So I am trying to help my friend who is a single mom now-try to take care of debt?

Question

This was totally unexpected that her fiancee of 10 yrs just to get up and leave -she makes good money but has two kids and other expenses-Has anyone ever heard of writing credit card companies to see if they can write off the debt???? She has lookd into debt consolidation but -they want to charge her up the wazoo for their help

Answer 1

If it is a legit debt consolidation company then they will not charge her "up the wazoo" for help. They can only legally charge I believe in our state up to about $20-$25 for the set up fee, then a smaller than that monthly fee. Or something to that effect. Make sure she is going through a legit company first of all, by going through government only websites. Other places try and will scam the heck out of you! Most credit card companies won't "write off" the debt completely, but some will take pay offs or settlements and write off the remainder. She could file bankruptcy depending on the severity of her situation. She could also just set up payment plans with certain people and pay a little at a time, if you are paying and its not on your credit yet they can't report you. If you are paying and its already on your credit, they should mark you as a current payer..which would help her score. Those types of things and more, should hopefully be a good start! Good luck!

Answer 2

If the finacee is co-signer on any of the debt, she can sue him for his share of the balance. At the very least, she can put a lean on him. If he is the father of the child, she can get child support.

But, I can tell by your question that she needs help now. I would suggest an immediate shut-down on the bills to preserve cash flow until she can recover. By shut-down I mean cut off the cable TV. Reduce the cell phone bills to nill and no eating out or fun stuff for a few months. If she has a car financed, she may look into selling it an buying something that is paid for. Have her search for anyway she can increase her cash flow while reducing the amount of money going out. Ask a relative to baby sit if possible.

If at all possible, she could get a second, part time, job. This really sucks for her but drastic times take drastic measures.

Have her also go purchase Ben Dover's book called "Back Off". You can buy if off of his website directly. He will teach her how to deal with the phone terrorist better known as collection agents. I've posted the link below.

Wish I could help further!

Answer 3

If her fiancee of 10 years is the father of the child then she should seek child support. Check to see if the state she is living in has a "common law" statute. She may be able to prove that they were common law married and that he should pay some type of alimony.

Use www.bankrate.com to learn more about budgeting and credit card debt.

If the credit card companies write off the debt then they are going to report that adversely on her credit report and she certainly doesn't need that especially since she is going to be trying to build a life for herself and her child.

If she is not making a lot of money then she might want to consider public assistance.

Sorry I can't be of more assistance.

Answer 4

The credit card companies will not just write-off the debt. But their sole interest is getting their money so they are usually willing to work to set up some kind of plan to pay it off. One thing to be prepared for is that they will cut off the account from new charges until the balance is paid in full.

Answer 5

I have never heard of credit card companies just writing off debt. The debt consolidation people are over priced and many of them are scams.

What your friend needs to do is study up on personal finance. I recommend getting "Personal Finance for Dummies". Don't let the name scare her off. It is a great starting place to learn about personal finance. She needs to understand budgeting, financial planning, and the effects of debt. Before she can do anything she needs to know exactly where she stands. How much does she make, how much does she owe, and how much is left over? With that information, she can come up with a plan.

Answer 6

If the fiancee is the father of her children, make sure she gets a lawyer and goes after him for child support. Had she actually married him, she'd be in a better position to get spousal support, something to think about next time. In the meantime, she can negotiate with the companies, but she also needs to think about increasing income, decreasing expenses, and perhaps selling some of her stuff. I'd also recommend that, if money is tight, she go to some social service agencies and get some help. They can help with utilities, food and holiday gifts for her kids. She can find local agencies through United Way or through www.guidestar.org.

Answer 7

It will only be hit and miss. It depends on who she speaks to at the agency's she calls. If she can really make them feel sorry for her, then they might be willing to work out some kind of a negotiation. Most likely if she calls every single place that she has a debt, and trys to talk each of them down 10 - 50% of what she owes, then her chances will be good that her overall debt will be reduced by 25%...and if she figures that part out, then she can get back in touch with all of them to set up payment arrangements that she can afford amongst all of them.

Answer 8

Have her look into Credit Solutions. I went thru them and had no issues. So have several friends and family members.
good luck.