Thank you so much for the quick response!

Thank you so much for the quick response! To answer:

I am worried about being late because of compounding the interest. I mean, one of the cards is charging me over 300 amonth due to the rate! I am so blown away by that amount! However, yes, I will skip the payment if I have to.

As for the 0% interest rate, I explored that already. No go, due to this debt to income thing. I can get it, but for way too low an amount. I even tried through my bank, who I have a relationship with, as I have banked with them for 15 years. Nope.

Definitely on the mortgage. I will NOT let my mortgage get behind under any circumstances. I have a 6 year old son. His father lives here too. That is also why I can’t move out of state with him. Unfortunately, his father is in school and therefore does not make any money. this = no child support. And the way our shared parenting is written, I can’t take him to court, as he is not obligated in his current situation. I wouldn’t anyway, we are friendly. He is a law student and will take over the finances for our son as soon as he is graduated and making “lawyer bucks”. This does not help me now.

I have considered just trying to focus on one CC at a time, paying the smallest one first and then moving on to the next one.. I could get several of them paid off that way, but it would ignore the biggies for several months and I am afraid of what I would be looking at by the time I got to those!

Yeah, Ohio passed this issue one several years ago and really messed things up for all people who are not married, not just Gay/Lesbian couples.

I don’t know how they get away with the arbitrary interest rates. Or why they won’t budge.

I have already sold a lot. My next step is to see about OT at work, but this is difficult due to child care. Still, you gotta do what you gotta do, so I will see what I can get, and then see who can watch my son. Thank you so much for the input!!!

I have worked with CCCS in the past

I have worked with CCCS in the past, and their program seemed too expensive for us too, however that was because we already had too much debt. I ended up having to get a part-time job to supplement our income for a little while.

You might want to try something like I read about it in the November issue of Reader’s Digest. Don’t give up hope! I’ve been in touch with people who have had debt above $100,000.00 and with a well designed commitment to reducing their debt, have moved forward. Bankruptcy would be a very last option and debt consolidation is right above that. Check out Dave Ramsey on the web. His teachings really helped me get my finances under control.

Thank you for all of the replys. I am searching the archives, it almost seems the more I read and research the more confused I get! LOL A couple of weeks ago I thought our only options were bk or cccs and now I see there are many more. I do believe I have decided not to use a debt settlement plan or CCCS though.

It is a long and I am sure boring story to how we got here but we have nothing to sell. We already sold our house a couple of years ago (at a loss) and have no assets at this time. I would rather not file bk if we can at all avoid it but I may consult with an attorney anyway. This is not new debt its the same balances we have been carrying around for several years makng minimum payments and not getting anywhere. I decided to try CCCS a couple of months ago and stopped making payments on my credit cards then. Now I have decided not to use CCCS and am 2-3 months behind on all of them and am sorry I quit making the payments.

I am working a full time and a part time job. My husband is supposed to be getting transferred to a different dept in the next couple of weeks which SHOULD give him a decent raise.

I guess my original problem was that I was never able to pay enough to get the principals down and now I am behind. So I am trying to figure out if I should call them now and try to make an agreement to get back on track or wait a few months and save all of my money to try to make a settlement. I can just barely afford to make the minimum payments there is no way to pay extra. Ideally I would love to settle half (to make it more managable) and then pay the rest off but not sure if that would work. The cards I have are MBNA, Chase, Capital One, Household and Providian (now washington mutual). Thanks!

If credit card debtor makes minimum payments

If credit card debtor makes minimum payments of $250 on a $10,000 balance with 24.9% interest rates, it will take seven years to get it out of debt. With CCCS, if one can afford payments, it takes about 5 years to get out of debt and the consumer pays 100% of your balance and sometimes a small amount of interest. Short of winning the lottery or inheriting money, and no desire to declare bankruptcy, I’m not sure how one would get out of debt without settlement. Typically with a reputable settlement attorney a debtor can get out of debt paying 50-60% of the total debt (which includes all fees) over three years. Sometimes it is less, but that is a conservative number. One recent settlement that I saw was a 35 cents on the dollar settlement on a $25,000 debt payable over three years in monthly installments.

The downside of these types of programs is that your credit gets worse (but ultimately improves as debts are settled and your recent payment history becomes consistent again). If you are barely making minimums it is unlikely that you would be granted additional credit. If you were granted additional credit it would be at a very high interest rate and if you were unable to repay it (as it is already difficult) your credit score would suffer.

If you go the debt settlement route, I would strongly suggest NOT to use any firm besides a law firm or an attorney that represents YOU with regard to your debt issues. A non-licensed debt settlement firm will tell you that they have an attorney on staff (which represents their interests not yours) or that they have IADPA Certified Arbitrators. These ‘certified’ arbitrators were certified by an industry group that these debt settlement companies own and control.

What state are you located in?

Re: Hoping maybe someone can give me some advice

Okay, I read the whole story.

1st – don’t worry about the credit card bills for the time being. If they are late, it is not the end of the world. After all, they are not as important as the roof over your head and they are already screwing you on the rate. It is because of some arbitrary ratio on your credit report.

2nd – you can try to get a new credit card before the next month – one that lets you transfer to a low “teaser rate”, even 0% is possible, since you have never been late. I am no fan of credit cards, but you need to find a way out. If you can move the debt to the new account with the low rate, do it. It will be in your name alone, but don’t worry about that right now.

3rd – pay your mortgage. The company will come after you for foreclosure if you don’t pay. Ohio is known for that.

4th – Is it possible for you to move to where your partner is living?

