When you’re broke you can’t afford the luxuries in life. Especially those that aren’t necessities. I remember those days. Get rid of the cell, get rid of the cable. You can’t afford these things until you get back on your feet. Its amazing how we live in a society that makes us think certain items are necessities when they’re not.
You NEED my cell only because you have no home phone. its your only way to be reached. you only have cable for the internet (modem) so you can look for jobs. maybe you’re right about the cable though because you also have internet at work and you usually look for jobs while you’re at work anyway.
If you received basic phone service (no frills) with the Universal Life Line plan (discounted for those under a certain income), you would be able to log onto netzero (10hrs free per month). That would defeat the cell phone bill and the cable bill. As a last resort you may get a loan online here and pay all your urgent bills and other expenses.
Can your phone still dial out. I know that in CA it is illegal for a person unable to dial 911 from their home, even though they have no direct telephone service. I know from this you can usually access toll free numbers. Have you ever plugged in your phone to see.
I just received a fax letter from BoA for $.20 on the dollar. To be paid over 6 months. They are demanding a check over the phone for the first payment. Should I pay this? Is this settlement a binding agreement? I dont want them to come back and say I owe the full amount.
well .20 cents on the dollar isn’t bad and paid over six months that is good too most people want it paid in 30 days. I think i would do it. tell them to send the agreement in writing.
NEVER, NEVER, NEVER, NEVER, NEVER (get the point?), give a creditor on a cc, mortgage, etc. a check over the telephone. Then you have given them all you checking info and they can and sometimes will tap into your account for more money, whether there is money there or not.
Here is the catch, they take another payment, what do/can you do? Take them to court? You owe them anyway.
Send money order, cashier’s check or regular, but do not give someone that kind of access. It is paramount to danger.
Just my advice.
I agree about your bank account; but also consider this … if you can find a local bank that offers free checking, open an account there and use it for times like this. It works well, that way you only have to put the exact amount needed in at the time it is needed. They can’t get money via wire if the money isn’t in the account; so don’t keep extra there (just enough to keep it open)
They can’t get money via wire if the money isn’t in the account; so don’t keep extra there (just enough to keep it open)
Actually they can. Certain banks offer “courtesy” overdraft on your account. The “courtesy” overdraft amount varies from bank to bank and does not necessarily have to be applied for.
Your account can be overdrafted even if you don’t have the money. Similar to making a purchase at a merchant, some banks will allow you to overdraw your account.
Anytime you give out your checking account info you put yourself at risk. I have done check by phone but before but as Deb suggested, I keep a very minimum amount in there. If a creditor tries to access my account it’s very easy to close that and open a new one. I use one account just for my pro rata plan and all other funds have been moved to an account that is not affiliated with any of my creditors.
Anyway, I never thought of the “free” checking account idea but I really don’t think it’s a necessity. There aren’t any “deals” that are honestly only good for “today”. They will always accept a money order unless their intent WAS to clean out your account electronically and the good deal was just a ruse.
Be wise and remember that all they want is their money…anyway they can get it.
I am about 5-6 months behind and was recently offered .15 on the dollar to settle with BoA and that account exceeded $25,000.00. Does anyone know the settlement percentages of other cards. Their balances are less than $10,000.00, but greater than $5,000.00
Bank of America
Also, BoA tracked me down for a resolution and one of their options was the settlement offer, will these other cards do the same? Is it before or after charge off that they make a settlement offer? Should I send a settlement offer to them in writing to get the ball rolling?
My total debt is overwhelming and I am in a relentless pursuit to extinguish it the cheapest way possible. Thanks for any input, this forum has been a great help!
WOW! .15 cents on the dollar! I’m impressed! I too have an account with BoA that is like $20,000…and would love to settle!
I heard BoA is hard to deal with…but some of the posts on here give me encouragement.
I too am way in over my head, with business debt, that I’m personally liable for, and personal debt, that I think the only way out is to file bankruptcy. I’d love to settle, if I didn’t have the biz debt, I think I could do it.
I’m seriously contemplating bankruptcy, ch. 13. Our service van got repo’d tonight. My husband was recently diagnosed with ADD, and he can’t handle the business anymore…he is like a non-functional person right now. He needs a job where he is expected to be there…not to get the self-motivation to get out the door. STRESS!
