Debt settlement negotiations/payoff

[Charles]

Thanks, I understand your frustration; there is an entitlement mentality and lack of responsibility that is pervading our culture and taxpayers such as you and myself pay for their irresponsibility - I am asking for advice on what others have done to get out of the grip of cc debt, as it can be tough to break free from.

As mentioned above, consolidation to a fixed rate plan, seems like a reasonable route to go.

My wife and I followed Dave Ramsey plan. I highly recommend his book. I'm not a very strong reader but read the entire book in one night.

Basically it's baby steps. Step one: save a $1,000.00 dollars for emergencies.

Step two: Write all your debts down with the smallest at the top and work down to the largest. Once you pay the first debt off take those payments and apply them to the second debt. Once the second debt is paid off apply the 1st and 2nd debt payment to debt #3. Once you get the ball rolling you can start doing some damage to your financial responsibilities and before you know it your out of debt.

[topshot]

Topshot,

Good for you for wanting to get out of debt! My wife and I made this decision years ago and it's been a blessing.

Best of luck in accomplishing your goal. It's well worth the effort.

Thanks Charles. we just paid off our second vehicle in full this summer and are now working on c.c. I feel an urgency to pay that off within the next month. It seems like an impossible feat and will take a miracle to pay off what we owe, but i believe in miracles and the God of the impossible can do anything he likes.

keep a lookout for my soon coming classified where after i inventory my items, will be offering up some nice stuff for quick sale.

If i need to sell my house, i may even do that too; I've always wanted to move out to a small piece of land away from town...

[topshot]

My wife and I followed Dave Ramsey plan. I highly recommend his book. I'm not a very strong reader but read the entire book in one night.

Basically it's baby steps. Step one: save a $1,000.00 dollars for emergencies.

Step two: Write all your debts down with the smallest at the top and work down to the largest. Once you pay the first debt off take those payments and apply them to the second debt. Once the second debt is paid off apply the 1st and 2nd debt payment to debt #3. Once you get the ball rolling you can start doing some damage to your financial responsibilities and before you know it your out of debt.

I have seen his plan and listed to him on the radio over the years, my wife went through the course too. unfortunately its not as cut and dry as he makes it out to be and we have not applied it successfully.

[topshot]

If you haven't missed payments, I doubt they're going to want to settle for less.

Why not sell the stuff you want to sell, use all that money to knock down the card with the highest interest rate, then use the snowball method to pay off the rest?

I think if you do any kind of settlement, it will affect your credit. Regardless if you use credit or not, I wouldn't want to screw up my score, if I could help it.

Thanks, That is what our current plan is. pay off smallest loan/highest rate, then move on up. unfortunately I've had over $1250 in auto repair cost (my cost since i do all the work myself) the past 2 months which has thrown us way off track. I've been selling off fishing lures the past two months to help cover the cost, so if you need anything shoot me a pm lol.

[txjustin]

Thanks Charles. we just paid off our second vehicle in full this summer and are now working on c.c. I feel an urgency to pay that off within the next month. It seems like an impossible feat and will take a miracle to pay off what we owe, but i believe in miracles and the God of the impossible can do anything he likes.

keep a lookout for my soon coming classified where after i inventory my items, will be offering up some nice stuff for quick sale.

If i need to sell my house, i may even do that too; I've always wanted to move out to a small piece of land away from town...

I have seen his plan and listed to him on the radio over the years, my wife went through the course too. unfortunately its not as cut and dry as he makes it out to be and we have not applied it successfully.

Actually it is and you're already doing it.

Just put every penny you have into paying it off as fast as you can. Don't stress beyond that. No need to possibly ruin your credit for something you are up to date on and can pay a lot on every month.

[howzitbra]

I guess I'm a little lost on this, some of the debt on the credit cards is from medical expenses and you feel that you shouldn't have to pay it? Just trying to understand this.

[Texastaxi]

Thanks, That is what our current plan is. pay off smallest loan/highest rate, then move on up. unfortunately I've had over $1250 in auto repair cost (my cost since i do all the work myself) the past 2 months which has thrown us way off track. I've been selling off fishing lures the past two months to help cover the cost, so if you need anything shoot me a pm lol.

Like Justin said in the post right above, it IS working ... just get back on track.
If you're not in any kind of hardship, I wouldn't risk ruining your credit just to get it paid off THIS month. Sell that "extra stuff", apply that money, and then just pay every extra penny towards the debt. It'll be gone before you know it.

I'll be looking for your clearance sale thread!

[Texastaxi]

I guess I'm a little lost on this, some of the debt on the credit cards is from medical expenses and you feel that you shouldn't have to pay it? Just trying to understand this.

If you took the time to read the whole thread, he's just trying to figure out the fastest way to eliminate this debt. One of those options was to see if the creditor would take a lump sum payoff. He never once indicated that he was trying to skirt his responsibilities.

[howzitbra]

If you took the time to read the whole thread, he's just trying to figure out the fastest way to eliminate this debt. One of those options was to see if the creditor would take a lump sum payoff. He never once indicated that he was trying to skirt his responsibilities.

I did take time to read the whole thread! I think I get it now, he's just trying to get away from the interest?

[topshot]

Actually it is and you're already doing it.

Just put every penny you have into paying it off as fast as you can. Don't stress beyond that. No need to possibly ruin your credit for something you are up to date on and can pay a lot on every month.

Thanks for the encouragement.

I will say that my wife and i have not been on vacation since before the kids were born 2011 was the last one, we both drive vehicle w/+200k miles on them(paid for), haven't been to a movie in +4 years and very rarely go on dates ( something i'd like to change).

It seems like no matter how much we trim off the plate the headway is slow, it is a long road to full freedom financially. I'm just ready to be done!

[topshot]

I did take time to read the whole thread! I think I get it now, he's just trying to get away from the interest?

thanks for your post, i'm looking for what methods you all have used to eliminate C.C. debt.

I put in for a 2nd job to help bring in up to an extra 8k per year, so hopefully i get it! it could even lead to a different career in time.

[Charles]

I have seen his plan and listed to him on the radio over the years, my wife went through the course too. unfortunately its not as cut and dry as he makes it out to be and we have not applied it successfully.

Keep at it. It works. If a big dummy like me can do it anybody can do it.

Keep in mind; You didn't get in debt over night so don't expect to be able to pay the debt off over night. It takes time and determination.

Also be sure to prepare a budget every month/pay period and stick with it. If it's on paper you are more likely to succeed.

I'm sure you already know this but stop using the CC too.

[BIG IRON]

I might be late to the party but make sure that they don't report it as a settlement if you go that route. It will be reported negatively.

[Kdog]

My wife and I had a lot of credit card debt when we first got married, right after college. I got a personal loan from the bank and paid off the credit cards. It was still debt, but at a much lower interest rate.

[topshot]

Keep at it. It works. If a big dummy like me can do it anybody can do it.

Keep in mind; You didn't get in debt over night so don't expect to be able to pay the debt off over night. It takes time and determination.

Also be sure to prepare a budget every month/pay period and stick with it. If it's on paper you are more likely to succeed.

I'm sure you already know this but stop using the CC too.

yes sir, budget has been in place, month over month for awhile now; sometimes unexpecteds have ruined it and my emergency fund, this month looks like the closest to the goal so far and i have not put anything on credit this year other than medical expenses.