I Invested in Real Estate Using Credit Card Convenience Checks. – Tina

“Dear Steve,

I borrowed about $40,000 from 4 credit card companies after they kept sending me convenient checks with teaser rates. I had learned from a real estate seminar that this is the way to invest in real estate using other people’s money. I also used some of the money to invest in the stock market.

Unfortunately, given the financial meltdown, my property was foreclosed upon and I also practically lost everything in some bad stock market investments. I’m retired on a fixed income with hardly any extra cash left over after living expenses. I also have a medical problem.

I’m now 4 months late (stopped payment in March 09). I just took out a reverse mortgage and plan to use the little cash I’m going to get to pay off the creditors. I want to make one payment to each creditor to settle the debt. Bankruptcy is not an option for me.

What is the best way for me to approach the creditor to settle the debt in a way that I can afford? What is the lowest percentage I can ask for – 20%, 30% etc? When does the credit card company sell this debt to an outside agency? Is it better to settle with an outside collection agency?

Any help you can provide me would be greatly appreciated.


Dear Tina,

Before I give you any additional advice, why is bankruptcy not an option for you? Do not make any promises to pay or enter any settlement agreements until we can get to the bottom of this.


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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