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I Can’t Make My Payments and Creditors Want it All? – Bridget

“Dear Jon,

I have 4,900 in credit card debt and all my cards have been turned over to collection. I am doing the best i can, but they are not letting me do payments they demand the full amount or they can split the full amount in to 4 payments. I can only pay about 100 each month to get these taken care of . I have a car payment plus have to provide for my 3 year old son. I am worried they will take my home away from me. I am wanting to get one card paid off, then start working on the other ones. Please tell me what to do. I can afford to send the full amount to them.

Can they work with me and let me make 50-75 dollar payments each month. What can they do if i dont pay the whole amount off in one transaction. Can they take my home, i owe nothing on my home it is a 1992 trailer house.

Bridget”

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The Answer

Bridget,

I am going to assume you reside in the US based on you stating your level of debt is in dollars.

Unfortunately the collection companies can refuse the amount you state you can afford to pay and demand more. That’s the bad news.

However, if you can afford $75 a month, and your total debt is $4,900, to my mind that is a fair monthly payment, and if they will reduce any new charges and interest, you can have this paid off in a few years. Which isn’t to bad.

Your goal of paying one account off then moving on to another is a good idea, and basically what a debt management plan would do for you.

If the collection company decides to take you to court, looking to obtain a judgment, which could possibly affect your home, you need to seek legal advice and also prior to this occurring, complete a full and accurate income and expenditure form documenting what you can afford each month. This way even if you are sued and taken to court, you can show the judge you are doing the best you can. Will this stop any legal action, probably not, the collection firm may be granted the judgment, but the judge can also state they need to work with you and as long as you continue to make the agreed payments, no further action will be taken against you. Of course all this can depend on what state you live in and that state’s laws as it can vary state-to-state.

Also, it would be rare and a hardship on you for the courts to allow your home to be taken for the amount of debt you state you have.

Use the free How to Get Out of Debt Calculator to review all your options.

I hope this helps.

Regards,

Jon

I Cant Make My Payments and Creditors Want it All?   BridgetJon Emge is an experienced UK debt advisor who has helped thousands and thousands of people in the UK to deal with problem debt. Jon specialises in finding good solutions for problem debt using a variety of UK specific techniques.

If you have a question you’d like to ask about how to get out of UK debt, just use the online form. I’m happy to help you for free.

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