Credit card debt not paid on in a year, repayment plan options?
July 23, 2014 10:21 AM Subscribe
Large CC debt ignored for nearly a year, going to call all collectors tomorrow to try to get a payment plan. Tips?
posted by anonymous to Work & Money (10 answers total) 7 users marked this as a favorite
It's a long story, but my I accumulated about $28k in credit card debt over four cards. We had a serious issue with a new house we bought that put about $20k of it on there. I was also starting a new business that is still going well and is beginning to finally turn the corner (two years in). My wife and I both work for the business. Anyway, I stopped paying on the CCs about a year ago in August. At first it was just a "gonna pay them late" thing as we have been pretty short on money, then it stretched onward and finally this past month I've snapped out of my denial and thought to myself "what have I done!?" I always had good credit till I ruined it with this. I know how stupid this is and I've learned a lot about facing challenges head on from coming to terms with this one.
Anyway, these cc debts have long ago gone to collectors. They called a ton for several months. Some calls still come in. I had ignored it all.
Having snapped out of this foolishness, I am prepared to call them all tomorrow to get back on track. We have not received any court orders or anything like that yet. We do not have the cash to just settle and pay the debts off at the moment.
We could however probably pay up to several hundred dollars a month toward them, collectively.
Does it seem realistic to expect the debt collectors to agree to a payment plan at this late stage? We would stick to it as we've really begun to take this seriously.
In the future, say, in a year or so, we could be able to settle and clear these away.
What should I do when I call? My main objective is to get into payments and divert any oncoming court actions if possible. I don't want to pay more than I have to per month but I do want to satisfy the collectors to the point that they agree to a plan.
Any tips as I head into this?