O.K., so you owe money to several credit card companies and the bastards are calling all the time! What should you do, you ask? First and foremost, don't panic. Second, remember, you will probably have to pay them something. But the good news is it maybe a lot less than what you owe.

Let's say you owe the credit card companies $7500.00. Quite easy to do that in this day and age. Suppose you are tired of paying. Can they call you to try to collect the debt. Yes, they can. They can call between 8:00AM and 9:00 PM ANY day of the week. Can you stop the calls? Maybe, tell them you are represented by a lawyer and give them the name of the lawyer along with his telephone number and address. Not represented, tell them to stop calling you and send it to them in writing.

Now back to our example of the $7500.00. Assume you will have to pay them something. Instead of paying them the 500-600 a month. Don't pay them. Or, if you wish pay them half of what you owe them. But don't blow theother half of the money either. You probably should hold onto at least half of what you pay them on a monthly basis. After 4 or 5 months you will have $1200.00 to $1500.00 put aside.

At this point in time call them up and ask to speak to someone in their settlement division. Make them an offer of .20 on the dollar. On $7500.00 this works out to $1500.00. Tell them you are unemployed. Or things are slow. But you can borrow this money immediately from your mother(father, sister, brother,aunt, uncle etc.). Maybe ,just maybe, they will accept it. Perhaps they will counter at .50 on the dollar. Again this maybe more than what you have but less than what was owed.

If you settle the debt make sure that you get something in writing with their letterhead or name and address and with the correct acount number of the account you are settling. Make sure that the acceptance amount settles the account in full. I had a client who had to deal with Bank of America. Yeah, they accepted the .20 but for some reason they had trouble putting it into writing with the correct acount number. Amazing about BOA and how they received more bailout money that anyother bank.

If you wish to talk about life,the universe, and everything else, please fee free to contact me.

Copyright,Timothy C. Foster, 2009, all rights reserved.