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When to settle with debt collection

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    I agree with Julie. Sell whatever you bought from Best Buy. Sell everything. Have a yard sale. Can you pick up a part time job?


      Sadly we have already done all this. Me and wife's working hours does not allow for second job and we have already done the garage sale and sold everything we could. Does this mean you think they will not go down from 60%?


        If you want my honest opinion, when I read through your numbers I just don't get that "OMG how will they ever pay that off?" feeling that so many stories on financial sites invoke. I'm not sure if that will make you feel better or worse.

        Basically you seem to be dealing with around $15k in credit card debt and right now you can pay off almost $5000 of it - even if you did take that from a 401k which is a big OUCH. But it is done, and that leaves $10,000 give or take, which really is not a run to the bankruptcy lawyer amount for a dual income family. My gut says they aren't negotiating with you the way you'd like because they feel like they can get more money from you. I've certainly seen plenty of stories where people have gotten really intense and paid off much more debt than this, in well under 3 to 5 years.

        JoeP is correct, a good portion of your balance is likely late fees, penalty, interest etc etc etc and they are going to come down some and still turn a nice profit from you if you poke at them a bit and make a fuss. Whether or not they're going to come down as much as you want I can't say. They might, or they might be willing to take their chances.

        I wish you well though, I do understand the rock around your neck weighing you down feeling these issues can make you have, especially once you start worrying about building a future for two babies in addition.


          Well the hard part is that we are also paying back around $10,000 to family members. For the past year or so we have really been struggling. At the end of each month in order to keep up with everything we had to borrow family money. And it is at a point where the family is done and wants there money back ASAP. We are at a point where our income cannot increase anymore and our bills cannot go down anymore. So we simply don't have enough money to pay creddit card bills anymore and that is not going to change anytime soon. We have come up with a budget where we can pay all bills and have enough to provide for my family but thats it. We will be living like this for a while but the only way it will work is if I cannot I settle these credit cards.


            What kind of cars do you drive? How much are they worth versus how much do you owe on them? Is it possible to sell one or both and downgrade to something cheaper?

            I think you should seriously consider selling your house and renting as well. I don't think that you can afford it. You had to borrow money to buy it in the first place. I think between the mortgage, the utilities, the taxes, and the maintenance, you are drowning in it. It would go a long way to wipe the slate clean and get a fresh start.


              I also think you're really selling yourself short in regards to your income potential. I realize that working and working with two small kids in the house is quite difficult, but I think you need to get creative with your skills. Your wife too.

              What do you teach? Could you put together some formal lesson plans or curriculum ideas and sell them on one of websites? Or maybe do an eBook with some ideas Home Schoolers could use and self-publih it at Amazon? Have you looked at or some sort of similar site? Do you have some proofreading or other skills that you could offer up for hire? Do you have a strong interest in a particular hobby or skill that you could turn into a blog?

              Most of these sorts of ideas are only going to bring in small amounts every month at first. But if you can continue to grow the income scheme, it is just going to help you get your family paid off quicker.


                my salary is not that great and neither is my wife


                  Good Advice

                  Originally posted by bjl584 View Post
                  My next move with the creditors would be to negotiate a settlement. They bought your debt for 30 cents on the dollar if that. Low ball an offer out there. Threaten bankruptcy if they don't take it.
                  This is exactly what you should do. They are at risk to lose everything and will come down further.