"Debt Go To Guy" Blog! - Latest Comments

Re: Question?

Lisa — Sat, 21 Nov 2009 11:01:17 -0000

Good Morning. . .Here is my Question

I have a Capitol One credit card that has went to collections. The balance on the card was $775, after all the late fees and interest the collection agency told me it is no around $1,850. I want to settle this debt but I need advice on what is a reasonable amount.

Befor it went to collections I was paying, what I could at the time which was between $20 - $30 a month. On top of the interest, they were still charging me late fees because the amount I was paying was not enough.

I want to settle this debt but I need advice on what is a reasonable amount.
I am willing to pay a lump sum or maybe even 2 payments for a total of $900. am i being unreasonable?

Re: “Credit CARD Reform Act of 2009″ – What’s It Mean To You?

Mike Luttrell — Wed, 04 Nov 2009 17:26:23 -0000

Hi Jesse,

Great summary of the provisions of the law. In my personal case:

Has this happened to you? NO

How has this lowering of your credit limits and these increases to your interest rates (and monthly payments) affected your life so far? My limits have not been lowered and since I pay my balances in full every month rates have not affected me.

How might it affect your Holidays this year? My status of being in search will have more affect that anyhting that the credit card companies have or will do.

Re: New York Attorney General Announces Nationwide Investigation Into Debt Settlement Industry

tepoyglobal — Fri, 30 Oct 2009 17:57:54 -0000

Thanks for the post I really need to know this. It’s very informative and very helpful. Just a little info a Debt settlement which is also called as debt negotiation is a process in which your creditors ready to reduce some amount of you owe, it may be up to 60% your amount.
The philosophy behind the debt settlement is very simple. This debt settlement will reduce what you owe so that you can pay off your debt faster and easier. You can consult the debt settlement company for help to reduce your debt balance. ... If your creditor knows that you are working with the consumer credit counseling then they will note that information on your credit reports.

Re: Question?

Lisa — Wed, 28 Oct 2009 20:40:57 -0000

Situation: Business credit card debt:$10,000.00
Will settle for $9,000.00
Bank said account will be reported as SATISFIED. What does it mean?
I will received a 1099 for $1,000.00 which will be reported as income and will just pay tax on it. Does this have an effect on my personal credit score?

Re: Question?

Steven Katz — Sat, 24 Oct 2009 03:25:04 -0000

Hello Jesse. The statement "Once you get an acceptable settlement offer in writing, send a check. But first... Write your account number for the account you are settling on the check and in the memo write "FOR PAYMENT IN FULL." Do you mean the check should be for the entire amount, or are the CC companies willing to make payment plans with a settled reduced amount? i.e. I have 25k with Chase. Thank you.

Steve

Re: Question?

John — Thu, 22 Oct 2009 17:47:50 -0000

I had an American Express business card which was made out to both, my business and my name and for which I am personally liable. My business went under and I stopped making any payments. AmEx has been trying to collect by calling and by having a collection company call for about six months. Now they are suing me and my company, which is now a name only since it is no longer operating. How do I defend myself against a lawsuit by AmEx and if I’m able to borrow some money from my family, can I still try to negotiate a settlement. I am being sued for about 100k…if I can get my hands on any money, it will only be 5-10k…what are my options, thank you for any help

Re: Question?

Tara — Thu, 15 Oct 2009 15:42:19 -0000

Hi There!
I have a credit card balance of $9300.00 to a Bank of America American Express card. My interest rate is 15.6%. My monthly payments are roughly $240 for this account. It is becoming increasingly harder and harder to pay this amount each month. I recently saw something on the Today show about Time Barred Debt and that if you are in collections for a certain number of years (depending on your state) the debt then comes off your credit report and you no longer owe. Is this true and could I stop paying this credit card bill and let the Time Barred Debt take place and wait for the debt to be off my report? I know I will get poor debt from having the account go to collections but if I wait for the Time Barred Debt to take affect can I get rid of this debt? If not, what suggestions do you have to get this reduced or pay it off faster? I can only afford the minimum.

Re: Question?

