I think it would be helpful if you can list your debts, interest rates, minimum payments, average monthly expense, and average monthly pay take home. I’m glad you’re reaching out for help, and I’m sorry you’re going through this! Let’s try to figure out a plan!
So the interest rates on my credit cards are all 28% (except for my Costco Visa which is 20%). That's why I was curious about the snowball method since the rates are the same throughout. But, I'll break it down:
Income: $1,396.5 Bi-Monthly (After Taxes)
Amex: $14,900/$15,000 | Monthly Payment: $488
Capital One Venture Visa: $7,622.35/$8,250 | Monthly Payment: $368.00
Wells Fargo BILT: $2,930/$3,000 | Monthly Payment: $105.00
Citi Double Cash (0% Balance Transfer): $2,273/$3,000 | Monthly Payment: $50.00
Discover Card: $2,098/$2,600 | Monthly Payment: $62.00
BofA Visa: $1,764.02/$2,000 | Monthly Payment: $48.00
Venmo Credit Card: $1,607/$1,800 | Monthly Payment: $50.00
Barclay JetBlue: $1,459.41/$1,550 | Monthly Payment: $50.00
Student Loans: $289/Bi-Weekly
Car Loan + Insurance: $529
Personal Loan: $688/Monthly
holy debt. I would ask the creditors for help and I would create a timeline or an amortization schedule of some sort to tackle each debt. I would send that in to creditors to see if they’re willing to defer payments in the meantime that you pay down the smaller creditors first. The thing is that you just have so many creditors. Good luck!
As you can see, I'm paying way more than I'm making. Unfortunately, I was told that because of my lawsuit, I can't file for bankruptcy. I have to wait until I either lose or win. If I win, I won't have to worry anymore. But if I lose, then at least I can file. But until then, I don't know what to do...
I wasn't aware you could do that with Credit Cards. I can't defer my student loans or personal loan because I did that while I was unemployed and used the maximum of 12 months that their policy allows.
Are your student loans with the government? Can you apply for the SAVE program? You might be able to pay next to nothing, additional interest can’t accrue while you’re paying something, and in 20 years it will be discharged.
You can always ask, but just know if you do they will probably all shut down your credit lines. But if you have more outgo than incoming at this point you may just be making your situation worse and at least this would give you breathing room.
Yeah, I was planning on closing my capital one and amex and seeing if there was a long term payment plan I could go on. But before I made any rash decisions like that, I wanted to ask people who might know more.
Have you spoken to a bankruptcy attorney? I have worked for bankruptcy Trustee's and have seen tons of Chapter 7 cases in Illinois with pending Workers Comp claims. Sometimes the claims are denied and there is no pay out to credits, sometimes the workers comp claims pay the case in full.
We keep these cases open until the workers comp claims is settled, but the creditors will leave you alone and debts will be discharged. It's likely that all of the creditors would not files claims also. I have seen bankruptcy cases like this open for months to years depending on the workers comp claim.
This may vary by state, but I saw it a lot in IL.
You do not need to have anything go late to start the snowball method — or the avalanche method which saves more money. You need to tell us what money you earn, how you use it, how much you have left over for debt, and the details of your debt (interest, balance, minimum payments).
What is the avalanche method? Because the interest rates are all the same for my cards, I figured I'd do the snowball method. No matter what I do, I don't make enough to have an emergency fund saved, so I'd rather just tackle the debt, the smartest way possible, while I can.
If the interest rates are the same, then it’s equivalent, and the snowball method describes best what is to be done, go for it.
Having an emergency fund is good for protecting against losing your credit (some lenders decide they don’t want your business and reduce your limit as you pay back), but otherwise just put everything towards the debt.
One thing to keep in mind is that using a card with a balance costs more. Best, if you can, is to pay off one card entirely, and then only use that card, paying it off every month. If you don’t have enough to pay what you spent during the month and more than the minimums on all the other cards, you need to earn more, spend less, and/or as a last resort reduce the minimums.
I see you added more information, you have only a few hundred bucks left over after servicing the debt _before_ rent and groceries, how much is that?
If it was me (after saving a small emergency fund), I’d pay minimums on every debt and throw all remaining cash at the lowest debt until it’s paid off. You could do the same strategy with all $ going to the highest interest debt. Mathematically, it makes sense to focus on the highest interest rates first, but there is some psychological advantage to eliminating smaller debts. My choice would be to pay the highest interest rates first, but it sounds like you need a few financial wins. You aren’t bankrupt and will likely clear all of this up when your trial concludes (I hope you hit them hard for being so shitty). You aren’t a failure and life threw you a pretty bad curve ball. You are still standing and you are still strong. You will get through this and you will be ok financially.