I have recently gone thru a bankruptcy, and now about to get a foreclosure on my house it was a new house i tried to rent it or sell it but did not have any luck. i was wondering what happens with the taxes?? They usually send me a bill to the house and then i send it off to the bank to get paid, but what happens now with a foreclosure, the same thing, or am i going to get stuck with a 3,000 tax bill that i cannot pay that the bank says that i owe, the house is in the state of Texas and i lived there over a yr. so it was a homestead too.
I don’t remember what month the tax bills came in, and what office would you contact to get it early,to send in to the bank?? I would call the bank but i would expect that some bozo would just lie to me what are the laws?? i have never had a house before this one, and never a foreclosure either. they should start around the end of this month or two weeks after that i just got a letter from them registered mail. Help??
You should call the Appraisal District for the county you lived in. They can fax you a copy of the bill, then you can fax it to the bank. I worked for an appraisal district years ago and if I remember correctly property taxes are the same as federal taxes, they don’t go away even with a bankruptcy. But the laws may have changed. They should be able to tell you at the tax office.
When a foreclosure occurs; the one foreclosing (the bank in your case) will be responsible for any back taxes and current taxes on the property if they want clear title as back taxes can affect title of the property.
Your monthly payments below almost equal your net income; you have to make some drastic decisions on your expenses and increase your income if you don’t want to file bankruptcy. No choice there. $500 a month just isn’t enough money to cover groceries, gas, repairs, clothes and other unexpected expenses especially if you have a family.
I am not saying you can’t do it, you can; but it will take time and hard work, being dedicated to trimming excess, willing to work another job, etc.
Now, as far as bankruptcy is concerned, Chapter 7 is liquidation and there is no Chapter 14. Chapter 13 is reorganization. You don’t make the “choice” of filing which Chapter anymore; that was changed last fall and the median income of your State is in large part the determiner for which chapter you can file. If your income is below the median income for your state, you can choose to file 7 or 13; however, if it is above, then you will likely be forced into 13. Also, you have to take a finance/credit counseling class within 6 months prior to filing. Keep in mind, student loans are not dischargeable in bankruptcy, no matter which chapter you file.
You can learn more about median income for your state here:
Expense standards for 48 contiguous states:
The first thing you have to deal with, believe it or not, is the depression … depression can make you physically ill and prevent you from working so this is the big thing for you right now. The most important thing in your life is your health and your family … are you married, can you discuss this with a spouse or significant other?
Being honest and upfront with your spouse, and they with you, is extremely important to resolving these issues and supporting each other will go a long way in resolving the depression.
Also this is what dave Ramsey says:
Remember, they (Creditors) can’t hurt you … they cannot physically hurt you … only you can do that to yourself if you let it happen … absolutely refuse to be depressed … there are solutions, from tightening your belt … ok breathing may be a tad hard for a while 😉 but you will breathe … to filing bankruptcy … to just not paying anything but the necessities (meaning no cc’s, no unsecured loans … just keeping a house over your head and related expenses).
Hope this helps some and do post back if you need more questions answered.
I’ve pretty much come to the conclusion that there is NO way I’m ever going to get myself out of this hole that I’ve dug for myself. Well, some of it is just a matter of a bad choice to move to a state where the housing appreciation has gone down the toilet – but I guess it doesn’t matter HOW we got here. PLEASE, I am looking for some advice here. I am growing increasingly more and more depressed over this situation.
I try to make this simple but just laying out the numbers:
- TOTAL DEBT: $258,000
- MONTHLY NET INCOME: (after taxes): $3700
- TOTAL MONTLY PAYMENTS: $3268
- $46,000 in student loans that have been in deferrment for 6 years and keep building interest.
