CoachT

Kim, let me make sure I understand. You have $30K in credit card debt that you haven't paid on in nearly 2 years, and other debts that have been charged off? Why do you need to do anything (is the card company now coming after you)? You are just a little over 5 years from having that debt age off your credit report. If you send them $1 today, it starts the 7 year clock over. It also sounds like you are probably judgment proof (unless you live in a garnishment state). Give us a little more info and I will try to offer some advice.

First, this stress is going to kill you. I have been in your shoes (and am still unwinding from a failed business and twice the amount of credit card debt you have, plus a tax obligation). There are certain basics you need to live (shelter, transportation, food). Prioritize those things in any plan you make. Second, read my posts on the pinned topic of "hardships" (just above your post). I negotiated 0 percent deals with my card carriers directly. In my case, it is better on your credit than some of the tactics used by debt settlement companies that I have read about. In my opinion you do not need a company to settle those debts, but you do need a plan and a willingness to be persistent until you get a helpful ear on the phone. The first thing you should do (and it is brutal mentally), is figure out exactly what you owe every month (don't forget small things like your son's saxophone rental or whatever) and then figure up what you have left to live on. You will need that information for negotiations on your debts. For example, a mortgage with Chase in which the payments, property taxes, HOA dues and insurance exceed 40% of your gross income may be modified by Chase under their hardship program (or whatever they call it). Also, if you have less than about $1500 per month to live on, then every credit card company I worked with was willing to reduce my payments by giving me 0 percent for a fixed term to pay the card off (the account is closed, but who cares - I don't need more debt). Let us know how we can help, but you can work through this and start living a more normal life.

I would be very hesitant to pay anything on this. Any activity on the account will start the 7 year reporting process over at day 1, as I understand it. This should not be continued reported on you CR, and the statute of limitations has likely long since passed (in most states it is 4 years on a written contract - but you can probably call a state legal aid office and get that answered for you). Sounds like a credit trap to me.

Sorry, been a while since I signed on here. Chase marked my accounts as "closed at the request of the consumer" and I make the payments online every month on the same due date as previously.

I don't have all the answers by any stretch, but why don't you describe a little of what is going on and I bet people on here will try to help.

Update from my last post, this time dealing with Citi (on my AT&T Universal Card). So, after negotiating 60 mos at 0 percent with Chase, I waited for my Citi card to be past the due date to try to work with them. Due date was on a Sunday, and Saturday morning we get a call from Citi about the card because it was over the limit (from the interest when the statement cut). About 24,000 owed on a 23,800 credit line (read my above post on Chase if you want to hear about our failed small business to understand our debt). Told Citi we were having a hardship and the person on the phone said they couldn't do anything for us. I thanked her and hung up. I Immediately called the Citi hardship department at 866-444-4986. The guy who answered could not have been nicer and more understanding. Much less detail on finances than Chase, but wanted to hear about medical expenses and failed business as well as current income level as compared to prior income level (mine is about 60%). After all of that he said that he could not offer anything at this time because we weren't yet late. He sorta indicated I should try back every couple of weeks until "the system would allow them to offer something". He wished us well and said he would put everything in the permanent notes. Curiously, we did not receive another call about being late or over the limit for the next two weeks. I called back two weeks later, and again talked to a very friendly and helpful rep who took a little additional information, asked what I could afford (which I had already calculated a balance divided by 60 months at 0%, so I used that number as a range - $425-450). He then transferred me to another very helpful person who set us up on 55 months at $450 with 0 percent interest. The payments have to auto debit from our checking account and we had to make the first one then. Again, wish I had done this months ago.

Called Chase today at 1-877-890-2941. i will spare everyone the drama, but DROWNING in minimum payments from a failed business where we propped ourselves (and my partners) up on revolving debt in my name (bad idea by the way). Was recommended bankruptcy by a bankruptcy lawyer because so much of it was business debt, could probably qualify for CH7. Anyway, sucked it up and called Chase. Two cards - 28,000 on one, 10,000 on the other. Both maxed out. larger one was 5 days past due, the other current. had made minimum payments within 30 days of due date, but typically late over the past 12 months. Chase could not have been nicer, and ultimately gave me 0% for 5 years, accounts closed by consumer. Couple of things to note: First offer on the larger card was 6% and I said that didn't make much of a payment difference so it really didn't help, she immediately dropped to 0%. Took a lot of information about my finances, then approved me. I had to make up the late payment, and then the new payments start the following month (so, you basically are skipping a month if your late one is in the last billing cycle!). Wish I had done this months ago. The more interesting thing was the smaller card was current (although the last payment was late) so I was initially told I did not qualify, but that she would ask for an exception. Put me on hold, then came back and asked for REALLY detailed financial information, saying that they believed I had enough discretionary income to keep the account current without a BLP program. I had to describe in detail utility bills, home owner's dues, etc. My sense is they want to see you able to pay payments but not with a lot of money left over in order to approve you. I finally got approved on that card as well. So, if you are thinking of doing this with Chase, here is a little advice that I took away from today: 1. Call (the dread of calling weighed on me for days). 2. Be nice, humble, respectful. You are begging after all. If you have a problem talking to people in India explaining how you ended up where you are financially, put that aside and be polite. 3. Be prepared with your financial breakdown as follows: mortgage; all secured loans; irs payment plan (if you are so unforuntate as to have one like me); student loans; all revolving credit minimum payments; and all other payments you make monthly (insurance, home owner's dues, etc.), They are very thorough. Shoot for around $1000-1500 left after everything. 4. Be prepared to be on the phone for more than an hour without interruption. Be patient. Don't do this in the kitchen with the kids running around. It takes time and you will be put on hold several times. 5. Be prepared to explain what has changed to cause you financial difficulty. Failed business, difficulty finding new job, less income, and unforseen medical expenses seem to be well-received. Good luck - off to deal with Citi next, so I hope they are as helpful. Today feels like a step in the right direction for a change.