Gloria da beautifulest
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You should get credit counseling. Talk to one of their representatives and explain your situation.
Besides it severely affecting your credit, you CAN end up in court. That's happened to people I know before. |
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BMW BFD
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I find it interesting that you were able to buy a house with only making 28K a year and being 25K in debt...but non the less, if you stop paying it will be reflected each and every month until the sue you, and in court they can freeze your account and garnish your wages up to 25% of what you make to get thier money. |
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bdancer222
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If you stop paying, they will take you to court, win a judgment, attach your bank accounts, garnish your wages, and lein your property. All of which will further damage your credit.
Check this site: http://www.nfcc.org/ . This is Consumer Credit Counseling Services (CCCS), a legit, non-profit company offering free credit counseling. They also have a debt management program available, if you qualify, at no fee. They can look at your finances and advise you how to proceed.
Beware of most debt relief/counseling companies. They take their fees up front and literally trash your credit. |
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Daniel
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Hi,
I used "Credit Solutions" to settle my debt.They managed to reduce my debt up to 58%.It's legitimate.I came accross this company on NBC News Special Edition.Check it out here:
http://tinyurl.com/2gbdzu |
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ponygirl
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Go find a reputable credit councilor!! If you just stop paying,you will ruin your credit and your interest rate will go sky high.Please go get some help! |
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katatins
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The Citizens' Advice Bureau (if you're from the UK. If you're American I'm sure there'll be an equivalent) has a debt advice department exactly for people in this situation. Go and see them asap as they can re-organise your repayments so it doesn't all seem so daunting. Obviously they will cut your cards up for the time being and you may be blacklisted for a while but if you just stop paying everything your house will get repossessed and you will have to pay massive penalties.
Don't suffer in silence but go and speak to a financial advisor. ASAP. |
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tim t
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Credit card debt consolidation adds up all your unpaid balances and converts them into a single payment. This payment is far lesser than each of the individual payments.
When you finalize a plan with a debt consolidation company, the company repays your dues to your creditors. Then you make a single payment to the consolidation company every month. Your average new interest rate is much below the old interest rate.
http://debts-to-wealth.com/category/Credit-Card-Debt-Consolidation.html |
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ugotthat
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If you are in the US seek credit counseling fast and try to get the interest reduced if possible. Once that happens you will not be able to use that card. Either way you slice it your credit will have late payments on it since your debt to income is so high and you have a mortgage which by all means pay on time. DO NOT TAKE A HOME EQUITY LOAN.
Steps to take now:
1. Stop using all credit cards.
2. Pay the lowest credit card balance first.
3. Set some cash aside now for emergencies.
4. Pay your mortgage
5. If possible get a roommate
6. Get a better paying job or a second one.
7. Establish a budget and stick to it.
8. Have a garage sale to get cash.
9. DO NOT TAKE A HOME EQUITY LOAN.
As each lowest credit card is paid off you will be able to pay more on the next one while continuing to pay minimum on the rest. Also some credit cards companies do not report late payments to the credit bureaus until after 60 days. Find out which of yours do assume 30 days for the rest. You will still get hit with late fees which at this point is unavoidable but your credit can be kept intact.
Freezing bank accounts etc is rare if true at all I've never heard of it so don't worry about it.
Follow my plan as outlined above and you should be all rght
but be prepared it will take several years. |
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∞infiniti∞
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The credit card company will attempt to collect the debt from you for about 180 days. After that, it is written off and charged to P&L (Profit and Loss).
In recent years Junk Debt Buyers have made billions on written off debts. After a debt is charged off, it is bundled in a large portfolio and sold to a JDB at a large discount. Often, this could be as little as 2 or 3 cents on the dollar.
JDBs have the right to collect the face amount of the debt plus interest and any fees.
Although JDBs have a right to collect from you, they may not always have the right documentation to legally back up their claims.
For this reason some JDBs can be ruthless and have little concern for the law when it comes to separating you from your money.
If you are ever approached by a JDB about an old debt, it is important that you are aware of your rights under the Fair Debt Collections Practices Act (FDCPA).
Hope this helps. |
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Deb S
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There are a number of credit counselors that will work with your creditors to get your interest rates lowered so you can possibly manage the payments. If not, look into bankruptcy but be aware that your credit will be messed up for up to 10 years. |
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mr_pokealot
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I dont understand how people get in debt. They spend what they dont make. Well, anyways, you have to stop using that card. Which means you HAVE to pay the 25k. If you dont, they will take your car/house and empty your bank. You credit will also go down the drain. Take your credit card, and stop using it. It may be useful but its spending more of the bank's money. Pay with cash only, and you will see what you've been doing wrong. |
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