- $196,000 on my home that is now only worth about $175,000 (Mortgage 1 = 185,000 and Mortgage 2 = 11,000)
- $10,000 unsecured loan
- $3,000 overdraft loan
- $1,200 credit card
- $300 credit card
- 1,400 medical bills
- 1450 – Mortgage 1
- 75 – Mortgage 2
- 199 – HOA
- 28 – Water
- 96 – Electric
- 92 – Cable
- 93 – Car Ins
- 60 – Cell
- 305 – Unsecured Loan
- 800 – Daycare
- 25 – overdraft loan (high interest)
- 25 – credit card (high interest)
- 10 – credit card (high interest)
- 10 – medical bills
- 0 – Student Loans that continue to accrue interest
Can someone give me advice – I guess state the obvious here? And I don’t want the file Chapter 7 – I want to get rid of it so I can start SAVING money – I want to file Chapter 14. If I don’t get RID of the debt and start saving money, what happens when my car starts breaking down? Or I need a root canal? Or my son is in an accident that requires hospitalization?
Side note: I’m a single mom and I adopted my son – therefore, I don’t get child support.
I was 50,00 in debt in credit card debt, and just got in under the wire for a chapter 7 bankruptcy. with having a debt thet large on credit cards it accumulates alot of interest so that you never get it paid off. my husband got laid off a good job and then did not find a permanent one for a long time did contract stuff etc. no benefits and when the jobs were done he got laid off again, also we bought a new house when he got a permenant job and then he got sick form the house fiberglass leaking out of the ducts made us all very sick substandard stuff very small, and also the chemicals at his job were toxic, tanning solution with no ventilation, and they would not leave the doors open, so he had to quit, we have moved to another state and are doing much better.
My suggestion is not write all your debt out on paper or on the computer call and find out the current interest rate that they are charging you. quit charging anything, lock them in a drawer, Then if you have any relatives willing to lend you any money call and talk to all them, you would be surprised who will help you sometimes, see if you can borrow some money with a no interest loan,and pay off the smaller cards first, and so on with your pay and his, until you only have a few cards left that could knock out about 20,000 quickly, and remember if you have medical bills lets say that you dont pay them they go on your credit but to go against you when trying to buy a house etc.
at least that is the law in texas, you might what to check the laws in your state. also i am a firm believer in using coupons, and quit going out to eat, it is cheaper to cook at home. If you have any teenagers at home you might encourage them to get a part time job to help and buy them selves things that they want. Also if you get credit card offers if you get good deal for a balance transfer at a lower interest rate you can transfer off a higher rate card to pay it off quicker, just dont use the card tho.
I’m new here, and would like to discuss my story…any advice is well appreciated! Sorry, kinda long.
Our debt story began when my husband got laid off from a good paying Union job in 2003. He never got called back for a FT job. We were in the process of starting our own Heating & A/C business at the time he got laid off…and we started things up and he went FT with our business. I work PT as a nurse, but make FT pay.
Of course, we accumulated a lot of debt to buy stuff for the business, and to provide our living expenses when he didn’t get paychecks…Owners are last to get paid. That landed us to where we are today….
- around $50,000 in credit card debt for our personal finances.
- around $45,000 in business debt, of which we are personally liable for…mostly $ due to our suppliers.
To compound the situation, my husband was diagnosed with Adult ADD (Attention Deficit Disorder)last year. He is a super smart, mechanically inclined man…but lacks motivation to get started and to finish jobs, is disorganized, irresponsible with money and spending habits. Unfortunately, this affects our business. We are trying to find the right medication for him, it’s been rough!
I feel we can negotiate our way our of credit card debt, IF he gets another job making descent money…and avoid bankruptcy.
The business CAN be profitable if managed correctly. I feel I have the skills to be able to take it places, but was held back b/c of my husband who wanted control. I know it can be profitable.
BUT, we are personally liable for the business debt, even though it’s a corporation. SO, we can’t simply fold the business, and file bankruptcy with the business, b/c they will come after us…and the only way to avoid that is to file bankruptcy ourself, after closing the corporation, and include the business debt in with our personal debt in the bankruptcy.
I would like to avoid bankruptcy. It is a possibility to keep the business open on a part-time basis, but nearly all the profit will have to go to debt, and maybe later after my husband is settled, he can start it up FT again…the right way. Or, keep it as a part-time thing, and once all is paid off, it will be all extra money after paying for parts and supplies.
That’s my dilemma! Big one, huh? Any advice, or stories, encouragement is welcomed!
Thanks for ‘listening’