I have seriously high bills that I can't pay. But I don't know how to approach the people I owe that money to and successfully talk them down. I've heard that it's possible, and I've known some people that it worked for, but I'm clueless. Help?
2007-03-01 08:14:55 · 7 answers · asked by ? 3 in Business & Finance ➔ Personal Finance
Dave Ramsey has a good discussion of this in his book "Total Money Makeover". It is in most libraries & bookstores. IN general, if you are already behind on your bills, this is what you do:
(1) Gather up about 50% of the balance on the smallest debt.
(2) Call that one & offer to settle. That means they give you a WRITTEN offer of a SETTLEMENT IN FULL & you send them a MONEY ORDER or WESTERN UNION pymt for the portion of the balance they agree to accept.
(3) If they refuse (& they almost always will the 1st time), keep trying for a few weeks. If they don't accept, move them to the bottom of the list & go on to the next smallest debt.
(4) IMPORTANT: NEVER, NEVER, NEVER give them access to your bank account by either authorizing a draft or by sending a personal check. Most collectors are bottom feeders & will CLEAN OUT YOUR ACCOUNT.
(5) Just-as-IMPORTANT: Do this YOURSELF. Do NOT go to one of those crappy debt mgmt places advertised during Jerry Springer or whatever. Many are already under federeal investigation & all will screw your credit worse than you could do on your own.
I wish you all the best. I have been broke, so I know how you feel. I hope you will find the peace of mind I now have.
2007-03-01 08:23:44 · answer #1 · answered by Tom's Mom 4 · 1⤊ 0⤋
Some places require you to pay off your bills in full.
Others are willing to take a cut.
Your best bet is instead of avoiding them, explain your situation and offer to pay a small amount. Divide up all of your bills and pay 10-20 bucks to each. Maybe pay a little more to the smaller ones to get them paid off quickly, and then add that money to the next smallest. Eventually you will only have a few big ones, and all of the cash will be going towards those.
Avoid adding more debts in the meantime - do without stuff, or sell some stuff off to pay for things. Once you have gotten on top of your bills, then you can go back to buying stuff - but try to be aware of what you are buying, how you will pay for it, and how much interest you will end up paying. Interest is the biggest killer - and a lot of people don't realize how damaging it is.
2007-03-01 08:24:39 · answer #2 · answered by joemammysbigguns 4 · 1⤊ 0⤋
So in the journey that your buddy owed you $500, you would be somewhat chuffed for him to speak you into accepting $3 hundred - and in basic terms forget approximately the different $2 hundred. i are not getting it. in basic terms on the grounds that's a economic business enterprise or a company, why do human beings by some potential have faith that's completely alright to dodge element of their duty to pay off what's owed? Overdraft expenditures, expenditures of interest and different expenditures could all be decreased if all companies flatly refused to barter yet in basic terms sued for the money they are owed. u.s. might regain a number of its former glory if debtors jails have been introduced returned as an outstanding deterrent to human beings the two not taking their debt heavily in the different case taking on extra desirable than they are in a position to arise with the money for interior the 1st place. Is it achieveable for somebody to bypass via 38 years of grownup existence without ever as quickly as being in debt? sure of direction that's. i've got performed it and there are various extra like me who have faith in honoring commitments
2016-10-17 01:08:44 · answer #3 · answered by ? 4 · 0⤊ 0⤋
I tried to get my credit card company to come down on the interest. I never missed a payment or was late but they said no. If you find out, please let me know.
2007-03-01 08:19:46 · answer #4 · answered by girldog66 2 · 1⤊ 0⤋
Truthfully, I just have my lawyer do it and they take care of the problem!
2007-03-01 08:57:19 · answer #5 · answered by gatorgirl 5 · 0⤊ 1⤋
#1 do not go for bankruptcy!
gathering my thoughts and will fill you in!
2007-03-01 08:23:14 · answer #6 · answered by Anonymous · 1⤊ 0⤋
give them your sob story, it should work
2007-03-01 08:18:27 · answer #7 · answered by Anonymous · 0⤊ 1⤋