“Dear Steve,
I was trying to modify and consolidate my Discover Card at the same time. The company I hired scammed me. I paid them over $4,000. Now I am being sued by Discover. I called the collection agency to work out payment agreement. They want an unreasonable amount down payment of $5000 and $400 a month. I am already behind 2 months with my mortgage. Oh I was unemployed for 2 years that’s how I ended up in this mess.
I was issued a summons and I answered without any attorney hoping the court will give me a better payment deal. Did I do the right thing. There is a debt relief company behind me. But I am scared because of what happened to during the modification.
Joan”
Dear Joan,
I think the Discover issue is but the tip of the iceberg. If you simply focus on that it does not remedy the balance of your underlying financial issue.
It seems you might be employed now, is that correct? Do you have a plan for getting current on the house or are you just so far behind you can’t catch up? Do you want to keep the house?
If you could post some additional information for me in the comments I can give you a clearer path to follow. Until then let’s start with the basics.
I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.
Then use the free How to Get Out of Debt Calculator to review your options.
Please post your responses and follow-up messages to me on this in the comments section below.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
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