This topic contains 6 replies, has 4 voices, and was last updated by Anonymous 7 years, 10 months ago.
- May 5, 2011 at 6:58 am #203515
Here is the situation… I currently have a garnishment on my wages, my checking account was just drained from another collector and my mortgage is about to have a lien on it.
I know I should have done something before it got this bad but it is now too late for that. What is the best course of action at this point?
- May 6, 2011 at 3:34 am #259370
Make an appointment with a bankruptcy attorney.
Before you can file bankruptcy, you are required to receive a mandatory credit counseling session. If you are eligible for a debt management plan, they must tell you this at the mandatory credit counseling session.
So by contacting a bankruptcy attorney you will receive a full review of all your options from experienced professionals.
- May 6, 2011 at 12:55 pm #261220
I, personally, think that debt settlement or a debt consolidation loan is not a great idea. If you have an income, this plan will work for you. Just follow the steps.
Please do not consolidate or use a debt reduction company . It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. Student loans are the only debt that can garnish your wages for non payment without taking you to court first. Just list them out on a piece of paper or a spreadsheet and follow the plan. If you work the plan, the plan will work for you.
A. Have a garage sale and sell anything that you no longer need or want.
B.Get a temporary part time job, if you have one, get another.
Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an “emergency fund” category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don’t even have to worry about it. You must cut your spending and live on less than you make.
2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.
3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:
To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment
Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment
Debt #1: paid off
Debt #2: paid off
Debt #3:Minimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.
That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.
4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.
5a. When you have your emergency fund in place, add a category for “fun” to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.
5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.
5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.
You can do it and it isn’t as hard as you think. Just follow the plan.
- May 16, 2011 at 5:34 am #427985
- May 16, 2011 at 6:22 am #427986
The lenders always… ALWAYS try to take as much money from you up-front as they can.
As you may have heard, “This is an attempt to collect a debt. Any information obtained will be used for that purpose.”
Now is the time to re-do BOTH loans.
There are a number of ways that we can re-negotiate their offer, but it’s not enough to just tell them, “You have to do better than that.”
Without looking at your file, it’s hard to figure out what needs to be changed in order to get your result changed.
Take a look at this case study:
I’m not a big believer in giving the mortgage company everything but the lint in your pockets just to try to get them to cooperate.
The latest stats tell us that about half of the people who are “allowed” to keep their homes end up losing them anyway.
It’s “workouts” like these that are a primary reason why, IMO.
You’re smart to be worried about a proposal like this.
Get in touch with me if you’d like me to take a look at your situation.
- May 16, 2011 at 7:08 am #427987
There are actually companies that will work with you to buy your mortgage away from your mortgage company and avoid your foreclosure. Try looking into it at . Good luck!
- May 16, 2011 at 7:49 am #427988
Try to brows this resource. I am not sure thou about their credibility. Best of luck to you.
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