Category: Huge debt

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 http://www.prosper.com/ 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?