Your retirement funds are safe

Your retirement funds are safe(401K)no one can garnish them even though they are an “asset”. Best bet is to deal with the credit card companies directly and get those interest rates below 10%. Suspend the use of your cards for any non-vital costs. They want to get paid too so be persistent about their pay down programs.

Here is what I accomplished with MBNA:

  • On a $32,000 debt 550.00/month at 6years at 3%. I owe them 19000 now.
  • With Discover Card On a 13,000 debt I owe them 8000 now. $394.00/month 4 years at 10%
  • With Citi Card On a $8000.00 debt $300/month at 10% 3 years. They also have a half/pay program. when I owed them $3000 I complained that the paydown rate wasn’t moving fast enough.

They offered the following:

Come up with $600.00 and we will match it. That day I got $3000 down to $1800. I went after this debt with a vengeance and have it down to $700.00 as we speak. With JC Penney it was 3000. I managed to pay this down at 300/month NO INTEREST in ten months.

In all cases I closed the cards and only work on buying what I have the money for. I intend to be debt free in 2 years. Meanwhile I have housing expenses of $3000.00. I work a tremendous amount of extra jobs to make ends meet but I am driven to succeed at this program.

If I ever have a credit card again, I would never allow courtesy checks nor have a limit greater than $5000.00 and this requirement would be in writing to that company. Be hardnosed with credit card companies. Don’t take no for an answer. it took me a year to get Discover Card reigned in to my terms.

I kept hanging up on them and I stopped paying them at one point till they dealt fairly with me. For example: When they threaten penalties and late fees tell them that needs to go away if they are going to get paid. Interest rate 18%? No way.

They will call back with a better deal just be patient. Don’t divulge a bank account number to a credit card company you suspect will seize your account keep safe money safe in a new bank. Pay from a pay account you intend to divulge to them that checks or electronic transfers will come from and only have in the account what you need to pay them.

You can be debt free in 2 years if you focus on not using credit anymore. I was almost 60000 in the hole 2 years ago and now its under half that. The tunnel finally has some light in it. When I destroy the Citicard account I’ll focus on the next smallest debt until it too is gone


Debt settlement – urgent question

I have tried working with my credit cards to do this. They all say no way and then get quite ugly. Citicard being the worse. I have offered only 20 percent to the lowest 4. It’s not much but its all I have. Now I thinking maybe I can get them to work some other arrangement. I’d like to offer to pay them the original amount owed (less late fees and over the limit fees, plus higher interest). Am I nuts to even try this? If I could get them to agree to that and then give me a set amount of time to do this in, I just might be able to get my head above water. Anyone able to do this? Any other suggestions?

Okay everybody…Ive been following this group for quite awhile, And now I think Im to the point Ive decided to try debt settlement with all of my credit cards, Ive talked with a Credit Counselor, (Green Path?) and was not impressed with the help they had to offer, and what they wanted to charge me. Ive paying basically minumum amounts on all of them (approx $34,000 debt to following cards: Cap1, HSBC, Chase, 5th 3rd, Bank of America) Hosehold income is approx $62,000, I have a mortgage that MAY just break even if sold (no equity) Both my husband and I have older cars that are paid for, and require misc. parts every now and then, My home is very modest, and Im raising 4 kids with my husband, we both work full time, and have “hobbies” that bring in small amounts of money, but nothing significant (not for lack of trying though!) I hate to be judged, but “yes” we were living beyond our means, not saving, and always counting on pay increases that stopped years ago. I could go into more into detail about how we ended up with so much debt, but I guess it doesnt matter much at this point.

Credit companies are already sending us notices that our available balance is being lowered, and the ones with higher interest rates wont lower them, our credit score is going down if I continue on this path, so I am thinking debt settltment may be something I should do. (know debt settlement hurts credit too)

The idea of just stopping the payments freaks me right out, I take a lot of pride in being able to pay my bills, but the gig is up. I have spoke with the companies who handle the settlments for you, but they are charging atleast 2,000.00 crazy. BUT I did gain knowlege talking with them, so I pretty sure I can handle it, I DO worry they may have some “trick” or “technique” that I may not know of, that could screw me up, I dunno.

I worry about that, but I mostly worry about worst case senerio, which I have no idea what it is????? this is unsecured debt Im trying to settle…..so they harass me by phone???? take me to court? garnish wages???? from what Im hearring, as long as I show up to court, the judge will help figure out something I can afford, once again, I dunno! I have no assets…other than a 401K, worth maybe 20,000???? (havent checked lately!) could they touch this??? Should I try to contact all my CC before I stop paying, just so I can say “see…I tried to work with you first, you didnt want to” would that even matter????? Im hoping because of the climate now, the CC will quicker want to settle than the fear of getting nothing.

