What do I do? Creditors want me to pay. I don't have the money to. And they won't work with me until....

Question

I pay the minumum due. What should I do? Credit counseling service? I have a lot of bills piling up and they are going to send to collections if I don't do something. What do you recommend?

Answer 1

Talk to your bank about getting a consolidation loan to pay them off, or put them all on one credit card so you'll just have one payment to send.

Answer 2

Oh! Bridget, Bridget, this is happening so often now days. You people, and yes, older people are getting sucked into more and more credit. I get about twenty preapproved credit cards a week.

It's so easy to just sign below and take it home, isn't it? Well, now it's time to pay the piper Honey.

Go straight to your credit bureau, do not pass go, do not collect money but, go right now.

Bring your w-2 as proof of monies along with your, or several pay stubs. Plead with them in a nice voice, do not argue, do not get mad but plead. Remember your on the wet end of the rope, not them. Then ask them for a solution to your problems.

They may have some ideas that you can use. You'll have to contact all your creditors and throw yourself at there mercy. Do the same thing. Show them what you make and your living expenses.
Right now I don't think you can file for bankruptcy unless your in debt hundreds of thousands and if it's medical, forget it.

You might as well think of yourself as a pauper because that's what you are. You can think about a second job say, at Wal-Mart for the holiday seasons, a lot of business are looking for help at this time of year. Put everything you make on your bills to show them your serious. Hey! Good luck and I hope I helped.

Answer 3

Unfortunately, depending on the collector that gets ahold of your account, you could be sued and your wages can be garnished and if you own your home, they can also place a lien on it. However, according to the Fair Debt Collection Practices Act "FDCPA" you can send the agencies a letter informing them that you only wish to be contacted by mail. This has to be a written letter as verbal conversations do not count when you request this. Also, try to avoid speaking with the collectors. If any of these bills are medical bills, all of the numbers that you put on the entrance form at the hospital will be called. This includes your employer, emergency contact and any other number that you put on the form.

Additionally, even though you may not think that something will be reported to the credit, like a gym membership--it will be by the collection agency.

I would make written contact with the collection agency telling them what you can pay, to not contact you on the phone--and when you tell them that you are going to pay x dollars-DO IT...this will give you a case in court if they decide to take legal action. Good luck...

Answer 4

If you tell them that you don't have the money but you will send them what you can. Come up with a schedule and KEEP to it. Even if it's only $10. any company will take something. Something is better than nothing. Be honest and don't commit to more than you can handle. If you are talking a large debt bankruptcy is an avenue but it carries a long term shadow. You can figure to have a bankruptcy on your credit record for between 7 to 10 years depending on the size. I wouldn't recommend bankruptcy unless your debt is 50k or more. Anything less can be worked out. These companies that tell you that they can help clean your credit, do the same thing that you can do and you can do it cheaper and get the same results. Good luck!!

Answer 5

A debt managment program is probably the best option. You want to avoid bankruptcy if possible. I would do this as soon as possible, try Momentive (not sure if they are in your area or not) or just do a search on debt managment programs.
I just signed up with one myself a few months ago and they weight that is lifted off your shoulders is such a relief. They will make you cut up all your credit cards. If you dont go with them, I would get rid of the credit cards anyway. They just get you in trouble. If you dont have the cash to pay for the item, you dont need it. A consolidation loan is not the answer either because you are just going more in debt to get out of debt. You dont want to pay interest on a bill for 5 more years. Good luck!

Answer 6

You can add a disclosure to your credit report for the accounts that have gone to collections. Just simply state what you have stated here- "they won't work with me" just something saying you tried to work w/ them prior to it getting to this point. Your statement will stay for that particular creditor until it falls off after 7 years.
At this point, there is not much more you can do since the original creditor is not willing to work with you. You can try working out a re-payment plan once it gets to collections. Hopefully you will have enough money saved up during this transition and can pay them off fairly quickly.

Answer 7

there are free credit advisers that deal with just this kind of stuff. call your local bank or tax preparation place, or check newspapers in your area to see what's available. Don't rush into filling bankruptcy, there are long term consequences.try to make the minimum payments, and then set up payment arrangements. most creditors won't report you to collections, as long as they are getting something for you.
i'm going through the same thing myself, so believe me I feel you frustration. Don't be overwhelmed, just try to deal with one at a time, and it can better. Good Luck!

Answer 8

See which creditors report to the credit bureaus. Pay them first. Your cell phone, gym membership, etc may not report to the credit bureaus, and therefore will not hurt your credit if you are late.

Read the below website for more info. It helped me out.

Answer 9

First pay minimum and work with them as well as google to see who offers free service for debt management.

Answer 10

Consolidation or Bankruptcy. You do need to speak with a bankruptcy lawyer to hear all your options, and decide what's best for you now, and in the future.