Does anyone have experience

Discussion in 'The Watercooler' started by klmno, Jan 29, 2010.

  1. klmno

    klmno Active Member

    with loan modifications for mortgages and/or HELOCs that I could PM and ask a general type question?

    Also, I called the CC company. This guy told me they could reduce my rate and keep this from being written off as bad debt. He told me what they would reduce it to and then it would be paid off in five years. (Let's call that amount "A".) Now, according to this guy who answers finacial questions on CNN, the amount should be negotiable based on what a person can pay, because otherwise the CC company can end up with nothing but this isn't what this CC company is saying. Does anyone know anything about how to get them to settle for even less because I won't be able to even afford amount A.

    And as far as bankruptcy, if I file will there be some amount that I have to pay monthly to repay the CC company that is determined by someone else?

    My concern here is that I have always kept my total debt payments less per month than what the banks said was a maximum (that 30% of income or whatever) because I know it doesn't leave me enough to be a single parent on otherwise. I don't want to commit to (or back myself in a corner) having 40% of my pay going to monthly debts and not having enough left for living expenses.
  2. DammitJanet

    DammitJanet Well-Known Member Staff Member

    K...that has always been my ultimate fear with being in I hate debt. It scares me to death. Always terrified me that we couldnt pay the bills on one weeks paycheck. I mean the major fixed ones. My son doesnt seem to have inherited that fear from me. Most likely because he didnt pay attention!

    I dont know about those debt places and what their amounts are. I know someone who did do one of those things where they put all their CC debt and secured and unsecured debt into one of those consolidated loans. I think they negotiate with the lenders for you to get better interest rates. Well, they supposedly got out from under like 50K in CC debt in 5 years. I think. I dont know if they really stuck with it or not. I really doubt it. I know they had to make a payment each month and couldnt get anymore CC debt. Dont think they could get anymore any kind of debt to be honest.

    I also knew someone who went through the type of bankruptcy where you pay back money but it was so long ago it probably isnt relevant anymore and I have no idea how much she paid each month but it was taken directly out of her paycheck. We were paid monthly and I know she complained.
  3. klmno

    klmno Active Member

    Well, that percentage method is a stupid approach, in my humble opinion. A parent who makes $18,000/year, for instance, is in a real mess if 25-30% of their income is going to pay fixed debts. But a person who makes $125,000/year can easily pay that percentage in debt and still afford to live.