5th – I agree – don’t spend a settlement that is not yours yet. Bad move. If you can manage to tread water until the suit is settled, great. If not, prioritize your debts and pay what you can, cut back where you can. Credit cards, pain in the ass that they can be, sending you to collections, reporting you late on your credit report (and they definitely will), can wait. Don’t let them scare you. You need to keep your home, keep up with the student loans (federal debts) and eat first. Also, pay for any medications you need.

You are living in the wrong state. In California, unmarried people buying property together is not an issue if you otherwise qualify. Credit card companies are the worst. How they get away with those interest rates is unbelievable. These kind of rates ought to be illegal. There’s a good political issue to write your congressperson about. You need more income. Is there anything you could sell? What about a temporary part-time job until you pay down some bills?  What about taking on a roommate since your partner is gone 5 days anyway? Maybe someone else will have another idea.

Hoping maybe someone can give me some advice

Hi I am new, and am hoping maybe someone can give me some advice. This is confusing! I will try to make it as easy to follow as I can!

Ok, first of all, I am a lesbian in a committed relationship living in Ohio. This means we have a double income that is not recognized by many banks or by the government (ie on tax forms). It also means that when we bought our house, we were NOT allowed to buy it together, as Ohio does not let unmarried couples own property together. We could have gotten the loan together but A) her credit was poor due to delinquent medical bills and B) why put your name on a note for property that you cannot own? Bad idea.

Ok, when we were starting out, due to the aformentioned medical problems, she was in and out of work and we did a lot of living on credit cards. Long story short, we are paying for that now. Currently, We both have very good, secure jobs, but her’s has placed her 2 and a half hours in another STATE, meaning she has to maintain a seperate household during the week. We were involved in a serious car accident in September of 06 which required her to have surgery in September, puting her out of work for another 2 months. She has been back full force though since then.

Ok, are you still with me? On to the debt part: We have a house, a home equity loan, a student loan, a car payment, and credit cards, over 40k. Becasue of the nature of the relationship and the way we have to do things financially, everything except the car is in my name. The checking and savings accounts are in my name also and her pay check is direct deposited into my account. I pay all the bills.

When she was transfered to her new job, they gave her 5,000. We paid all of her rent etc from that. As of last month, it’s gone. So, today, here is the situation. Everything is current. But when I went to get a new car loan, after our accident, for the first time in my life, I was not approved. They said my score was fine, but my debt to income was too high because her income didn’t count, even when I listed her as a “renter”. Also, my CC interest rates have leaped to 30% even though I have never missed a payment or been late. I called and they refuse to lower them. Why? They pulled my credit report. Score fine. Debt to income too high! This jump in interest has put the minimum up past what we can pay on them.

I don’t know what to do. We are facing the real possiblity of not being able to pay these bills. I don’t understand why these CC compaines will not work with me when I have never been late or missed a payment. I can’t ask my partner to quit her job and come home. Then we are REALLY screwed. The amount we would save in her rent would not compensate for her loss of income.

Should I consider bankrupcy? I don’t know if I can, becasue my income is slightly higher than what I have read is the allowed income. On the other hand, I feel like for once, the fact that this state won’t cut my relationship a break would work for us, as my partners income can’t be touched. Can it? She has no legal tie to me. We have no savings to speak of. My other option is the credit counseling, I suppose, but unless they use my partners income, there is no way to manage any of the debt on my income alone.

The final kicker to all of this is that there is a lawyer involved on our behalf as a result of the car accident we were involved in and there is a real possiblity that we may get a significant settlement. However, I am not the type to count on $$ that does not exist. BUt part of me feels like I should just try to hang on until that case is settled once and for all, because if we do get a settlement, we can pay all this off and be done with it. I just don’t know if it is possible. I am already no knowing how I am going to pay the minimum on my cards this month. I’ve never missed a payment.

I am sorry this is so long. I hope it wan’t too confusing. I just feel so stuck and trapped. I don’t want to ruin my credit completely, but I feel like it already is ruined anyway. I want to be responsible, but I don’t feel I deserve a 30% interest rate and I can’t manage the payments with that rate. I really don’t know what to do. By this time next month, I will be behind on the cards. So I need to make a decision. I will NOT let my house, home equity, student loan or car get behind.

Thank for listening and in advance for any advice!

P. S. Oh, and one more thing (as if all that wasn’t enough!) IF and it’s a big IF, this settlement comes through, it is my partners, not mine. So it is my assumption that it would be therefore protected from the bankrupcy if I were to go that route.

Bankruptcy terms help please

I received a letter from my attorney stating that: It is ordered that the abandonment of property and report of no distribution are approved, the trustee is discharged from and relieved of his/her trust, the sureties on the trustees bond are released from further liability in the case, and the case is closed. Anyways, I was wondering what this meant?

Can you tell me if you filed for 13 or 7? Discharged as a bankrupt – in Canada it means the ordeal of bankruptcy proceedings are at an official end. It sounds like you filed a Chapter 7. The term abandonment of property and report of no distribution is approved means that you have no assets to have distributed to your creditors. The trustee is requesting the he/she be released from your case and it be closed. Have you already received your discharge notice? Your case isn’t discharged until you receive that.

YAY… Have the payoff letter!

I hold the letter from the collector acknowledging the debt being paid off entirely. Now to go report this to the credit bureaus. Very happy to see this in writing and holding it here. I guess I’ll go to the Equifax, Experian and other credit boards to tell them, as the debt collector is not a ‘reporting agency.

This may seem like an asinine question, but…If they are not a reporting agency, then why is it in your credit report. They must have reported it before. Unless, they just don’t report the pay off terms. Just curious.

The original debt reported it. The collector doesn’t report payoffs. Somehow, U think they would have if I’d not paid them.