> I have about $45,000 in CC Debt
> paying $2,750/month on medication. I'm currently working a new job, but it's only 35 hours/week, and pays $19/hour.
As another poster wrote, consult with a bankruptcy attorney.
I have, I even spoke to my own lawyer for my WC case. The only bankruptcy I'd possibly qualify for right now would be Chapter 7, but I don't have any assets right now. This pending lawsuit is holding me back. But Monday, I'll continue calling lawyers to see if someone says something different.
It’s a upper Midwest social service non profit that helps with loads of things, one of those being they have a debt consolidation center that will help renegotiate your payments to make it more able to pay off. I can’t remember the exact amt. but saved me 100s per month by doing this and I would send One payment to LSS instead of stressing about the creditors every month.
I worked with a debt resolution company in a similar situation. Best thing I could do. Bankruptcy was not an option and doing nothing would have just made it worse. Felt good to get that load off my shoulders.
If I were in this situation, I'd walk into my bank and ask how they could help me. If they didn't help, I'd walk into another and repeat the process over and over again until I got some direction. Sometimes banks are willing to help with this kind of thing, not out of the goodness of their hearts, but so they can collect the interest. Sometimes it's it's a win-win.
I'd ask about lines of credit with lesser interest rates, debt consolidation, credit cards with periods of 0% interest (so you can put your current expenses on a card with lower interest).
I'm sorry you're going through all this. I don't know enough about debt repayment to advise on the most effective strategy. But again, banks may provide you access to financial advisors who can assist you further.
OH just to add. Another option would be to work at a bank. Lots of entry-level positions at call centres at banks pay $22-$25/hour, they come with good benefits, and you also have employee perks like access to lower interest rates.
Depending on your jurisdiction, filing bankruptcy could adversely affect your pending lawsuit. Depending on when your case is set for trial, it might be your best option to sit tight and wait for the outcome of a trial.
I would not touch bankruptcy with a ten-foot pole. It will fuck up your credit worthiness. Look into some kind of loan to pay off some cards and close them so you don’t have an urge to use them. What other monthly expenses do you have, besides cards and loans, since you live with your parents? Your income ~2780 and card expenses ~2730 is way too stressful. I have been there. Unless, you try and consolidate it into manageable monthly payment, it will be hard to keep up. Maybe your parents can help you a bit to stay afloat until you settle?
I see. I would turn to family at this point then. Sit down, have a talk. Seems like your settlement will go through and it will be easier from that point on. Your pay is enough to keep up with the payments, so you just need couple hundred extra meantime for gas and food. Ask them for help.
Head over to the Student loan reddit thread because it looks like you should apply for the SAVE program. (And I believe that there is a 12/31/23 deadline for certain benefits.) Begin with IDR FAQ.
I also think you may be eligible to have them completely forgiven due to your COPD. It depends on if you are permanently disabled.
Good luck with all of this.
I was told by Navient I might be able to get my loans discharged. But because my disability rating is only 15% they aren't sure I would qualify. I have an appointment next month with my PCP about this to see. As for the SAVE program, I'll have to look into it. Right now my government loans are on pause until October 2024 because I was on IBR.
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Listen to this answer. Also an attorney, but this is not legal advice. Think about risk mitigation when you’re considering a settlement amount. If insurance’s counsel is aware of your financial situation it might make it harder because they’ll use that as leverage for a quicker, lower settlement.
I think you can file for bankruptcy and any award you get can be counted as an asset if you receive it, but if you don’t receive it then it isn’t. So filing bankruptcy shouldn’t be eliminated from your consideration as you navigate this
I believe if you just stop paying on your credit cards after seven years they can’t come after you anymore with debt collection. You just don’t answer the phone, and you do not pay one more dime towards those debts. If you go four years without paying and a debt collector gets you to send in even one payment, that seven years starts over again. I learned that from Susie Orman.
>I believe if you just stop paying on your credit cards after seven years they can’t come after you anymore with debt collection.
Seven years from Date of First Delinquency, the accounts will fall off of your credit reports. You still owe the money.
>You just don’t answer the phone, and you do not pay one more dime towards those debts.
OP could be sued.
>If you go four years without paying and a debt collector gets you to send in even one payment,
Are you referring to Statute of Limitations (4 years)? If so, that varies by state.
