Need some help and options, thanks in advance

[questionman]

Hey guys fairly new member but have been reading up on here. Just really looking for advice from people who have been here before.

Anyhow I'm a 24 year old who graduated college this summer (no student loans) and am currently substitute teaching while looking to get a full time teaching job (which isn't likely until the fall). A few years ago while paying for school, bad decisions, business failures, etc I ran up about 15 to 20K worth of CC debt.

I've gotten a handle on my CC use as I no longer have any tendency to misuse credit as I don't use it at all anymore. I've paid off a few cards and 2 cards were charged off. One of those cards a judgment was issued against me which I'm paying 75 bucks a month off in a payment agreement with the JDB who bought the debt. The overall debt is about 3,000K or a little under now with payments.

I've got two credit cards left with about 10K due among them. I've got a Chase card that has about 4K due and a Citi Card with a little over 5K due. So I'm looking at about 12 to 13K in debt with the judgment added in.

Here is my problem, with paying insurance and stuff of that nature I just simply don't have the money coming in monthly anymore to make these minimum payments. I'm yet to miss a payment but its getting harder and harder. These cards are due again at the end of the month with minimum payments of like 140 and 175 respectfully I should be able to make them then but the following month and into the new year is when it gets iffy.

With the two chargeoffs, a judgment, and few 30 or 60 day lates here or there on my credit, my credit certainly doesn't look that good to begin with. So realistically me being overly concerned with what my next move will affect my credit isn't my concern but finding the best way out of this is.

While getting a total fresh start with a BK certainly seems nice, I would feel somewhat silly filing over 13K worth of unsecured debt. So really I'm asking you guys what are my options. Realistically right now its just two different cards that I'm left it deal with and the judgment that I've got a payment plan set up for.

What can I do on these accounts? I hear the debt settlement companies are largely a rip off and that Chase no longer even talks to them. It would seem risky for me to stop paying the cards and hoping they give me a good settlement number eventually. (As really the one thing I want to avoid at this point is another judgment which I fear would push me into BK over the amount. ) Oh and let the Chase account has been closed by Chase, and the Citi account while still open they have put the CL dollars above the balance every month.

Sorry for making such a long post, but I'm just looking to see what kind of options I have on this. I feel like I"m getting near the end in terms of turning this thing around. Like I said, I no longer have any urge to misue credit and am just so ready to be done with debt and start rebuilding my credit. I feel like I've spent thousands of dollars on these two accounts over the past few years but have maybe made a 1K dent per card because with such high interest and minimum payments I'm basically paying the interest each month and maybe getting 30 bucks bumped off the actual balance. Its like going up a hill on rollerskates, it sucks. And FYI, I haven't consulted an attorney or anything yet as I hear they just try to push you towards BK.

Anyhow, thanks in advance for the help, I'll be right here all weekend to answer any follow up questions you may have.

[espo1357]

Hey guys fairly new member but have been reading up on here. Just really looking for advice from people who have been here before.

Anyhow I'm a 24 year old who graduated college this summer (no student loans) and am currently substitute teaching while looking to get a full time teaching job (which isn't likely until the fall). A few years ago while paying for school, bad decisions, business failures, etc I ran up about 15 to 20K worth of CC debt.

I've gotten a handle on my CC use as I no longer have any tendency to misuse credit as I don't use it at all anymore. I've paid off a few cards and 2 cards were charged off. One of those cards a judgment was issued against me which I'm paying 75 bucks a month off in a payment agreement with the JDB who bought the debt. The overall debt is about 3,000K or a little under now with payments.

I've got two credit cards left with about 10K due among them. I've got a Chase card that has about 4K due and a Citi Card with a little over 5K due. So I'm looking at about 12 to 13K in debt with the judgment added in.

Here is my problem, with paying insurance and stuff of that nature I just simply don't have the money coming in monthly anymore to make these minimum payments. I'm yet to miss a payment but its getting harder and harder. These cards are due again at the end of the month with minimum payments of like 140 and 175 respectfully I should be able to make them then but the following month and into the new year is when it gets iffy.

With the two chargeoffs, a judgment, and few 30 or 60 day lates here or there on my credit, my credit certainly doesn't look that good to begin with. So realistically me being overly concerned with what my next move will affect my credit isn't my concern but finding the best way out of this is.

While getting a total fresh start with a BK certainly seems nice, I would feel somewhat silly filing over 13K worth of unsecured debt. So really I'm asking you guys what are my options. Realistically right now its just two different cards that I'm left it deal with and the judgment that I've got a payment plan set up for.