One more thing….My hours at work have been cut from 40, to 30, per week and it could contiue for sometime, that is mainly why Im finally deciding to do something about the debt….I so dread it……but Im finally stuck, and must do something, it really sucks.

So if anyone has advice, support, or answeres to questions I asked….please respond!!!!


Hello all, I’m new to the blog

I just stumbled upon this blog and have found it interesting with very good info, i belonged to another group, but with no activity or good info.

well, i of course am in debt to and feel like a failure. last year i was completely out of debt and it felt good, i remember being stress free and able to breath, but what makes us go right back out and do it again is beyond me.

My credit cards are all current, but Bank of America just raised my Apr and charging me a 37.89 finance charge, this is going to ruin me, i am not paying this, i refuse. i have talked with them and cannot get direct answers on where there getting 38.00 in finance charges on 16.99%.
i am unemployed at the moment but i am married and my hubby is retired with a not so good income.

38% is ridiculous.

My health insurance just went up 34% to over $500 a month. Even though it’s insurance other than credit card, I found I can make an appeal on this here in California.

It would be great if the more knowledgeable members could address what exactly usury is as that is what Rebecca’s rate sounds like to me.


Opinions on this offer please

I have been trying to figure out what to do with this debt. I have contacted a lot of different places. I just need to know if this sounds good or am I being snowed. Should I go about this differently?

Here is an email that I received… Can someone tell me their opinions??

Creditors are Chase.

Plan A

This quote is based on $17.500 in total debt. If all of your accounts were only at 18% and you were making minimum payments, it will take you approximately 22 years and you will pay at least $37,233.00 in interest and fees on top of the 17K that you owe already! Those figures assume timely payments; if you fall behind it gets much worse.

With our “Consolidation” program we will negotiate with your creditors to get your interest rates reduced; in some cases eliminated altogether. This will help get you out of debt in a short amount of time. This program will not have a negative effect on your credit because you are paying your debts back in full.

Go to http://www.myfico.com/CreditEducation/WhatsNotInYourScore.aspx. Click on “learn” and then on “what is not included” in credit score. Look for “credit counseling” which is (plan A) consolidation. Link will answer any questions concerning consolidation program and your credit scores.

Your monthly payment will be $399.00 and you will be totally debt free in 62 months or less. This represents the lowest amount that will be acceptable by each of your creditors to participate in a Debt Consolidation program. If you have additional funds available you can pay more and get out of debt even faster. Is $399.00 a payment that will be affordable for you on a monthly basis?

Plan B

We do have an alternative program that will get you a lower payment called a “Debt Settlement”. Let me explain the difference. In the Consolidation program, we take all of your unsecured debts and lump them into one payment. We negotiate with your creditors to get your interest rates reduced so that you can get out of debt in short period of time. If that is not affordable, you do have the option of “settling” the debts. That’s where we negotiate your overall balances, not your interest rates. We can usually reduce your total balance down to approximately 60% of the original amount.

Go get $1000 loan online from WeGot1000. During this time frame, your credit will not be optimal as you will not be paying the debts back in full. This is more or less an alternative to bankruptcy. You will continue to receive collection calls and letters. Your accounts will be settled one at a time while the others continue to fall behind. Once each account is paid off you will receive a statement back indicating that your account has been paid as agreed or that a settlement has been made. When you have paid off the last account your credit will begin to get back to where it needs to be. We would recommend paying extra whenever you have the funds available.

This program will lower your monthly payment down to $350.00 and that would lower your time frame down to 35 months. Is that a payment that would be more affordable for you?

There are allot of details about each program that we can discuss before you make a decision but I wanted to give you some numbers to think about today.


Reply to: increase in rate unexpected

Regarding my own situation, i spoke with someone at Citi who said the increase is because of the general problems in the credit markets, not a reflection on me. i have the option to opt out and keep the current rate, but the card will be cancelled upon its expiration date and all the money will be due by then. since i requested a new card, the expiration date is three years ahead, so this could be an option to freeze the current rate. if i don’t opt out, the rate goes to the higher rate (near 20%) by April. i noticed that they had already increased the yearly membership to $50 from $35, were charging for any lateness, and increased charges for cash advances. it would seem that maybe i should opt out, in case other cards start doing the same. it’s not going to help if all credit cards all of a sudden increase their rates by 6%.

I think that all of the credit cards are doing this, I dont personally have any CC, due to filing bankruptcy but my husband has received two letters from two different credit cards that has stated that his interest rate is going up due to the economy but he can call and tell them to keep it as. It is crazy that they are doing this most people do not even look at the small print that has this important info.

