card settles at: BOA settled at 35% - 30 days late but not yet 60 days. Chase settled at 45% - 30 days late but not yet 60 days late. I know I could have gotten Chase to 35% if I would have waited closer to 150 days but wanted to get these out of the way. I still have Cap 1, Elan Fin, and Greensky to tackle - Right now I'm only 60 days late on Elan and they are offering 75% so I'll wait close to 150 to see if they lower this. All of these cards were over 10K but less then 20K and maxed out.

Any card that was less then 2k, I paid them off because you won't get a good settlement for those. My Sychrony accounts allowed 0% apr for 60 months to pay the balance in full but cards were closed. At this point in my life, I could care less if I never see another credit card. I have a house and vehicle to drive and I'm fine with that. However, to help reduce the damage to my credit score - paying off small cards helps and settleing before it charges off. I hope my score will bounce back after 2 years if not sooner.

I still have a ways to go but hopefully by the end of 2022 I'll be better off then I am today. I've cut my expenses in half as of today.

If you find yourself in a similiar situation - cry, have a pity party and get it out of your system, then put on your big girl/boy britches and get to work. Emotionally I'm in a better place and I hope this helps someone else out there that may be in a similiar situation. I read the blog consumer recovery network (debt settlement race) and this community helped me during my research to see what my options were.

Re: Getting out of debt - Settlement

FireMedic1 — Tue, 21 Dec 2021 19:04:29 GMT

Congrats. Isnt easy to say goodbye to nice things. But thats what it is. Material things. Your health from stress will be much better. Less worries and the list goes on and on. You can be back where you were before like many of us who had to endure a rebuild. But it can be done. Great job!

Re: Getting out of debt - Settlement

Anonymous — Tue, 21 Dec 2021 21:00:20 GMT

Great work, you can do it. I settled with Elan @ 30% after 6 months late and CO. Good to see you go to bare essentials and honestly, if you can get rid of the payments on car and truck and buy used, that would make it go much quicker. Good luck to you into the new year.

Re: Getting out of debt - Settlement

Superhero — Fri, 14 Nov 2025 02:31:49 GMT

Hello! I know it has been a long time since your post but what happened to all your debits and score after 4 years? What happened to Elan Card? Thanks

Re: Getting out of debt - Settlement

Superhero — Fri, 14 Nov 2025 02:32:59 GMT

Was that after interests?

Re: Getting out of debt - Settlement

coldfusion — Fri, 14 Nov 2025 12:48:40 GMT

OP has not logged in on the site in over 3 years so I wouldn't hold my breath waiting for a reponse.

Re: Getting out of debt - Settlement

MrBee25 — Fri, 14 Nov 2025 14:12:27 GMT

Due to the age of this thread, it will be locked in order to keep discussions current. If you have the same or a similar question/issue, please feel free to start a new thread on the topic.
Thank you!

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Getting out of debt - Settlement

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