What can I do on these accounts? I hear the debt settlement companies are largely a rip off and that Chase no longer even talks to them. It would seem risky for me to stop paying the cards and hoping they give me a good settlement number eventually. (As really the one thing I want to avoid at this point is another judgment which I fear would push me into BK over the amount. ) Oh and let the Chase account has been closed by Chase, and the Citi account while still open they have put the CL dollars above the balance every month.

Sorry for making such a long post, but I'm just looking to see what kind of options I have on this. I feel like I"m getting near the end in terms of turning this thing around. Like I said, I no longer have any urge to misue credit and am just so ready to be done with debt and start rebuilding my credit. I feel like I've spent thousands of dollars on these two accounts over the past few years but have maybe made a 1K dent per card because with such high interest and minimum payments I'm basically paying the interest each month and maybe getting 30 bucks bumped off the actual balance. Its like going up a hill on rollerskates, it sucks. And FYI, I haven't consulted an attorney or anything yet as I hear they just try to push you towards BK.

Anyhow, thanks in advance for the help, I'll be right here all weekend to answer any follow up questions you may have.

Look, you just don't have enough debt to file for BK 7, imo.

I would contact the credit card companies and work a settlement. Sure, you don't have the money. So, explain that to them and work something out. You shouldn't pay the cards if you are sweating the money to pay other stuff. Just tell them that the will need to lower your interest rate, so you can make affordable payments. As for the judgement, get to the court and file a reponse to that. Do they have a default judgement on you? If not, the ball is in your court, because they don't want to go to court because it costs them money. If you file a response to their lawsuit, then they will likely just push your case at the bottom on the pile.

Whatever you do, go into the situation educated. You know your right is to file a chapter 7, and you can, and you will go free. So, when you are talking to them, be kind but firm. If you get a jackass on the phone with the bully crap, then hang up until you get someone that you feel comfortable talking to. Eventually, you will find someone that will help.

Now, if it really gets to be too much and you just have nowhere to turn, then I would file. However, you need to stop using credit cards for the rest of your life imo. You are very young, and can rebuild your credit easy. Just don't make the same mistake again, because you will have to wait a long time before you can file a 7 again.

BTW, this is easily the best site on the net for BK, so you do show some promise. Good luck with the job search. Be confident in your accomplishments, get educated about the world around you, surround yourself with good people, and you will get a great job in no time.

[questionman]

Look, you just don't have enough debt to file for BK 7, imo.

I would contact the credit card companies and work a settlement. Sure, you don't have the money. So, explain that to them and work something out. You shouldn't pay the cards if you are sweating the money to pay other stuff. Just tell them that the will need to lower your interest rate, so you can make affordable payments. As for the judgement, get to the court and file a reponse to that. Do they have a default judgement on you? If not, the ball is in your court, because they don't want to go to court because it costs them money. If you file a response to their lawsuit, then they will likely just push your case at the bottom on the pile.

Whatever you do, go into the situation educated. You know your right is to file a chapter 7, and you can, and you will go free. So, when you are talking to them, be kind but firm. If you get a jackass on the phone with the bully crap, then hang up until you get someone that you feel comfortable talking to. Eventually, you will find someone that will help.

Now, if it really gets to be too much and you just have nowhere to turn, then I would file. However, you need to stop using credit cards for the rest of your life imo. You are very young, and can rebuild your credit easy. Just don't make the same mistake again, because you will have to wait a long time before you can file a 7 again.

BTW, this is easily the best site on the net for BK, so you do show some promise. Good luck with the job search. Be confident in your accomplishments, get educated about the world around you, surround yourself with good people, and you will get a great job in no time.

Thank you so much for your thoughts and ideas. Two times in a row I've now washed out what I was tying back to you by accidentally hitting the reply to thread instead of hitting post quick reply after I finish typing so if this seems like its abbreviated thats why.

1) The judgment was one where I lost to the JDB in court. The judge felt they proved the debt to be mine, which I still disagree with but thats what went down. The company has actually been very easy to work with post judgment but being that they are a JDB I'm always worried they'll freeze my bank account or something. I actually think I can file something with the local court saying I can only pay X amount of dollars a month and lock the JDB into that but I haven't really looked into that yet. I will do that shortly.

2) What should I say/do when I call in in hopes of a lowered interest rate. I'd heard this idea on here before while I was reading and really feel it would solve my problem. Both my cards are at 29.99% interest right now which makes for the huge minimum payments. If I could get them to drop the payment by just 15% or so I could certainly keep up with minimum payments now and in the fall when I get a full time job look to pay it off in full by the end of that 12 month period after getting the job. That said, if they agree to lower it how much is typical? Do I flat out tell them I can't afford to pay the minimum payments anymore?