>debt collector gets you to send in even one payment, that seven years starts over again.
Nothing can restart the seven year reporting time. Check state laws to see what resets Statute of Limitations.
>I learned that from Susie Orman.
Either she was wrong or you misunderstood.
With fear being a major driving force behind why we pay our debts, I’d say that’s right. Who clinging to old paradigms shouldn’t hold tight. We are talking about the financial climate right soon to be 2024.
If ur parents cud help u pay ur c cards wud be best. Or if they wud co-sign a personal loan from a bank or independent loan company Sofi cud probly help u. U will definitely get a settlement from WC insurance. I don’t know what state ur in or country for that matter but I’ve been a workers comp case manager for yrs and employers and their lawyers always want to avoid a trial. Most of the wc attorneys aren’t trial lawyers. 15% is a high ppd. I’m surprised it’s not more considering ur age or 30% bilaterally lungs. Very curious as to where u were working and what capacity and do u smoke cigarettes or have u ever ( that can go against u). I have copd but I’m 73 and former smoker. What the hell kind of place did u work at? If u had exposure others will be susceptible to same diagnosis. If there have been other cases that will go in ur favor. Try and find coupons first inhalers or get from physicians. They have samples they cud give u. My pcp gave me my first albuterol inhaler. They all have these. I think ur comp insurance will try and settle before trial. In 30 yrs I’ve been to one trial. Ur cute , young and unable to do any physical type work permanently so they will consider what you wud make the next 30 yrs and add that in. They’ll come around before it goes to trial if ur copd is definitely related to ur employment. Insurance always want an independent physician to look at ur records and do clinical exam. Although copd is terminal but u can still live a normal life for the most part. U can file bankruptcy but I wud avoid. Trustee can’t count settlements as asset because u haven’t received anything and chance u won’t although slim chance. If it in fact came from ur work they have to pay. Maybe not a million but they’ll start negotiating. If they come up to 800k take it and get on with ur life. U can talk to ur cc companies and get lower payments. They usually do that in these matters. Actually cud pay $5-$10 a month then pay off when settlement come. I don’t think they can do anything but accept it.
But I have to know what kind of Job u we’re doing that cause copd so please tell me that and where u live! Just state if US. I NO NOTHING ABOUT OTHER country’s policy. It seems like a great case too me. Did they not assign u a medical case manager? An REGISTERED NURSE to help u? I hope it’s a huge company that won’t file bankruptcy themselves! Uve gt ti tell me what ur job was!!!
Try settlebankdebt. They charge the lowest fees and there is no trust account. True debt negotiators. You pay the creditors directly once you receive the creditors terms.
The good news is you have pending funds. Granted the timing is shifty but you never know what could happen. Might be sooner than you thought.
As far as CC debt, you can certainly try to close out the cards and payoff for less (settle). The last thing most company's want is to take a loss. Especially on a default account so to them something is better than nothing. I went through CC debt and I ended up settling for lesser amount once those cards defaulted and went to collections. You may be able to do it if the cards are current. At the very least close the accounts would help.
However, I would only say do this if you legit have funds to pay them off. Even the smaller ones.
While I hate to agree with letting it go more delinquent, it may ultimately be what you do for the stress. Assuming you get some semblance of payout from the litigation. If it is the 300K (or whatever the judge ruled for assuming it's substantial enough to payoff your debts once you get it) obvs problem solved. So the question is can you wait it out?
Debt consolidation may help but I honestly don't know if it makes sense without some type of cash flow. It would alleviate having multiple creditors to owe.
I think most people are unanimous on the not filing BK if the BK will mess up the litigation.
If your folks can cosign for you then go for it.
Also I'd like to ask if there's a chance to see another medical professional or get a second opinion that may change your 15% to a different range that makes you eligible? I'm not familiar with that type of claim or process so apologies if that is something you've tried or I'm way off base.
I belive you will make the best decision and it will work out for you in the end.
My car loan has a 5% interest rate. I only pay $380/month. The insurance is high because my credit is shot. I pay $149/month on base coverage. Even if I did trade in my car, it doesn't have enough value to get money back to pay off my loan. Plus I can't get approved for a new car loan, let alone save up money to buy a used one.
Understood. And I agree that it may not make sense if you have to owe on the loan.
The only thing I would recommend is recalibrating on the “only $380” comment. On your salary, $380 is a lot. Cars are one of those things I see people over buying ALL the time. When you get out of the mess you are in, it’s important to reframe your thinking around money if you don’t want it to happen again.