CHRIS — Mon, 12 Oct 2009 23:42:55 -0000

I LIVE IN LAS VEGAS AND HAVE ONE CARD TOTAL IS 11,800.00. THIS IS FROM US BANK. MY QUESTION IS WHAT AMOUNT DO YOU THINK I CAN SETTLE FOR. THANKYOU.

Re: Debt Relief Options: Bankruptcy

smalinski1 — Sat, 26 Sep 2009 20:48:38 -0000

Jesse:
I agree that the new laws passed for Bankruptcy have only hurt those of us who realy need help. I have addressed this issue with senting out emails to all in Washington - yes -ALL. Please change the bankruptcy laws to help all of us who have lost our jobs. (President Bush error).
I am very grateful that you are so pro active in this difficult economic times we are experienceing.
I am one of those folks who do not know where to turn to for help. Banks have been given all the control over a persons live. How could all of this happen?
Thank you for being out there.
BR's
Sylvia

Re: Question?

ljm2009 — Fri, 11 Sep 2009 16:25:45 -0000

Are you affiliated with the BBB?

What is your fee for debt settlement, and is that different that debt consolidation?

Re: Question?

ljm2009 — Fri, 11 Sep 2009 15:50:59 -0000

Hello~ I am trying to figure out which is best for me! I have about 25k worth of unsecured debt. I put about 9k in a debt consolidation program as they were able to negotiate the interest I am paying. The rest I was able to negotiate on my own. However, I am still paying too much a month and can't afford it! The amount I am paying is just the minimum due so it will take me FOREVER to pay it off! I am considering chapter 13 or debt settlement. I know about both but am unsure about debt settlement. I hear that creditors don't have to negotiate and they could still sue me. What do you recommend?
Thank you!

Re: Question?

giinger — Thu, 27 Aug 2009 11:40:12 -0000

Do you have any information on the Company Debt Free Four You ? I was going to use it to pay off my debt.

Re: Question?

Betty — Mon, 24 Aug 2009 15:19:20 -0000

Can my creditors take my house if I fall behind on my credit card payments?

Re: Question?

Julie — Fri, 21 Aug 2009 14:49:29 -0000

I have been unemployed for 6 months. My unemployment checks allow me to pay the minimum balance on all my unsecurred debt, my storage & cobra. I have not bee late on any payments. It also allows me an extra $150 a week for groceries & gas. Therefore, there is no savings. When I find a job, I will need good credit because I will be searching for a place to rent and will need to buy a car. I have about $41K in unsecurred debt + an additional $2000 from my school loan. I am interested in the debt settlement option. My question is... should I wait to start this program until I have passed the credit checks for a car and rental of an apartment?

Re: Question?

callamar — Wed, 19 Aug 2009 15:11:26 -0000

Hi, my wife and I are currently in a credit counseling service, "Credit Guard of America". Our debt is $17000.00 and our monthly payments are $598.00 + $35.00 fee. We have been in this plan for a little over a year and it has been helping out. We have reduced our debt by about $5000.00. The interest rates vary between 6% and 10% now, vs 18%-22% before the plan. We feel that the ideal option for us is the debt settlement. Can we or should we resort to the debt settlement option, even if we are already enrolled and using the credit counseling service? My answer to this question is a yes; however, I would appreciate your suggestion and input! P.S. Also, I was laid off in January 2009 and in May 2009 started working again; albeit underemployed. I made $62,500 last year and this year I'm lucky to make half of that. We have exhausted our savings and we are in the process of a loan modification for our mortgage of $2670.00/mth through an attorney that was referred to us.

Re: Debt Relief Options: Accelerated Debt Pay-Off Plans

Jody — Sun, 16 Aug 2009 00:33:40 -0000

Hi Jesse,

I don't understand option #3 above. Please use an example - such as I have five cards. There is $10,000 @ 12% on one, $4,000 at 9.9% on the next, $5800 at 11.8% on the third, $2250 at 15% on the fourth, and $250 at 18.9% on the last. Please tell how to use thise formula on this example. I am not good at math!
Thanks!

Re: Question?

