I need debt help

[Aluka]

I wanted to get a little advice as to how to approach and get rid of the debt that has accumulated over the last couple of years. First off, me and DH have no CC debt. Zero. Which has made research kind of difficult has most things I read about almost exclusively address CC debt. Our debt spans through many channels however, unpaid utility companies, tv/internet/cell providers, medical bills, overdrawn bank accounts that almost all have been sent to a collection agency. It's not that we ever wanted to NOT pay our bills and realize in hide sight our decisions were not beneficial,but life as just not been very kind to us and we basically would be in the position of eating and a roof over our head or paying these. We have finally entered a chapter in our life where things seem to be brighter, a good job, an affordable house and monthly bills, along with a new baby boy. We have well acknowledged where we have gone wrong and how to change it and have been on that road, which is why we are formally looking into paying down our debts. We have visited the idea of debt consolidation loans, but through some research I am a little leery. On the other hand we are worried that if we pay one debt the agencies will hound us until we chuck the phone out the window. I am just not sure how to go about it or even how to figure out WHO to pay .. Suggestions?

Thanks

[hamchan]

Look up your credit report. Make a list of all the debts you owe and the dates. Start with any debts that haven't gone into collections yet. Pay the most recent ones first. Next move on to the ones in collections. Call and tell them you would like to have this paid in full but you have many bills to deal with and a limited amount of money to pay them. Offer them a settlement in order for it to be paid in full. Start low, like 20-25%. They paid pennies on the dollar for that debt. Usually you can get them to take 50% or possibly even less. But be prepared to pay the agreed upon amount right then. I have never had issues just doing this over the phone but I have heard you should get it in writing before paying anything. You will have to claim the difference on your income taxes, but you still come out ahead.

If it's really a lot of money, your credit is trashed, and your income isn't particularly high then bankruptcy might be a better option. I have done it under similar circumstances and do not regret it.

[disneysteve]

First thing you need to do is list all of your debts with the balance and interest rates and whether or not you are current on each.

Then, list your income and your monthly expenses other than the debt payments.

Do you have any savings other than retirement accounts?

Once we see the numbers, we can help walk you through how best to repay them.

[hamchan]

Forgot to say that you can look at your credit reports free once per year at annualcreditreport.com. It's a good place to start in figuring out how much you owe and to whom.

[bjl584]

I agree that we need more info. How much debt do you have? How past due is it? What is your current income? How much do you have saved?