Desperately need some advice

[sweetpea1027]

In December I lost a great paying job, and became a single parent in one month. I have recently become employed again but spent my entire savings to keep myself and my children afloat.

I have a lot of credit card debt. About 30K. I was told today that I will be receiving a rather unexpected inheritance of about 40K sometime in February or March.

I've not been able to make any card payments and have missed December, January, and will miss February payments. I know this is usually when card issuers start to charge things off. I already know my credit has taken a huge beating from these non payments, even though I've never missed payments in 5 years (even though I have very high utilization).

What should I do? Should I call up the credit card companies and explain that I can pay in full in a few months? Or should I wait to try and settle for lower amounts since my credit has already taken a huge beating? I'm honestly clueless and never been in this position. I just want to pay off everything and never get in this spot again.

[RobertEG]

The creditor can report increased monthly delinquencies in addition to a charge-off.

They can additionally refer or sell the debt to a debt collector, which will likely result in the addition of a collection.

Yes, give them a call, explain the situation, and ask for a deferred payment, or at least deferral of reporting of increased delinquency, or any charge-off.

They may provide a few months......

[sweetpea1027]

I reached out to the credit card companys (all synchrony with 2 comenity). They were not very helpful. I explained the situation and they all wanted me to set up a payment right then and there. I explained I couldn't be cause I didn't know when exactly I would have the funds but that I want to pay them.

They explained that they have already reported 2 months of non payment, and that my 3rd month is coming up here in February and that is when they will start closing off accounts.

What should I do? Should I just wait for them to close everything and then try to negotiate since they will still be the original creditor? I checked my score and it's already fallen from 550's to the low 400's.

I want to pay them, and I would like to pay them in full if possible. i don't even mind them closing them. I want to make good on my obligations because i know I have 40K coming my way, I just don't know when for sure I will have access to the funds. I know sometime in February or March.

It is even possible to recover from a low 400 score?

[Anonymous]

unexpected inheritance of about 40K sometime in February or March.

* Ummm, has the exact process of this passing to you been explained in depth? Is it a simple or complex process?

a single parent, I have recently become employed again

* so if everything happened today, and all of your credit cards were paid in full, what is your financial situation going forward?

With this new job, will it cover all of your expenses on a monthly basis?

Basically, once this is resolved in positive manner, will your credit life be better?

Best Wishes!!!!

[sweetpea1027]

Yes. I signed and completed everything with the attorney this past week. It should be a very simple process. He will receive the funds, and then issue me a check from his IOLTA account t. I will deposit the check I get, but as it will be a large check I have no doubt that my financial institution will place a hold on them.

My financial situation going forward will cover all of my expenses and still give me room for savings. That's if all of this is paid for and done with. I may not come across as very educated, and I'm not in matters of credit, but I do have a decent education under my belt and was able to get a job in my field. It was hard to find another position paying near what I was making before, but I finally did. I have passed the extensive background check and accepted the offer.

[rmduhon]

Could you get a short term loan from your bank to bring the accounts current then pay it back when you get the money?

[Anonymous]

Yes. I signed and completed everything with the attorney this past week. It should be a very simple process. He will receive the funds, and then issue me a check from his IOLTA account t. I will deposit the check I get, but as it will be a large check I have no doubt that my financial institution will place a hold on them.

* Do you happen to have a bank or credit union where you happen to have a long term relationship with?

I ask because if you can have your Attorney "wire" you the funds to your account, they will be available, and you can begin moving the money to your creditors. A fed wire would probably cost you, maybe $25, but it is moved within one day into your account. Similarly, you can consider moving it to your creditors via a wire or ACH as well. A logistical challenge, but one that can be a time saver.

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My financial situation going forward will cover all of my expenses and still give me room for savings. That's if all of this is paid for and done with. I may not come across as very educated, and I'm not in matters of credit, but I do have a decent education under my belt and was able to get a job in my field. It was hard to find another position paying near what I was making before, but I finally did. I have passed the extensive background check and accepted the offer.

