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Home > Settlement & Afraid to Talk About It

Settlement & Afraid to Talk About It

February 7th, 2008 at 10:49 am

My largest debt is with Bank of America, it is at $59,900 right now with the interest and late fees. I had a dream on Tuesday night that they were suing me for the balance. I woke up at 2:00 am and couldn't go back to sleep.

For those who been following me, you know I have that "Privacy Corp" ID machine that let's my calls go to the machine and I don't hear it ring. I thought I had all the collectors so far, programmed in. So my mother is traveling and I was concerned about her and the phone rang and I assumed it was her, well it was BOA. I had not planned to talk to them again until March because I'm not yet 90 days.

So I told them my situation, which has not changed and told them I'm looking to settle my debt. The nice gentleman I spoke with offered me a settlement of $21,000, I asked for $18,000, so he told me he would go see his manager and call me back. He called me back with bad news, they wanted $27,000, which I don't have available to me right now and it would throw off my settlement plan making me short to settle all my debts. So he hooked me up with the Manager, she thought I was threatenig her with a bankruptcy which I told her I was not, but .... that didn't go well. She then told me that if I did not settle, she was sending me to arbitration, that means legal and they make the decision to sue me or not to sue and she told me they would sue me and garnish my wages and put a lien against my house. So then she and I compromised and we finally settled at $23,000. A little more than I have right now, but she let me spread it over 4 months so my tax refund will be here and I'll have enough. That is a 38% settlement and I'll take it with the threat of being sued over me. My account was large and it is usually the large ones that get sued.

I didn't realize how much this has been bothering me, I knew it was upsetting and I thought I was dealing with it okay, but after I hung up I literally cried for an hour and then I broke down a few more times during the day. I was mentally wiped out and couldn't do much the rest of the day. I am still in shock that they settled with me and I'm so relieved that it has finally started and I was able to take care of my biggest account.

The bad news is I have $74,500 still in credit card debt to settle with four more creditors. I owe Discover $25,000 and they are they are about 70 days deliquent now and will probably be willing to talk to me in another month.
I checked out my 401k plan and I can now borrow more money than they told me I could, because I've lost so much money lately, I decided to put in a loan request so I can start planning how to finish this up.

There is a God and I may survive this (knock on wood).

9 Responses to “Settlement & Afraid to Talk About It”

  1. reflectionite Says:
    1202381869

    congratulations on settling that one.
    i am young and have never been in a position like yours, but i have to tell you your way of dealing with it makes me smile, halfway across the globe! not, of course, your situation, but i mean that even though it is getting you down, you are determined to not take the easy way out and that really struck me. so my best wishes to you and i hope that you can make it through these hard times. i will continue to read more and hope you keep writing. sharing helps lighten the load and you will realise there are people out there that care and really do hope you make it through!

  2. merch Says:
    1202392564

    About 45% of your debt taken care of. Not bad. Hopefully this will give you some peace.

    Good luck!!! Stay focused and no new debt Smile

  3. campfrugal Says:
    1202393382

    Yes, there is a God and "With God, All Things Are Possible". I am thinking of you and when you do have that debt paid off, you are going to feel great; and just in time for summer.

  4. miclason Says:
    1202399640

    ((hugs)) I remember when I was getting all those creditor calls and, my throat would close whenever I heard a phone ring...I'm not out of the hole just yet, but, at least I no longer get the calls, and I don't dread the account statements anymore either (although they are fairly large compared to my level of income, at least I know I'll be able to make minimum payments every month! -- I know that'll never get me out of debt, but, for the time being, it IS peace of mind....plus, I do have $$$ coming to me soon that should put me in a place where paying at least 2x the minimum payment will be easy!) ...God is indeed great!

  5. creditcardfree Says:
    1202409182

    Get that settlement in writing from them before you send any money. Otherwise they may deny ever making an agreement with you.

  6. Koppur Says:
    1202420795

    I did debt settlement last year. Be careful: when I paid off my CCs that way, the amount I paid off had to go onto my taxes as INCOME and I got taxed on it again, even though I got taxed on it when it really was income...

  7. lost in debt Says:
    1202434803

    I will be able to file a 982 for the first $47,000 in savings, after that it will be taxed. I usually get a refund so I will continue to save for the tax implications.

  8. girlndebt Says:
    1202518403

    This is wonderful news! You are on your way.

  9. jeffg153 Says:
    1221078615

    I read your blog and it is very inspirational. You should be extremely proud of yourself! I can hardly wait
    for the day I can say I am free of all my unsecured debt.
    I am in the process of settling a 35G balance with BOA.
    I recently signed up for Debt Settlement USA. I paid the
    $29 registration fee and my first withdrawl for $635 was
    scheduled for 9-17. My account was 1 month del. Last
    Friday I got a call from BOA, advising that my account
    was past due. I was instructed by DSUSA not to speak with anyone, simply refer them to their customer service.
    I told the BOA representative that I had joined the
    settlement company and he immediately said that BOA refused work with any consolidation companies and he was
    willing to make me an offer. He offered 20 G, 57 % of the debt. I spoke to family members and with their help and the savings I have been able to accumulate, I accepted the offer. I set up my first payment of $500 on 9-8 (Already debited) and second payment of $2500 on September 30. The issue I have is that BOA is now rescinding their offer, stating that it has to go through
    approval by management. I am very nervous because I have already cancelled my activation in the settlement program and paid $500. I read that you said that CC's will not
    negotiate with anyone not 120 days behind. I am praying that the manager will accept my offer!!

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