I was in your situation last year and now I am debt free! I called all those get out of debt now, i even went to a bankrupsy lawyer and paid the retainer fee $1800. I was in the hole $56,000 and now ZERO!!
Well I did it myself I didnt need anyone to do the work, which was easy. This is what you have to do
Step one: Get your credit report!!
I go to transunion.com they are the actually credit bureau.
Step two: Write down a list of all your debt, interest rates, what you pay per month.
Here is where it gets a little tricky....
I dont know what your debt looks like but here is an example.
A credit card with a balance of 6,000 and a minimum payment of $350/mth
Did you know that if you stop paying on a credit card that they will settle your account in 6 mths of NO PAYMENTS! Now this is very important, you can not pay them one cent or it will not work. You just have to cry the blues to them when they call. Tell them that you cant make any payments even if they try to work out a payment plan that sounds good DONT DO IT!!
Now when they settle they will want payment in full so save save save your money. Here is how...
With my example above with a debt of 6,000 and 350/mth. Instead of mailing that to the company to make a minimum payment hold onto it **DONT SPEND IT ** Now in six months you will have $2,100 cash to settle your debt. You will have to come up with a story like you are able to borrow money from your sister and this is all she has. Dont give them an amount let them tell you.
You can most likely settle with them for $1500-2,400. If you have any money left over save it for the next card. Most companies will start off with settling at 50-60 cents on the dollar. You can get them down as low as 40- 25% (that is what i did)
Now just remember this will effect your credit score. (It isnt as bad as a bankrupsy) Your report will read "debt settled for lesser amount". It will affect if you are trying to buy a house for a few years.
If you have several cards you have to see how much a month you can save for each one. Try to get rid of the larger ones first then keep going. Make sure that you also get a statement from them that they are willing to settle for X amount before you paythem. I had them fax it to me so I didnt have to wait for the mail.
Good luck Hope this helps you.
I am debt free, only one credit card open but with a zero balance. We are planning a disney trip to celebrate! Which will be paid with from saving cash not credit.
Now for those of you thinking hmmm I could go on a shopping spree and then do this, i dont advise it. My business flopped and this was mostly business debt, and some personal. It wasnt like I was planning to do this, because that is just wrong.
I was in your situation last year and now I am debt free! I called all those get out of debt now, i even went to a bankrupsy lawyer and paid the retainer fee $1800. I was in the hole $56,000 and now ZERO!!
Well I did it myself I didnt need anyone to do the work, which was easy. This is what you have to do
Step one: Get your credit report!!
I go to transunion.com they are the actually credit bureau.
Step two: Write down a list of all your debt, interest rates, what you pay per month.
Here is where it gets a little tricky....
I dont know what your debt looks like but here is an example.
A credit card with a balance of 6,000 and a minimum payment of $350/mth
Did you know that if you stop paying on a credit card that they will settle your account in 6 mths of NO PAYMENTS! Now this is very important, you can not pay them one cent or it will not work. You just have to cry the blues to them when they call. Tell them that you cant make any payments even if they try to work out a payment plan that sounds good DONT DO IT!!
Now when they settle they will want payment in full so save save save your money. Here is how...
With my example above with a debt of 6,000 and 350/mth. Instead of mailing that to the company to make a minimum payment hold onto it **DONT SPEND IT ** Now in six months you will have $2,100 cash to settle your debt. You will have to come up with a story like you are able to borrow money from your sister and this is all she has. Dont give them an amount let them tell you.
You can most likely settle with them for $1500-2,400. If you have any money left over save it for the next card. Most companies will start off with settling at 50-60 cents on the dollar. You can get them down as low as 40- 25% (that is what i did)
Now just remember this will effect your credit score. (It isnt as bad as a bankrupsy) Your report will read "debt settled for lesser amount". It will affect if you are trying to buy a house for a few years.
If you have several cards you have to see how much a month you can save for each one. Try to get rid of the larger ones first then keep going. Make sure that you also get a statement from them that they are willing to settle for X amount before you paythem. I had them fax it to me so I didnt have to wait for the mail.
Good luck Hope this helps you.
I am debt free, only one credit card open but with a zero balance. We are planning a disney trip to celebrate! Which will be paid with from saving cash not credit.
Now for those of you thinking hmmm I could go on a shopping spree and then do this, i dont advise it. My business flopped and this was mostly business debt, and some personal. It wasnt like I was planning to do this, because that is just wrong.