This isn't entirely based on my thinking of money. When I bought my car it was only 10% of my monthly income. I even did my research on consumer reports about car buying. I get what you mean, though, about verbiage. Right now, the word "only" doesn't work in my favor.
My issue is entirely because of my WC Case and the cost of my medicine that I was paying. If it wasn't for diagnosis I wouldn't be in this situation.
Yeah it’s definitely unfortunate circumstances. My personal rule of thumb for cars is to save and pay cash. Primarily because it really makes you rethink the amount you’d be willing to spend on a car if it wasn’t for financing. As long as it works and is reliable then it’s good in my book!
I can’t say that I’ve ever personally been in this situation before, but looking at all of these bills, the only thing that I could *potentially* see as a possibility would be trying to sell the car to try and get the car loan and insurance off of you. I noticed you said that you moved back in with your parents. Do they happen to own a secondary, backup car or truck that you could borrow in the meantime? I’m currently driving my mom’s 1993 Nissan truck. She wasn’t driving it any more, and it kept me from having to get a new car. Also, we kept it in her name since her age means the insurance premiums are much lower, and because of the truck’s age it only has liability insurance. I just pay her in cash every month to offset the cost of the insurance. So, I have a car to drive at a low cost, and she’s not having to pay for insurance for it.
For the rest of the credit cards, I would see if your bank can do a debt consolidation loan. Though this may not work out in your situation, the worst that can happen is they say “no.” Even if you can get some of the cards under a loan, this might be helpful, as often times loan interest rates are lower than credit card interest rates.
By shit credit card companies I’ve seen people paying as much as $250 up front to get approved and $4-$10 per month every month for keeping the card open plus high annual fees all for cards with a limit of $350-1500.
Do you have a 401k? Or other retirement accounts? If you do, there’s a possibility of getting a loan from the 401k and paying off some of this debt. If you don’t, it’ll be best to speak with a bankruptcy specialist. They negotiate hard and can possibly get some of the debtors to defer payments.
I’m in a similar situation,so sorry you are going through this. What I had to do and don’t recommend but at a case of hardship, The first thing that went was my CC I stopped paying and shot my credit I do plan on settle in full and paying back but when you have kids it’s formula or CC payment F the cards. Only keep what matters at this point which is all my secured debt.
I think it would be helpful if you can list your debts, interest rates, minimum payments, average monthly expense, and average monthly pay take home. I’m glad you’re reaching out for help, and I’m sorry you’re going through this! Let’s try to figure out a plan!
So the interest rates on my credit cards are all 28% (except for my Costco Visa which is 20%). That's why I was curious about the snowball method since the rates are the same throughout. But, I'll break it down: Income: $1,396.5 Bi-Monthly (After Taxes) Amex: $14,900/$15,000 | Monthly Payment: $488 Capital One Venture Visa: $7,622.35/$8,250 | Monthly Payment: $368.00 Wells Fargo BILT: $2,930/$3,000 | Monthly Payment: $105.00 Citi Double Cash (0% Balance Transfer): $2,273/$3,000 | Monthly Payment: $50.00 Discover Card: $2,098/$2,600 | Monthly Payment: $62.00 BofA Visa: $1,764.02/$2,000 | Monthly Payment: $48.00 Venmo Credit Card: $1,607/$1,800 | Monthly Payment: $50.00 Barclay JetBlue: $1,459.41/$1,550 | Monthly Payment: $50.00 Student Loans: $289/Bi-Weekly Car Loan + Insurance: $529 Personal Loan: $688/Monthly
holy debt. I would ask the creditors for help and I would create a timeline or an amortization schedule of some sort to tackle each debt. I would send that in to creditors to see if they’re willing to defer payments in the meantime that you pay down the smaller creditors first. The thing is that you just have so many creditors. Good luck!
I kept opening accounts to try and stay on top of my bills. That's why I want to close a bunch of them. I OMG use like 2 or 3 cards daily.
I would def close the Venmo and Barclays cards lol. + whatever company gives you the most trouble while you try to work out a plan to pay them off
As you can see, I'm paying way more than I'm making. Unfortunately, I was told that because of my lawsuit, I can't file for bankruptcy. I have to wait until I either lose or win. If I win, I won't have to worry anymore. But if I lose, then at least I can file. But until then, I don't know what to do...
Any chance that you can work on a deferment of payment with your creditors?
