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ANNOUNCEMENT

 


cv91915 has set up a Go Fund Me page to take donations that will be used for flowers for breeze's memorial, and excess will be donated to a cancer charity in breeze's name.  If you'd like to participate, please go here:  https://www.gofundme.com/breeze-memorial .  If you have any questions about donating or the GFM, please reach out to cv91915.  
 
 
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Sunday, unexpectedly, we lost one of our own.  After a sudden diagnosis of liver cancer just two days before, our very own mama Breeze lost her battle with this disease and passed away on Sunday afternoon.   She passed peacefully surrounded by her family.
 
We know that many of you will be as devastated as we are to learn of this, and we know that you will share in our grief.  We will be in the Feedback forum with you, sharing our memories and our tears.  We encourage you to join us there.
 
We started on this journey fifteen years ago - breeze, Pam, LKH, and radi8.  Through everything that has transpired over the past fifteen years, we have always remained family - and Mama breeze was an integral part of that family.  We will be posting additional information here, as much as we can while still respecting her desire for privacy and anonymity.  For now, while we process our grief, we will close this notice with Godspeed, Mama.  We miss you so much already.

 

- Pam, LKH, radi8, Marv

- the mods and forum leads


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hopingfor700

Debt Settlement Program or Pay on my own?

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Hi all,

 

I'm hoping for some insight on the best way to proceed. I'll try to be brief, but if more details are needed I'll gladly provide.

 

Goal is to raise my credit score (in the mid 500s currently). Want to qualify for a home in the next 9-12 months if possible.

 

Currently have a lot of CC debt and a loan with Avant.

 

6 CCs:

First Premier (2) - $650, $750
Capital One - $3300

The Limited Store Card - $1350

Credit One - $600

Credit Union - $5100

 

Loan:

Avant - $6500

 

I enrolled in a debt settlement program about a month ago. A couple cards have gone past 30 days at this point, since the program says I shouldn't pay the companies directly so the program can negotiate on my behalf. They say it takes about 90 to 120 days of no payment for most companies to be willing to settle, and they settle for up to 50% less than what I owe (typically).

 

At the time I enrolled, I really needed it. The monthly minimum payments were getting me nowhere fast and I was surviving on ccs basically. I pay $265/month for the Avant loan (which has a terrible interest rate of course; I've barely made a dent in the principle and it's been a year). With the program, I pay them $290 a month until all debts are settled, which they say may take time (up to 38 months). They also said after 6 months (approx. Feb 2017) they will review my account for a total settlement loan, which means they will pay off all my debts and I'll just have a loan with them only.

 

During all of this, I got a huge promotion which will bring in about $500 extra a month.

 

My question is - is it smarter to throw the $500 extra a month on the cards in a "snowball" fashion, or dump it into the program to settle debts faster?

 

At this point all of the cards except the Credit Union are about to report 30 days late, so either way I'll have to try and clean that up on the back end. So I'm wondering since I'll have lates reporting soon anyway, if I should just proceed with the program and dump as much money into it as I can, or if I should try and pay off the small cards asap then tackle the bigger ones.

 

I won't receive my first paycheck from my new job until the end of September, so lates will definitely be reported by then.

 

Just trying to figure out what is the smartest move, which direction will be "easier" to clean up at the end, which direction will increase my credit score the most/fastest, etc.

 

Thanks so much. All (helpful) insight welcome.

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you are in debt settlement program? right? what is that proposed plan?

 

you have $500 extra coming, its also taxable? save $400 continously for 6 months and payoff credit cards in full only, no partial payments. save $100 foryour taxes?

 

i m writing this as of may 2017, post any updates

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You signed up with a Debt Settlement Company last year. How is that working for you?

May I inquire about name of company?

I signed up with Huron Law Firm yesterday - but getting cold feet (from reading many posts).

I am afraid that: #1 They might rip me off, #2 Debts will not be settled, #3 My creditors will go after me, #4 My credit will go down the drain etc ... (I owe over 50 K in credit cards - plus other loans and debs).

I'm in a bind with limited options - and am afraid that I made a mistake by going to Huron Law Firm.

Thanks

Eric

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You signed up with a Debt Settlement Company last year. How is that working for you?

May I inquire about name of company?

I signed up with Huron Law Firm yesterday - but getting cold feet (from reading many posts).

I am afraid that: #1 They might rip me off, #2 Debts will not be settled, #3 My creditors will go after me, #4 My credit will go down the drain etc ... (I owe over 50 K in credit cards - plus other loans and debs).

I'm in a bind with limited options - and am afraid that I made a mistake by going to Huron Law Firm.

Thanks

Eric

 

You have to default on your cards in order to use the debt settlement. It does trash your credit. I would never do this. I hope it worked out better for the OP.

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Breeze ...I know that I might sound like an ignoramus :cry2: ... but what is so bad about "trashing your credit" ???

What is worse: 50 K debt I cannot pay back (plus other non-credit card debts ... or a ruined credit ???

At least, in 3-4 yrs, I will be debt free, and can restart to rebuild my credit... I will keep a credit card, and no plan to buy home/car for now (definitively not)...

Between 2 evils, I would rather be debt-free and start rebuilding finances, budget etc ...

Am I completely "off the wall" ????
Eric :wave:

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Usually as part of being in a debt plan, all of your accounts must be closed. Besides once an account gets marked as being in a DMP you'll find other creditors get jumpy and cancel any remaining open accounts

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