Re: my situation and request that anyone with any advice…

I generally don’t post a lot, but wanted to share what has been helping me do better financially. First, let me congratulate you for the efforts you are making to turn things around. Sounds like you have made a start, and that is the hardest part! Keep your support system going–glad to see you have a counselor working with you. That will help keep you accountable until you are back on your feet.

Get yourself set up with a Dave Ramsey Financial Peace University course! I am taking one through a local church. He talks about how to pay creditors and get out of messes, and his program WORKS. He will give you hope and help you rediscover your integrity if you stick with it. You can buy his kit (13 weeks of lessons) but it doesn’t have the videos, just an audio version of the course. I wish it had the videos as they help solidify the information in my mind. It cost $96 but was worth every penny.

You sound like a good candidate for chapter 7 bankruptcy but it will be
on your credit report for 10 years. First off, congrats on taking solid steps to pull out of a terribly  difficult situation. I’m sure you’ll get lots of great advice on debt here, so I wanted to address your furniture needs.

I don’t know where you’re located, but my advice on furnishing your place is to look on Freecycle and Craigslist. Using both, you can probably find everything you need at an affordable price. And don’t worry — the place doesn’t have to be perfect from day one. Start with an essential here, an essential there.

And talk to people at church or in your community if you don’t go to
church. Most people have furniture they don’t really need but would love to lend or give to you so they have the warm fuzzies of helping a person in need.The biggest thing I’ve learned is to let go of my pride. Suze Orman said recently that having debt doesn’t make you a bad person–it just makes you bad with money. And that’s a skill so it’s correctable. Ask people for help; they’ll come through for you.

Don’t forget about thrift stores and pawnshops. Near where I live there’s a pawnshop that opened a second store just to deal with furniture. Also check out auctions. My best couch came from an auction and even though it had a broken leg it worked fine and only cost a dollar. Sometimes furniture sells good and other times you can pick up things dirt cheap. Check out yard sales and moving sales as well. A lot of times if people are moving they decide to get rid of furniture instead of moving it all to the new place. I know someone who bought a kitchen table that was all banged up with paint and other stains on the top. He cleaned it, sanded it down smooth, and refinished it and nobody would ever know it started out looking a whole lot worse.

If you are making 62K then you should be able to structure the paying
off of the debts based on importance such as truck then get going on the cards. Check into getting the cards refinanced into lower rates.

You can absolutely try to work a deal with the collection agent. Knowing that they purchased your debt(s) for pennies on the dollar, it certainly worth hurt trying to negotiate it down. Looking at your debt numbers, they certainly are not hopeless. If you make it known to the debt agent that you are doing your absolute best to pay them what you agree upon, they’ll work with you. DO NOT ALLOW them to intimidate you though. If they try to make you commit to something you cannot do, let them know that – but be firm that you will do all you can. Make it known that you have a payment plan in place (you should, at least) and you have prioritized it amongst all you creditors. Keep at it and do not give up!

My particular situation is a little bit more complex.

Well, I just started to read this blog a few weeks ago and have found many of the discussions vey helpful. However, I feel that my particular situation is a little bit more complex than the normal debtor. I’d like to give a brief synopsis of my situation and request that anyone with any advice they could offer me, would please do so.

First, I’ll give you a summary of my debt situation. I have the following debts:

  1. $76,600 in credit card debt via use of 7 different credit cards
    with 6 diferent creditors. Here is a breakdown of these debts
    (creditor; outstanding balance; account status):
    – GE MONEY BANK / PAYPAL DC; $2600; 150+ days past due
    – BANK OF AMERICA; $6000; Account Charged Off
    – CHASE BANK; $38500; Account Charged Off
    – CHASE BANK; $13000; Acount Charged Off
    – CITIBANK; $2500; Account Charged Off
    – FIA CSNA / MERRYL LYNCH; $11000; Account Charged Off
    – WASHINGTON MUTUAL / PROVIDIAN; $3000; Account Charged Off
  2. Truck loan with an outstanding balance of $9600. I have remained current on these payments. My father co-signed on this secured loan usinghis home as collateral. My truck is valued at approximately the outstanding balance of $9600.
  3. A loan from my father in the amount of $3500.
  4. I owe my girlfriend $1500.
  5. I incurred $1500 in medical bills last month.

Secondly, here is a breakdown of my current financial situation:

  1. I currently have a salary of $62,000 per year.
  2. I have $100 cash on hand and $400 in my checking account. I do not have any money in my savings account.
  3. I do not own a home, nor am I currently renting. I’m living at a friends house temporarily.
  4. I have no assets of any value.

Here is what happened. I moved a year and a half ago. I got depressed and began gambling, which turned into a coping mechanism for me, and eventually turned me into a pathological gambler. All of my debt can be linked to gambling. I lost my job last December and took a new job in January in my hometown in hopes to get my life together.

I’m currently getting much neeed help for my gambling and feel that I’m gaining control over it. I feel that the only way for me to have a chance of fully recovering from this situation is by first taking care of my financial situation. I have no way of meeting the demands of my creditors currently and am fearful of a lawsuit being brought against me. I do not know what to do. I am about to get an apartment in which I will have to buy all furniture and appliances, as I currently have nothing. I’m also looking into seeking psychiatric help for my numerous behavioral health problems as well as seeking financial counseling.

Does anyone have any thoughts on how I should handle this? I’m beginning to get numerous calls from collection agencies on a daily basis. My accounts that have been charged off were charged off within the last 1 or 2 months. The collection agencies that have been calling include I.C SYSTEMS, NCO FINANCIAL, ALLIANCE ONE, HANNA FREDERICK J & ASSOCIATES – ATTORNEY AT LAW, ENCORE RECEIVABLES MANAGEMENT, and a few others.