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This is the way it works in California, your states laws may vary.
It depends on the amount owed and your debt to income ratio. There are debt councilors available in every state, most consultations are free or sliding scale. They can tell you what the collectors are allowed to take and even advise you if you should do a debt consolidation, or for a fee have the debt adjusted and a percentage written off by the creditor. They will handle this for you, you will pay them a small fee every month and the amount needed to pay the creditors. This does effect your credit, but usually not as badly as not paying them at all, if that is how you are now situated, because the amount is negotiated. The councilor will be able to advise you what amounts each creditor is usually willing to deduct.
If you go this route you must pay the agreed amount every month or the creditor will take you to court and he will sue for the full amount plus interest and any fees including those from going to court.
Another option is to call the creditors, explain your situation and work out an informal agreement. Possibly they can stop tacking on late fees or high interest every month, as long as you send the agreed amount by a certain day. If for any reason the agreed amount can't be paid by the date due, call and let them know. The creditors are human too, they understand the situation millions of people are in right now and have been for months.
Any amount you can send is better than sending none, usually.
If whatever amount you can send is not enough to start chipping away at the principle of the loan, so the balance isn't higher and higher every month, you may need to file bankruptcy. This too will effect your credit in a negative way and it remains on your credit for several years. But if there is just no other way, sometimes it is what we have to do. The credit adviser will also advise you if this is your best option.
You have the right not to be harassed at home and work, you have the right to be talked to in a respectful manner and never verbally attacked. Anytime you call a creditor, get the name of the person who you are speaking to, first! If you find one to be particularly helpful find out if you can call this person directly in the future.
Good luck I hope things get better for you.
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Where could one obtain helpful debt settlement advice?
You can obtain helpful debt settlement advice by seeking out the professional opinion from an attorney. They could work with collectors to help settle what you owe and lump it into one monthly payment. Many collection companies are wanting payment so they are more than likely willing to settle for a fraction of what you owe.
Can a bankrupt company demand payment of debt?
Only if they cannot provide services to you that were paid for.
Is it better to finance an auto purchase with a small down payment and high monthly payments or high down payment and small monthly payments?
It is better to finance an auto purchase with a high down-payment and a low monthly payment, because it is less likely for you to fall behind on your payments and acquire debt.
What is the maximum percentage of a borrower's income that can be used to make the monthly mortgage payment called?
Debt to income ratio
How do i get out debt?
The simple answer is - discipline ! Work within a budget. Contact creditors and arrange a lower monthly payment. It might take some time - but eventually you can be debt-free.
Can a debt collector demand payment verbaly?
Debt collectors are permitted to make verbal requests for payments and do so quite often by telephone usually in the middle of family dinner.
Can collectors make you pay?
No. Debt collectors contracted by the owner of the debt to contact the debtor for payment. In most cases they will say anything and harass you into make a payment. Depending on how their payroll works- If you do make a payment, they get a comission on the payment you make.
Where could one obtain helpful debt settlement advice?
You can obtain helpful debt settlement advice by seeking out the professional opinion from an attorney. They could work with collectors to help settle what you owe and lump it into one monthly payment. Many collection companies are wanting payment so they are more than likely willing to settle for a fraction of what you owe.
Can a bankrupt company demand payment of debt?
Only if they cannot provide services to you that were paid for.
Is it better to finance an auto purchase with a small down payment and high monthly payments or high down payment and small monthly payments?
It is better to finance an auto purchase with a high down-payment and a low monthly payment, because it is less likely for you to fall behind on your payments and acquire debt.
Can you be held liable for a deceased credit card debt if you made the minimum monthly payment for them and were not a joint holder?
No, making a payment(s) on someone else's debt does not legally obligate the payer to continue to pay or to assume the debt as his or her own.
What type of services does 800 Credit Card Dept offer?
800 Credit Card Debt helps you consolidate all of your credit card debt into one monthly payment. They do this by contacting your credit card debt companies and negotiating a payment for you.
What are the best methods in dealing with debt collectors?
There are several approved methods for dealing with debt collectors. One method is to set up a payment schedule with the collections agency. Another is to hang up and change your name and phone number.
Do you have to pay the entire balance of what is owed to debt collectors?
Debt collectors are under no obligation to take a lesser amount than what you originally owe. Most will agree to and acceptable payment plan or offer a settlement if the original creditor allows it.
How do you calcute debit to ratio?
Your debt-to-income ratio compares the amount of your debt (excluding your mortgage or rent payment) to your income. To figure this out it is easiest to use monthly figures. Take you monthly bill amount and divide it by your monthly take home pay this will give you a decimal number which is your percentage of debt to income.
What is the maximum percentage of a borrower's income that can be used to make the monthly mortgage payment called?
Debt to income ratio
Can debt collectors trespass?
Debt collectors are not allowed to enter your property without permission, so if they do so, they would be violating trespassing laws. However, they can visit your property to attempt to collect a debt as long as they do not enter your home without permission.