My Discover Card went from 11.5 to 14.99 according to Discover for the same reason. I just did a transfer from Discover to Citi to a 2.99 rate for a year. I plan to be finished with this debt by the end of this year. I had 5800 of debt on the card. It cost $176 to transfer it to the Citi Debt Card. So, why not opt out and close the card before three years are up like the day after they get the notice to opt out? It is a DA idea that debts to credit cards are bogusly bad…..and if you have an open card you will most certianly use it…why not commit to DA and stop using it by not just cutting it up but by closing the account entirely….it seems you are wanting to continue to debt and that just did not hit me as right as a DA member….even though I am myself not solvent more than a few days after a screw up with a bill and getting overdue notice in mail.

Hi Bill and all. Thanks, that is exactly what i intend to do. the good thing is that i had just asked for a new card because i had cut up my previous one and i needed a physical one to enter data in the internet, so as to change to receive bills in the mail. this extended the date of expiration, so now i can opt out, remain at the earlier rate and pay it off. i think i will pay it off sooner anyhow.


Request for advice: harassment & torture by indiabulls

I had taken personal loan from Indiabulls of Rs.25,601/- on 25/5 and repaid Rs.22600/- but just default in one of my EMI of Rs.1800/-, Indiabulls misused my blank security cheque by filling false amount of Rs.28,249/- and they also misused my blank signed loan agreement by filling false figures of 30 installments instead of 24 (Usurious rate of interest more than 60 % p/a.), denied the receipt of some amount debited from my bank.

Even though I tried to settle the dispute by offering reasonable amount pending principal amount and interest amount but to extract extra money from me Indiabulls filled bogus cheque return case in Patiala House Court, New Delhi. As it is tough to defend the false cheque return case traveling from Mumbai to Delhi, Indiabulls forcing me to pay Rs.32,499/- plus uncharged interest. To extract the money company filled thousands of cheque bounce cases in Court. I made several complaints with RBI, RBI from more than 6 months tactically and shamelessly not taking any action against Indiabulls and to protect and please to Indiabulls, neglecting all my complaints on one or another technical ground.

Against my several complaints to RBI by written letters, Emails, Reminders, telephone call RBI just ask reply of Indiabulls, Indiabulls given false statement in the matter and RBI satisfied and not ready to investigate my complaint. The whole system is working with Indiabulls. To earn huge money Indiabulls bring the thousands of poor borrowers to suicidal point. Financial Company openly violate the fair business practice guidelines given by RBI. I request you to please investigate the matter and take appropriate action against financial company. From last six months I am unable to concentrate on my job duty and facing tremendous mental agony due to harassment and torture by Indiabulls.

Who in their right mind would allow anyone to have a blank security check or blank SIGNED loan agreement?

Common sense moment here:


If you signed a blank check and a blank loan agreement, chalk the experience up to “stupid tax” – get an extra job and start paying….. and don’t repeat!!!!


I just wanted to say hi and introduce myself

Hi, I just wanted to say hi and introduce myself. I live in PA my husband and my daughter. My daughter is disabled so I haven’t been able to work for awhile. Also her expenses were very high as I was unable to access professionals threw our insurance. Finally, I’ve been able to fix that situation. After must red tape and everything will be covered. So I’ve written down our debt and rated it by interest rates. We are going to pay the highest first.

I called the lowest yesterday to ask for a credit limit increase. They gave that to me and my plan was to transfer the highest at 16.99% to the lowest at 6.99% with the plan to pay everything off within 9 months or so. But then even though they gave me the increase the rate they quoted was the cash advance rate! Back to the drawing board I guess.


Increase in rate unexpected

I was recently changing to receive my credit card statements via email. one card, of Citi, i had cut up and was paying down. i called Citi to ask them for a new card because in order to change to receiving it online, i had to have the card in front of me in order to read the security code, so i have to receive a new one. i received a new one and also a letter stating that my interest went from 13.99% to 19.99%. i have the choice of accepting that increase, or turning it down, but owing the entire amount. i’m currently looking for work and an increase in interest does not help me. is ti worth talking to an agent at that company to request that the interest not be increased due to my unemployment? i had not even used the card and was paying it down for a long time. thanks.

Absolutely call them and ask for a interest rate reduction. Start by saying you’re a long time customer making payments on time and if you don’t receive a reduction you’ll be forced to find another company who will provide a better rate. Be firm and it’s none of their business that you’re unemployed. I would mention it until you find it necessary to default on payments.

Let them know that’s why Citi laid off about 35000 of its own people because they don’t work with their debtors.

I think they have you listed for two accounts now. The one you owe at 14% and a new one at 20%, make sure the account numbers are the same. talk to an agent to justify the increase. I wasn’t NICE with these folks. they borrow money from the fed at at about 3% let them know that you are also willing to file a charge on them with the Federal Trade Commission then you want to discuss this with a manager because you need someone’s name when you contact a congressional representative in relation to predatory lending practices. You will be amazed at the number of “contructive repayment ” programs these companies don’t reveal to you unless you break their stones.

