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Old 10-12-2010, 11:36 AM
Victoria Victoria is offline
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Default Settling Debt with BOA

Short back story.... Husband layed off (construction) 2yrs ago, since has found work. In 2009 I was layed off for a period of time. Over time we have used all of our savings trying to keep going and now we just can't make the payments. Before this year we have never been late on anything. But now we have a rental house we are behind on and looming CC debt.

I have a huge CC balance with BOA and this month I didn't pay the payment. I just don't have it anymore. And my balance is so high I have basically just been paying interest for months hoping something will happen and we will be able to start making bigger payments.

So I'm looking into debt settlement. I've read about people settling debts for 50% or less. So should I use a company? How do I find a reputable one?
We don't care about our credit. We have $$ set aside for vehicles, already live in the home we are going to stay in and we have been living on a cash only basis for over a year now anyhow. I have totally re-vamped my way of thinking and have been using the "envelope" system for things like saving for yearly clothing allowance, birthdays, Christmas, vehicle repairs, etc. I just want to get out of this debt so I can more forward. I can't afford to make payments each month that only go to interest, I'll never get out of this at that rate.

I also have a bunch of medical debt but I have that under control and am up to date on payments. My kids have some medical issues and of course that is my first priority.

If I use a company to help me do they help settle the debt and then I make payments to them? I can handle payments around $400 a month and will likely get about $4k back at tax time I can use also.

Advice?
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Old 10-12-2010, 03:54 PM
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DavidBibby DavidBibby is offline
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Default Re: Settling Debt with BOA

Victoria,

I think this thread might help you.

www.thefinanceforums.com/credit-cards-4145.html

If not, feel free to post any questions and I'll do my best to answer.
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Old 10-13-2010, 03:30 AM
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sapphirecapital sapphirecapital is offline
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Default Re: Settling Debt with BOA

call BoA and tell them,, no money, you need them to cut the interest and the amount and give you a principal repayment, if they do not react don't panic, wait for 90 days and start again, however remember whatever they waive is seen as taxable income
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Old 10-27-2010, 04:51 PM
cjscully cjscully is offline
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Default Re: Settling Debt with BOA

Bank of America has recently taken the position that they will not work with third party debt settlement companies.

Debt settlement is still an option for you but you'd have to be willing to do it yourself. Here's the simple how-to.
1. Put the $400 per month you can afford aside each month. Use an account that makes it difficult for you to spend it on a whim - definitely don't leave it in your checking account or a regular savings account tied to your atm card.
2. When you have about 30% of the balance saved, contact Bank of America and offer them 25%. This gives you a little room to negotiate up to 30% if you must. If the negotiation is successful, you're in good shape. If not, you'll likely find out what their "minimum" settlement amount is.
3. Save more money and try again at a later date if needed.
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