“Dear Steve,

I just can’t make ends meet anymore. We are trying to stretch our money but there just isn’t enough to make the minimum payments.

How can I obtain a payment plan with credit card companies that I can afford?

David”

The Answer:

Dear David,

It is quite possible that you will not be able to come to an agreement with all of your creditors that will allow you to repay your debt is a reasonable, sustainable and fair way. Each lender seems to care only about themselves and finds no value in participating in a repayment plan that is negotiated just for your situation.

If you want to try to get a payment plan with your creditors, call them. Once you give up and feel frustrated from hitting your head against the wall with them you can click here for debt management information. A debt management plan is a debt consolidation approach where you have one monthly payment and that is then divided up and sent to your creditors.

If a debt management plan is not affordable for you then the only payment plan that creditors must participate in, eliminates all interest and is recognized by law is a Chapter 13 bankruptcy. As much as may want to avoid bankruptcy for personal reasons, lenders are pushing you towards bankruptcy by their blatant disregard for consumers with money troubles.

Big Hug!

@GetOutOfDebtGuy

Other Related Articles to Read

• Chapter 3 – Take a Lap on the Gerbil Wheel of Debt
• Debt Settlement: Top Ten Most Misunderstood Facts
• Clinton Wants to Know “Am I Doing The Right Thing By Repaying My Debt?”
• Forgotten Regulations That You Can Use to Make Your Creditors Treat You Fairly
• Rebecca And Her Husband Are Struggling to Keep The Business Going
• I Am in a Debt Management Plan With Only $100 a Month to Spare. – Lynn
• Trish Says “Credit Counselor Is Going Out of Business And I’m Late On Payments”
• Deborah Wants to Write Letters to Creditors. But is That a Waste of Time?
• “How Do I Go About Making My Credit Score Better” – Antoine
• San Wants To Know “We Need Some Way To Pay Off Our Debts”

Read the full article at GetOutOfDebt.org, click here: How Can I Obtain a Payment Plan With My Credit Card Companies? – David

Veronica

“Dear Steve,

Gawd I hate being in this situation, but I am 45 years old and almost $70,000 in debt. Most of it is from student loans, IRS, and other loans. No credit cards.

I’ve heard that you cannot file bankruptcy with IRS or Student Loans debt. Was wondering if this is true. If so, what other options should I look at?

Will Consumer Credit help me work with them to develop a payment plan I can live with? What other options are out there? I haven’t contacted them regarding making a plan yet – was wondering what all my options might be before I contact them and before they start garnishing my wages

Veronica”

The Answer:

Dear Veronica,

The IRS will come up with a payment plan for you. You should call them ASAP to get that in progress.

On the student loans, if they are government backed loans you may find some relief through the new Income Based Repayment (IBR) program.

Big Hug!

@GetOutOfDebtGuy

Other Related Articles to Read

• I’m Willing to Co-Sign a Loan to Help Out My Guy. – Lou
• My Student Loan is Almost 30 Years Old and I’m In Collections. – Dawn
• I Work as a Correctional Officer With Loads of Student Loan Debt. – Lynn
• We Are Spending Down Our Savings Trying to Make Ends Meet. – Patch
• Student Loans Today are Akin to Debt Slavery. It’s Real and a Life Killer.
• One of Every Four Student Loans is in Default. National Economic Crisis Boiling.
• Bankruptcy Attorneys Report Major Problems Brewing for Holders of Student Loan Debt
• CFPB Gets an Earful of Good Suggestions About Student Loan Disclosures
• Interest Rates on Federal Student Loans to Double
• Student Loans: Necessary for a College Degree?

Read the full article at GetOutOfDebt.org, click here: I’m in Debt to the IRS and Student Loans Only. What Can I Do? – Veronica

Heather

“Dear Steve,

Basics: I just turned 40. I’ve been unemployed for about 9 of the last 18 months. Finally have a part time, minimum wage job. Looking for more work but can’t find anything yet.

I owe around $12-15,000 in unsecured debt.

I agreed to a program with Discover where they reduced my interest rate to 5.9% and automatically take their minimum payment from my bank account.

The other accounts are all several months behind.

I barely bring home enough to pay the discover bill, eat, and keep my car insured and filled with gas.