For example:

  • I pushed them into a half pay agreement on a $3000 dollar debt thereby eliminating one year’s worth of finance charges.
  • I came up with $600 and they matched it so I got the debt down to $1800. The original debt was over $8000 but it took me on a learning curve over two years to figure out that I would never get this debt paid at 21%.
  • I owe $700 on this debt and I expect to be debt free of them and their cards in 3 payments.

They do all of their business out of Delaware and South Dakota by the way because most US states have banking laws that would never allow them to get away with what they get away with. Don’t be nice.Stop using their card clear your debt and then think of using a different card. PS I got Discover down to 10% and MBNA down to 3%,JCPenney I got down to 0% so you know what I am telling you is true.

I just had the same thing happen to me with another card (that I have
a very good record with). The letter said they were increasing the
rate “to maintain profitability on my account”.

Right. Like they’re not making *enough* money off of me already.

I found this link to help consumers try to negotiate a lower rate:


It’s pretty aggressive, but times like these, I guess that’s what’s needed. If anyone is successful in getting your rate(s) lowered, please post here and let us know how you did it.


Took all my tax info over to my CPA yesterday

Hi, everybody!

What was amazing to me is my driving school students and miles driven to get to them and back home for the year amounted to 11122miles….4400+ were pre 07/31/08 and 6600+ were post 08/01/08 where the divider is for what the fed gov allows mile wise in deductions….pre 07/31 it is a 51 1/2cents per mile post 08/01 it went up to 58 1/2cents per mile I am pretty sure of the amounts but do not hold me to legal advice here it might be off a bit….

So that said I am able to deduct a heck of a lot of cash out of gross earnings for miles deductable under fed rules…making it less likely I have taxes to pay….since this was my first year in business for myself I did not know what income I could generate so I did not pay 1/4ly taxes anticipated…I did not really hit black until 4th quarter anyway… Now maybe not at all with these deductions….


Moving along well..

Before, when I posted last, my bills were higher, after almost six months now, they are all coming down nicely.

Freecreditreport has my fico at 698. When my name’s ‘clean’ I won’t care about Fico anymore, but it is kind of like a ‘report card’ after having been at the bottom in 2002 of 520. this feels good. Conidering my annual income is $17,335 this last year.

Now, I have a signature closed end loan from my FCU with which I was paying off window treatments for the house. it is just about paid off (YAY!) I started off with a balance of 4700.00 a little under three years ago and am now at 688.40 USD. I see it as three months from now that will be gone.

My Penny’s and another small debt will also be gone, leaving a target card with a balance of $2889.56. They charge an APR of 22%

Question: Once the FCU loan is paid off, that will free up $200.00 a month. Should I pay off target with this, or should I get another closed end loan from Kinecta to pay Target and get the FCU’s 13% APR? Part of me wants to do that instead of Target getting that 22%. Any thoughts on this? Considering that $200.00 plus what I pay Target anyway would be going to Target without the SCEL that’s about $285.00 a month I’ll be paying them. That means about 10 months at 22% or 3 years at 13% if I were to do the SCEL. My other thought is yeah, get the SCEL and pay THEM early, but not at the higher APR.

I know going for another SCEL would be good interest-wise, but is there any other considerations I might be missing?

Congratulations on all your hard work! You’ve done a great job. I don’t know what a SCEL is so I can’t help you there. What I did was put all my things in order from highest interest rate to lowest. I’m paying off the highest interest rates first.

AH, my need to abbreviate :-) SCEL is a Signature Closed End Loan. It’s not lie a mortgage or secured, but the Federal Credit Union would pay the cards off, and I’d pay a set amount for 1-2-3- years. SCEL was my initials for the Fed. credit union’s loan.

Last night our dryer died, so there goes $329.00 for a new one. This was 18 years old an the electrical went in it :-(

At this rate I will never be able to get $1,000.00 built up.

I think I’ll do the signature closed end loan. That’ll be easiest with only one bill per month instead of three different ones. All of them are the same due dates, so….

Before you consolidate with your credit union, you should make sure a couple things happened (coming from a voice of experience):

  1. that your new interest rate isn’t super high (once the promo expires)
  2. that you close the credit cards you have AT THE SAME TIME you transfer the balances
  3. that once you get your little emergency fund saved, you pay more than the minimum (which will likely be less than you are dealing with now)

I consolidated my credit cards with a CU loan and I didn’t close them. So now, I have the same amount of CC debt I had last January AND that old debt on a CU loan.

It took me closing all my cards to stop having emergencies that required me to use them all the time.

Good luck. Do what you think will help you sleep at night, and help you get this debt paid off. Those are the two most important gauges for any decision–until, of course, we’re all out of debt!