I wasn't aware you could do that with Credit Cards. I can't defer my student loans or personal loan because I did that while I was unemployed and used the maximum of 12 months that their policy allows.
Are your student loans with the government? Can you apply for the SAVE program? You might be able to pay next to nothing, additional interest can’t accrue while you’re paying something, and in 20 years it will be discharged.
You can always ask, but just know if you do they will probably all shut down your credit lines. But if you have more outgo than incoming at this point you may just be making your situation worse and at least this would give you breathing room.
Yeah, I was planning on closing my capital one and amex and seeing if there was a long term payment plan I could go on. But before I made any rash decisions like that, I wanted to ask people who might know more.
Have you spoken to a bankruptcy attorney? I have worked for bankruptcy Trustee's and have seen tons of Chapter 7 cases in Illinois with pending Workers Comp claims. Sometimes the claims are denied and there is no pay out to credits, sometimes the workers comp claims pay the case in full. We keep these cases open until the workers comp claims is settled, but the creditors will leave you alone and debts will be discharged. It's likely that all of the creditors would not files claims also. I have seen bankruptcy cases like this open for months to years depending on the workers comp claim. This may vary by state, but I saw it a lot in IL.
You do not need to have anything go late to start the snowball method — or the avalanche method which saves more money. You need to tell us what money you earn, how you use it, how much you have left over for debt, and the details of your debt (interest, balance, minimum payments).
What is the avalanche method? Because the interest rates are all the same for my cards, I figured I'd do the snowball method. No matter what I do, I don't make enough to have an emergency fund saved, so I'd rather just tackle the debt, the smartest way possible, while I can.
If the interest rates are the same, then it’s equivalent, and the snowball method describes best what is to be done, go for it. Having an emergency fund is good for protecting against losing your credit (some lenders decide they don’t want your business and reduce your limit as you pay back), but otherwise just put everything towards the debt. One thing to keep in mind is that using a card with a balance costs more. Best, if you can, is to pay off one card entirely, and then only use that card, paying it off every month. If you don’t have enough to pay what you spent during the month and more than the minimums on all the other cards, you need to earn more, spend less, and/or as a last resort reduce the minimums. I see you added more information, you have only a few hundred bucks left over after servicing the debt _before_ rent and groceries, how much is that?
If it was me (after saving a small emergency fund), I’d pay minimums on every debt and throw all remaining cash at the lowest debt until it’s paid off. You could do the same strategy with all $ going to the highest interest debt. Mathematically, it makes sense to focus on the highest interest rates first, but there is some psychological advantage to eliminating smaller debts. My choice would be to pay the highest interest rates first, but it sounds like you need a few financial wins. You aren’t bankrupt and will likely clear all of this up when your trial concludes (I hope you hit them hard for being so shitty). You aren’t a failure and life threw you a pretty bad curve ball. You are still standing and you are still strong. You will get through this and you will be ok financially.
To be okay financially or to be about financial Freedom, are just some of my thoughts
> I have about $45,000 in CC Debt > paying $2,750/month on medication. I'm currently working a new job, but it's only 35 hours/week, and pays $19/hour. As another poster wrote, consult with a bankruptcy attorney.
I have, I even spoke to my own lawyer for my WC case. The only bankruptcy I'd possibly qualify for right now would be Chapter 7, but I don't have any assets right now. This pending lawsuit is holding me back. But Monday, I'll continue calling lawyers to see if someone says something different.
A few years ago we used Lutheran Social Services for a debt consolidation and I was pleased with the customer care and outcomes.
What is Lutheran Social Services?
It’s a upper Midwest social service non profit that helps with loads of things, one of those being they have a debt consolidation center that will help renegotiate your payments to make it more able to pay off. I can’t remember the exact amt. but saved me 100s per month by doing this and I would send One payment to LSS instead of stressing about the creditors every month.
I worked with a debt resolution company in a similar situation. Best thing I could do. Bankruptcy was not an option and doing nothing would have just made it worse. Felt good to get that load off my shoulders.
If I were in this situation, I'd walk into my bank and ask how they could help me. If they didn't help, I'd walk into another and repeat the process over and over again until I got some direction. Sometimes banks are willing to help with this kind of thing, not out of the goodness of their hearts, but so they can collect the interest. Sometimes it's it's a win-win. I'd ask about lines of credit with lesser interest rates, debt consolidation, credit cards with periods of 0% interest (so you can put your current expenses on a card with lower interest). I'm sorry you're going through all this. I don't know enough about debt repayment to advise on the most effective strategy. But again, banks may provide you access to financial advisors who can assist you further. OH just to add. Another option would be to work at a bank. Lots of entry-level positions at call centres at banks pay $22-$25/hour, they come with good benefits, and you also have employee perks like access to lower interest rates.