Now what? Do I answer the collection calls? Do I ask them to settle (and then try to scrape up money from family – or maybe my 401K which probably has around $6k in it)? or do I wait for them to offer settlement? If they threaten litigation, part of me just wants to say – “sue me. you can’t get what I don’t have.”…

Heather”

The Answer:

Dear Heather,

I’m going to suggest that you immediately consider bankruptcy and discharge this debt. At this point a payment plan with one creditor does not remedy your debt situation. You already say that this is one low payment and it is all you can afford on a monthly basis. That approach leaves the other creditors hanging out there and exposed for more abuse and getting sued.

I personally think that it can be more effective from a holistic point of view for you to close the door on the old debt with bankruptcy, stem the wave of collection activity and focus on finding new employment without all the stress and strain you are under now.

At some point your unemployment will run out and if you have not been able to find income by that time all the money you will have paid to Discover will have not resulted in you getting out of debt with them. You will then be faced with bankruptcy at that time.

I would suggest that you contact a local free bankruptcy attorney. Use the online directory of pro-bono bankruptcy lawyers to find someone to talk to.

Your situation is only going to change with the application of income, a payment plan feels good emotionally but is not going to result in what you want to achieve, the elimination of your debt of a razor thin income that is temporary.

Do not take the money out of the 401(k). That money is protected from creditors and you will lose about 30% of it in penalties and fees if you take it out now. Besides, it’s not enough money to resolve your entire debt situation, even if you wanted to settle.

Big Hug!

@GetOutOfDebtGuy

Other Related Articles to Read

• We Don’t Make Enough Money to Repay Our Debt. What Do We Do? – Melody
• Discover Financial Services – Scam, Complaint, Review, or Praise?
• I’m Looking for Honest Answers and For Information About Horizon Debt Settlement. – Melissa
• Can I Negotiate a Settlement with Discover Now They Charged Off My Account? – Debbie
• Discover Credit Card Account Charged Off. What Now? – Greg
• Retail Store Credit Cards: How Many = Too Many?
• Discover Card Says They Will Sue Me. How Should I Handle This? – Catherine
• I Have the Money But Discover Doesn’t Want to Settle. – Michele
• Discover Card Took My Car to Pay a Judgment Against Me. – Betty
• Discover Card Refused Settlement Offer and Now Garnishing My Wages. – Judith

Read the full article at GetOutOfDebt.org, click here: Should I Just Tell My Creditors to Sue Me? – Heather

I apologize in advance for the short response. I am currently away on vacation with limited internet but wanted to give you an answer as soon as possible. Steve

Gasper

“Dear Steve,

I currently owe $2600 on a credit card, which over $800 of it was fees from over a year ago. i went on a payment plan where i was told they’d take away some of the fees. once i completed it and paid $60 a month for a year, they reopened my card without removing the fees. out of principle i refused to pay the past two payments thinking they’d do what i was told. they didn’t. but now i’m in a situation. i will not let it go 3 months late but dont want to waste my money. they offered to close my acct at a discounted amount.

How will this affect my credit if i go that route. or should i just use that money to buy down my debt and make monthly payments

Gasper”

The Answer:

Dear Gasper,

So let me just get clear on this, what you are upset over is that you ran up a debt and they charged you fees. They did not remove the fees as they said so in order to show them you stopped paying the card? An interesting approach.

You had a year of rebuilding your credit under your belt and then you sabotaged it. Not something I would have recommended.

By stopping paying you’ve trashed your credit again. Hell, in for a penny, in for a pound I guess. If you can afford to settle the debt at this point, consider doing that. That will hurt your credit but it will also end this situation. Now, they’ve proven to lie to you and not be reliable, please get the offer to settle in writing and keep your paperwork, for ever, that shows you paid this off.

Big Hug!

@GetOutOfDebtGuy

Other Related Articles to Read

• How Can I Obtain a Payment Plan With My Credit Card Companies? – David
• I’m in Debt to the IRS and Student Loans Only. What Can I Do? – Veronica
• Should I Just Tell My Creditors to Sue Me? – Heather
• I Don’t Want to Pay Stupid Credit Card Overlimit Fees And Charges. – Melissa

Read the full article at GetOutOfDebt.org, click here: I Made an Agreement to Pay and then Stopped to Show Them I Was Mad. – Gasper