3) Thanks for the advice on the CC use in the future and I can't tell the future but will tell you barring major emergency where ti would be necessary I'll never again get in CC trouble. I've actually been great in that area the past 3 years as one night about 3 years ago when looking at my bank balance/credit card balances I realized just how in trouble i really was. Since then I've either not used CCs at all or paid off what I bought on them right away. Just with all these high balances that were on there I'm still paying for the mistakes I made 3 to 5 years ago. It took learning the lesson in a hard way but I'm confident it won't happen again.

Once again thanks.

[espo1357]

Thank you so much for your thoughts and ideas. Two times in a row I've now washed out what I was tying back to you by accidentally hitting the reply to thread instead of hitting post quick reply after I finish typing so if this seems like its abbreviated thats why.

1) The judgment was one where I lost to the JDB in court. The judge felt they proved the debt to be mine, which I still disagree with but thats what went down. The company has actually been very easy to work with post judgment but being that they are a JDB I'm always worried they'll freeze my bank account or something. I actually think I can file something with the local court saying I can only pay X amount of dollars a month and lock the JDB into that but I haven't really looked into that yet. I will do that shortly.

2) What should I say/do when I call in in hopes of a lowered interest rate. I'd heard this idea on here before while I was reading and really feel it would solve my problem. Both my cards are at 29.99% interest right now which makes for the huge minimum payments. If I could get them to drop the payment by just 15% or so I could certainly keep up with minimum payments now and in the fall when I get a full time job look to pay it off in full by the end of that 12 month period after getting the job. That said, if they agree to lower it how much is typical? Do I flat out tell them I can't afford to pay the minimum payments anymore?

3) Thanks for the advice on the CC use in the future and I can't tell the future but will tell you barring major emergency where ti would be necessary I'll never again get in CC trouble. I've actually been great in that area the past 3 years as one night about 3 years ago when looking at my bank balance/credit card balances I realized just how in trouble i really was. Since then I've either not used CCs at all or paid off what I bought on them right away. Just with all these high balances that were on there I'm still paying for the mistakes I made 3 to 5 years ago. It took learning the lesson in a hard way but I'm confident it won't happen again.

Once again thanks.

Ya, for number 2, you tell them that you can't afford that payment. If they don't want to play ball, then just stop paying. After you stop paying, then you will have some leverage to neg. a better deal (some people here might disagree with me on this, but I think you are better off not paying than paying a card with 30 percent interest, that you can barely pay).

As for the CCs in the future, you need to just build up a cash reserve for emergency.

Its not very complicated, as is life. We just complicate it. Actually, some of us (me) got really messed up when the real estate market did what it did! Imagine losing 50 percent equity in a property in two years! Its amazing. On top of that, taking a 30-40 percent pay cut.

Life is tough sometimes. But, if you get knowledge and continue to expand your awareness, you will not be suckered and you will not make bad decisions. Learn to be a bit more pessimistic when it comes to money, because rainy days are around the corner and the time to save is when the dough is rolling in good! Spending money on crap just doesn't cut it.

[questionman]

Ya, for number 2, you tell them that you can't afford that payment. If they don't want to play ball, then just stop paying. After you stop paying, then you will have some leverage to neg. a better deal (some people here might disagree with me on this, but I think you are better off not paying than paying a card with 30 percent interest, that you can barely pay).

As for the CCs in the future, you need to just build up a cash reserve for emergency.

Its not very complicated, as is life. We just complicate it. Actually, some of us (me) got really messed up when the real estate market did what it did! Imagine losing 50 percent equity in a property in two years! Its amazing. On top of that, taking a 30-40 percent pay cut.

Life is tough sometimes. But, if you get knowledge and continue to expand your awareness, you will not be suckered and you will not make bad decisions. Learn to be a bit more pessimistic when it comes to money, because rainy days are around the corner and the time to save is when the dough is rolling in good! Spending money on crap just doesn't cut it.

Yeah, you are preaching to the choir with the advice at the end there brother. I'll call up the two CC companies in question early this coming week and see what happens. Oh and I'm certainly up for anybody elses advice/thoughts if they have them.

[espo1357]

Yeah, you are preaching to the choir with the advice at the end there brother. I'll call up the two CC companies in question early this coming week and see what happens. Oh and I'm certainly up for anybody elses advice/thoughts if they have them.

send justboke a PM. That wise owl will likely lead you into green pastures.

Also, be sure to check HHM's blog post, great stuff.