is the best answer to do nothing ?
2007-03-12 19:26:14 · 2 answers · asked by Vincent H 1 in Business & Finance ➔ Personal Finance
No. You could start by making arrangements with each creditor by first agreeing to pay off each account for a set amount. I don't mean with monthly payment but rather lump sum payments on each account. Most creditors know that they would not see a cent otherwise. For example if you were to file chapter seven bankruptcy, they wouldn't recieve anything. Start by offering each creditor 20% of the balance that you owe (if you can afford this). Start with the small accounts first. Get everything in writing (stating that the agreed upon payment would be payment in full) before you send the payment in (don't pay anyother way). Save all your correspondence and receipts for payment. Pay using personal check, it's easier to prove if you loose anything. If you pay one account off each month, you could save your credit rating. Start the whole process by closing all of your accounts (if they're not already) because you don't want to be accumulationg interest. Also, forget about offering to make monthly payments, they'll have you paying on them for the rest of your life. If you find that a creditor is not in agreement about your offer, move on to the next creditor. Chances are that the creditors that say no will end up calling to take you up on your offer. Be firm, don't sway on your offer.
Otherwise, if you just forget about these accounts, they will haunt your credit report forever. Some creditors will eventually move on and not pursue you for the money after a time, others will be relentless. Either way, they are all reporting your lack of payments to the credit reporting agencies.
Another option is to file for bankruptcy. I really don't recommend this option unless you have no choice because of having secured property involved such as a house. Then again some people just want a fresh start and choose to file but it does remain on your credit report for 7-10 years. During that time you will not be able to get loans but then again you probably wouldn't be able to with $30,000 in delinqent credit card debt either.
One last word of advice would be; after you get this problem cleared up try to take some classes on managing your money a little better so you won't end up in the same situation in the future.
One more thing, it may appear that 4 of your creditors have retained lawyers however many times they are collection agencies that they've sold your accounts to. Don't deal with the "lawyers"/collection agencies, they are not the ones that report to the credit reporting agencies. You need to deal directly with the creditors when it comes to making offers.
Good luck to you!
2007-03-12 19:57:53 · answer #1 · answered by Mary R 5 · 0⤊ 0⤋
In your case this site can be very helpful FINANCE-SOLUTION.US
RE I have 30.000 in unsecured debt with 4 accounts retaining lawyers I make under 1800,00 a month?
is the best answer to do nothing ?
2014-10-12 11:25:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