Jody — Sat, 15 Aug 2009 13:53:12 -0000

2 questions:

1) My computer tells me that the file is damaged and I am unable to download anything from Day 3.

2) What if someone is long-time unemployed, living from check to check, with no cushion. Unemployment will run out in about 2 months, no house--just renting...and that's the extension. Is there any way to obtain funds (family and friends already have already loaned) so that I can pay bills and start getting out of debt? Can you give me a job? (Sales) or refer me? I have a great education and have always been successful until now, Thanks for reading.

Re: Question?

sandy — Thu, 13 Aug 2009 19:51:58 -0000

I have been on unemployment for the past 6 months. If I pay back my 401k loan of 39k, i will not last long with morgage and living expenses. I have 2 more weeks to redeposit my 401k loan into a IRA account. I also have about 8k credit card balance that I am paying min payment. Both are zero interest until November 2009. After that they will be about 22%-25%. Any suggestion is greatly appreciated!

Re: Question?

ejholt — Thu, 13 Aug 2009 13:25:49 -0000

I have been unemployed for 11 months. I had set aside 9 months cash reserve to pay my bills. Over the past 3 months, I have stopped paying most of my unsecured debt ($110K), as I don't want to deplete my cash reserve and not able to pay my living expenses, i.e. rent, food, etc. I am now considering bankruptcy, as I believe this is my last resort. I am concerned how this will effect my ability when looking for new employment. Should I be up front with a new potential employer and explain my current situation? Do you have any other suggestions on how to handle this will a potential employer?

Do you think it is required to have a credit card to increase your credit score & worthiness? I am so fed up & disgusted with the tactics that these banks are using, while they are holding 1 hand out asking for tax payers to bail them out and the other hand out penalizing good paying customers.

Re: Question?

vanessatitan105 — Wed, 12 Aug 2009 17:49:51 -0000

I have a question in regards to the debt analysis. All of my debts have gone seriously past due and have now been charged off and placed with a third party collection agency. I have the current balances owed, but no average interest rate as the accounts are charged off. In addition to that, I want to settle these debts for less than the amount owed. So my question is, how do I input that information into the debt analysis form?

Re: Question?

Jody — Wed, 12 Aug 2009 17:33:15 -0000

How do I know how much the credit counseling program will cost me? I see the debt analysis, but how did you come up with the figures it gives?

Re: Question?

Chris — Mon, 10 Aug 2009 01:32:19 -0000

I would like to try debt settlement but I owe $40,000 to Citibank and believe that I will be sued. Bankruptcy seems to be my only alternative. What do you advise?

Re: Question?

Jody — Tue, 04 Aug 2009 17:51:41 -0000

Do you have a suggestion about how I can settle the debt with a former apartment complex?

They are charging me $1633 for leaving without 60 days notice, $1633 for breaking the lease, and another $1633 for fees for the collection agency they sent it to. That's a total of $4999, with 10% per annum interest. How much interest will this be? How is it compounded? I don't understand the "per annum" business. Also, they say I must have it paid within 8 months, or they will garnish wages. I have offered a payment of $500 per month for 10 months. This will be difficult, but not impossible if my income continues as it is. If it goes up, it will be far easier. Please help . . .

Re: Question?

scott114 — Tue, 04 Aug 2009 08:00:22 -0000

I'm considering debt settlement but,I have one question.Do you have to include all of your cards,even if some of those are low interests and low balances?

Re: How Credit Works

susanchamberlain — Fri, 31 Jul 2009 15:50:25 -0000

Hi Jesse,

This information has been invaluable. I have been doing exactly what you describe, keeping my credit score good by making on-time, minimum payments only to get more in debt!

I talked to a credit counselor, and they wanted an extra fee monthly to pay my bills for me, which made no sense to me at all. Then I went to a bankruptcy attorney, and I was told the negative impact would be on my credit report for more than seven years. I was at my wits end.

My friend told me about your site, and after having read this article, I am enrolling in the Debt Guide myself. I will talk to you as soon as I finish the financial education, and look forward to settling my debt of $85,000 as soon as possible.

Thank you so much!
Susan