I am down to may last creditor and I am also down to the last money I have. I have approximately $4,000 that was given to me to use for debt settlement. My last creditor wants $4,100 right now to settle my final debt. This is my dilemnia; I only have $4,000 right now, my clutch is going in my remaining car (my last blog explains second car is probably being totalled), my tenant gave notice she is moving out of my second home so I need to give her back $1,600 for her last months rent and deposit, I need to purchase a wood pellet stove before winter ($2,000) or I'll never be able to afford fuel for the winter and I need to move. My house may not sell and if it doesn't, I have to find a tenant before winter and I won't be able to rent the house for what I owe monthly, I'll be short about $150 a month; better than a full mortgage payment and paying to heat an empty house.
So my last creditor has offered me two options to choose from; first would be 0% financing for 5 years on my balance. This means the nightmare is over, one small payment until it is paid in full (giving a better credit rating) and the ability to use my reserves for necessary car repairs and the wood pellet stove. The second option is debt settlement of $4,100 (55%) which will clean out my cash reserves leaving no emergency money and will pay off my final credit card debt.
I have additional funds coming in the form of an insurance check on my totalled car, which I wanted to use to pay off my remaining vehicle. I may have to trade my remaining vehicle next year as it is 9 years old and is very expensive to repair and it seems to be having more problems now, so next year I will be able to trade the car and not be tipped on my equity or I could use the insurance money to fix the clutch and buy the wood pellet stove and do the debt settement.
I'm leaning toward the 0% financing for 5 years and I'll pay more monthly to pay it off early. This way I will have money in the bank and be able to take care of expenses coming. It will leave me with a more positive credit rating on this card, but I will still owe $7,500 in credit card debt; I had wanted to get rid of all credit card debt, but I guess this is better than having the possibility of not being able to fix my car or heat my home this winter. It will take me a few more years to be credit card free, but the nightmare will be over and my credit will start recovering.
What would you do?
What to do Payment Plan/Debt Settlement?
July 1st, 2008 at 09:55 am
July 1st, 2008 at 11:23 am 1214911382
My question would be, how much do you owe on the 9 yr old car and what is your monthly payment like?
July 1st, 2008 at 11:41 am 1214912508
July 1st, 2008 at 02:22 pm 1214922158
July 1st, 2008 at 03:13 pm 1214925193
July 1st, 2008 at 05:30 pm 1214933405
The other option is good, but you said the $ was for the debt settlement so dont second guess yourself so close to the finish line. If you get this final debt gone I am sure you would do whatever it took to stay debt free and find a way to pay for upcoming expenses.
Good Luck!!
July 1st, 2008 at 10:43 pm 1214952222
July 2nd, 2008 at 12:21 am 1214958078
July 2nd, 2008 at 01:39 am 1214962774
July 2nd, 2008 at 09:57 am 1214992640
I decided that I needed what money I had left to fix my car and put in a wood pellet stove before winter and get 3 ton of pellets. Maybe I am panicking but I don't know how most Americans are going to afford heating costs this winter; myself being one of them. So I am planning ahead because I have two houses, no tenant and nothing is selling.
I talked to Sears yesterday and they agreed to a $1350 down payment to bring my credit current and $125 a month at 0% financing until paid in full. So my remaining balance is approximately $6,100. I will definately try to pay this off as soon as possible. I still am selling some personal things; having another moving sale and trying to find more work.
July 2nd, 2008 at 01:52 pm 1215006734
Good luck.
July 14th, 2008 at 11:25 pm 1216077952