My husband and I separated about 3 years ago, with that in mind we both did the most selfish thing- we spent on our credit cards. We racked up so much on our credit cards, that we did not even realize how bad we had put ourselves in debt.
Fortunately we got back together and decided to get a handle on our finances only to come to my husband getting laid off and eventually myself. We had no other choice but to turn to a credit counseling agency which required us to pay over 800 dollars a month to them. We just simply could not afford it, so we turned to a debt settling agency.
Since then, the debt settling agency has taken over 9000 of our money and have only settled 3 bills which doesn’t even amount to the money we have given them. They have told us that the money we have given them goes to attorney and negotiation fees. I do no trust them.
We have been summoned by courts and creditors have taken money out of our savings with little remouce or compassion from the company, they have basically said we are SOL. I am wondering what the best decision is from here as I need to be able to afford the monthly payments and also decrease the risk of anyone taking money from us or suring us. I do not want to declare bankruptcy. I think we can make payments towards our bills, but it needs to be affordable and it needs to reduce this legal risk of geting sued by these companies.
What should I do? I want to take myself out of this debt settling program and perhaps go to credit counseling, however, I need a monthly payment that will be affordable. I’m unsure how bankruptcy works and I need to know what my options are.
In reading your situation and question I’m left worrying about you. I’m worried you are traveling down a bumpy path, inflicting more damage and pain to yourself, simply because you have an emotional reaction to bankruptcy.
Think about this, if you had explored bankruptcy when things first went bad you’d be totally out of debt by now, no lawsuits, no massive fees to debt relief companies, and you’d already be on the way to rebuilding your credit.
It seems an article I wrote recently fits your situation almost perfectly. Please take a few minutes and read “Are You Really Ready to Get Out of Debt? Can You Handle the Truth?”
Once you read the article you’ll understand what I’m about to tell you, you need to let your sacred cows move over to let your solution arrive.
Bankruptcy will end this situation, put it behind you without a tax liability, will stop all lawsuits, will prevent money to be taken from your account, will stop collection calls and let you start rebuilding your life right now.
If you stay on the current path you are simply trying to fix yesterday without preparing for tomorrow.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.Credit Counseling and Debt Settlement Failed But I Do Not Want to Declare Bankruptcy. - Sue by Steve Rhode