* Congratz on being able to move forward after this challenge.

Unfortunately, it looks like you have to wait on receipt of the disbursed funds. However, after that, you will be able to address all of that. Once the creditor are paid, attempting some repair works will be possible.

Best Wishes!!!

[sweetpea1027]

I will ask my attorney if it will be possible to wire the funds.

I fully intend on paying each creditor back. I wish I could pay something towards each right now but until I start receiving pay, every little bit I have goes towards living expenses. I spoke at length with several and they didn't give me many options other than schedule a payment of the full past due (which I can't do because I don't want to schedule something and not have the funds, so then it will get returned and cause a bigger problem), or call after the account has been late for the 3rd month on a row to see what they can do. They wouldn't even agree to take $25, but the full past due, which I'd be able to afford to pay each creditor

I hate to loose all these accounts, especially after 5+ years of great payment history but I've not been able to make any payments at all on any of my credit accounts since the end of November. I'd much rather just have them paid, and gone and never have to worry about the temptation of them again. Most creditors did let me know that February is the 3 month mark where after no payment they will start closing the accounts and pursue other means of collecting.

If/once they're closed, I assume it will still be with the original creditor for a bit. Would I have a chance at settling some of these for lowers amounts? The 2 late payments on each account (about 10 in total) has already dropped my credit over a hundred points.

[Anonymous]

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sweetpea1027 wrote:
I will ask my attorney if it will be possible to wire the funds.

I fully intend on paying each creditor back. I wish I could pay something towards each right now but until I start receiving pay, every little bit I have goes towards living expenses. I spoke at length with several and they didn't give me many options other than schedule a payment of the full past due (which I can't do because I don't want to schedule something and not have the funds, so then it will get returned and cause a bigger problem), or call after the account has been late for the 3rd month on a row to see what they can do. They wouldn't even agree to take $25, but the full past due, which I'd be able to afford to pay each creditor

I hate to loose all these accounts, especially after 5+ years of great payment history but I've not been able to make any payments at all on any of my credit accounts since the end of November. I'd much rather just have them paid, and gone and never have to worry about the temptation of them again. Most creditors did let me know that February is the 3 month mark where after * (Not sure when they will start taking action, but as you keep up to date with the Attorney, you can keep the creditors informed also. At least they will know your positive intentions, and you are not just derelict, and intend to intentionally burn them. The uncertainty of the Feb - March disbursement of funds will impact when you can pay them)  no payment they will start closing the accounts and pursue other means of collecting.

If/once they're closed, I assume it will still be with the original creditor for a bit. Would I have a chance at settling some of these for lowers amounts? The 2 late payments on each account (about 10 in total) has already dropped my credit over a hundred points.

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Myself, I take what happens, and try to look at it a bit differently.

In our cases, I look at it as if it is a car accident. The first thing is to take inventory of yourself and those in the car with you. Are you okay? Are they okay? Wait, you are still alive, right? What about the other occupants?

What were the circumstances of the car accident? Was there any direct impact? Was another person hit? Are they hurt, are they alive?

What permanent injuries are there? What injuries can be rehabilitated? Any visible scars or handicaps? What about invisible injuries or non-visible handicaps? Is anyone left either with out a limb or limbs? Anyone paralyzed?

Consider looking at your situation, and while what has happened to you, and you are currently struggling with it, it does not define you and is not permanent. Similar to physical therapy for an injury, you can recover and rebuild.

Having had my own moments, I know it is not fun, and I only wanted it resolved immediately, and completely wiped away as if it was a bad dream. But it will pass, and you will be Whole again.

Hang in there!

[sweetpea1027]

Thank you so much for that. It really put it into perspective for me.

I'm okay, my kids are okay, I'm getting back on my feet, I have a home, a reliable vehicle, and I have a decent co parenting relationship with the soon to be ex.

It can all be fixed