Furloughed State of Hawaii Employee Looking for Debt Help Solutions

In 2008, my husband lost his job, and while he did receive unemployment, at the same time I (a State of Hawaii Employee) was furloughed, causing a decrease in our income. So I contacted my creditors, explained my situation and was put on a program to reduce my monthly for only a year. (the program started in 2010, I struggled paying my monthly credit card fees in 2009). Now the program has ended and the credit card companies will not help with any more programs, they say am not far enough pass due and that I should contact Credit Counseling to reduce my payments. I have a second on my house with Bank of America, who also allowed me to be on a program to reduce my monthly for a year, which ended this June. So now all my credit cards and second mortage have return to the original monthly fee and my union agreed to a five percent cut in pay, which started on July 20, 2011. I am unable to pay on all this debt monthly.

Do I have to be behinde in my payments 3o, to 60 days before my creditor offere me a reduced payment plan, or even forebearance. Can I write to a Department at the Bank to negotiate a payment plan. Why won’t they work with me, what in the world is so wrong with trying to prevent a problem before it starts.

This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.

This is information that was submitted by a third party and not generated by GetOutOfDebt.org or Steve Rhode.

1 thought on “Furloughed State of Hawaii Employee Looking for Debt Help Solutions”

  1. Creditors tend to develop policies and procedures for managing collections that can appear nonsensical when viewed on a case by case basis, but that make sense to them given their size and overhead of their recovery operations.

    You can contact a credit counseling agency now or look to enroll in additional hardship plans that may be available from your creditors directly. Some credit card lenders will offer a reduced monthly payment plan within a couple weeks of being late while others may not make plans available to you until you have missed a couple payments.

    Whether you enroll in a credit counseling agency administered debt management plan for the unsecured debts or try to make the same (or better) lower payment arrangements on these debts yourself, you can start to calculate whether the option will work for you right now. Add the total of all your unsecured credit cards and calculate what 2.2% of the total is. That will give you a close estimate of what your monthly payment will be (providing all creditors will participate in the plan) for the next 48 to 60 months.

    For example:
    Total of all credit card balances: $18,000.00
    2.2% of total: $396.00

    Writing to the bank typically will not yield the results you are looking for. Speaking with them after falling behind generally will.

    If you calculate your estimated monthly payment using the formula above and it is something you are confident you can do each month, it is a good option. If you are concerned you may not be able to come up with that amount each and every month for 4 to 5 years, starting the plan now only to fall out of it 12, 18, 24 months from now if you miss a payment (and lose the benefits of the plan) will waste time and resources.

    Have you looked into how bankruptcy may benefit you? Speaking with a local bankruptcy attorney (or 2) will help you understand whats involved in the process and how it can bring you the relief you need. If you can qualify to discharge your unsecured debts in a chapter 7, this may allow you the breathing room to keep up with the 2nd.

    If you learn something when consulting with a bankruptcy attorney that gives you pause about filing then look to see how settling the accounts for less than the balance may work for you. If you want to see a rough estimate of what amount of money and time may be needed to succeed in a debt settlement plan, check out the debt relief calculator on this site linked here: https://getoutofdebt.org//resource/the-amazing-how-to-get-out-of-debt-calculator

    Enter each of your accounts in the calculator starting with the field provided and click “add”. A new set up blank account fields will appear below the one you completed. Fill that in with a second account. Click add for each additional account then click calculate. Look at the summary to get a good feel for the amount of money and time that will be required to complete settlements with your creditors. The summary also calculates the cost and time lines for a debt management plan as well as a debt roll up strategy.

    A good cost estimate for 3 main debt relief options is outline in the following article on this site: https://getoutofdebt.org//33105/which-is-cheaper-credit-counseling-debt-settlement-or-bankruptcy

    If you have additional questions or concerns after you review your options please post a comment reply.


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