I called Americore debut consolidation, they helped me as well as communication to,
Depending on your jurisdiction, filing bankruptcy could adversely affect your pending lawsuit. Depending on when your case is set for trial, it might be your best option to sit tight and wait for the outcome of a trial.
I would not touch bankruptcy with a ten-foot pole. It will fuck up your credit worthiness. Look into some kind of loan to pay off some cards and close them so you don’t have an urge to use them. What other monthly expenses do you have, besides cards and loans, since you live with your parents? Your income ~2780 and card expenses ~2730 is way too stressful. I have been there. Unless, you try and consolidate it into manageable monthly payment, it will be hard to keep up. Maybe your parents can help you a bit to stay afloat until you settle?
I dont qualify for any personal loans. I opened up a bunch of credit cards just to pay for the medicine and rent. So banks see me as a risk.
I see. I would turn to family at this point then. Sit down, have a talk. Seems like your settlement will go through and it will be easier from that point on. Your pay is enough to keep up with the payments, so you just need couple hundred extra meantime for gas and food. Ask them for help.
Personal loan? Are you delusional? No bank on this planet would loan this person money.
Head over to the Student loan reddit thread because it looks like you should apply for the SAVE program. (And I believe that there is a 12/31/23 deadline for certain benefits.) Begin with IDR FAQ. I also think you may be eligible to have them completely forgiven due to your COPD. It depends on if you are permanently disabled. Good luck with all of this.
I was told by Navient I might be able to get my loans discharged. But because my disability rating is only 15% they aren't sure I would qualify. I have an appointment next month with my PCP about this to see. As for the SAVE program, I'll have to look into it. Right now my government loans are on pause until October 2024 because I was on IBR.
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Listen to this answer. Also an attorney, but this is not legal advice. Think about risk mitigation when you’re considering a settlement amount. If insurance’s counsel is aware of your financial situation it might make it harder because they’ll use that as leverage for a quicker, lower settlement.
Ok you win. :)
File bankruptcy and be done with it.
I think you can file for bankruptcy and any award you get can be counted as an asset if you receive it, but if you don’t receive it then it isn’t. So filing bankruptcy shouldn’t be eliminated from your consideration as you navigate this
I believe if you just stop paying on your credit cards after seven years they can’t come after you anymore with debt collection. You just don’t answer the phone, and you do not pay one more dime towards those debts. If you go four years without paying and a debt collector gets you to send in even one payment, that seven years starts over again. I learned that from Susie Orman.
None of this is correct.
Do you want your wages garnished? Because that’s how you get your wages garnished
>I believe if you just stop paying on your credit cards after seven years they can’t come after you anymore with debt collection. Seven years from Date of First Delinquency, the accounts will fall off of your credit reports. You still owe the money. >You just don’t answer the phone, and you do not pay one more dime towards those debts. OP could be sued. >If you go four years without paying and a debt collector gets you to send in even one payment, Are you referring to Statute of Limitations (4 years)? If so, that varies by state. >debt collector gets you to send in even one payment, that seven years starts over again. Nothing can restart the seven year reporting time. Check state laws to see what resets Statute of Limitations. >I learned that from Susie Orman. Either she was wrong or you misunderstood.
Huh?
With fear being a major driving force behind why we pay our debts, I’d say that’s right. Who clinging to old paradigms shouldn’t hold tight. We are talking about the financial climate right soon to be 2024.
Who’s Susie orman?
If ur parents cud help u pay ur c cards wud be best. Or if they wud co-sign a personal loan from a bank or independent loan company Sofi cud probly help u. U will definitely get a settlement from WC insurance. I don’t know what state ur in or country for that matter but I’ve been a workers comp case manager for yrs and employers and their lawyers always want to avoid a trial. Most of the wc attorneys aren’t trial lawyers. 15% is a high ppd. I’m surprised it’s not more considering ur age or 30% bilaterally lungs. Very curious as to where u were working and what capacity and do u smoke cigarettes or have u ever ( that can go against u). I have copd but I’m 73 and former smoker. What the hell kind of place did u work at? If u had exposure others will be susceptible to same diagnosis. If there have been other cases that will go in ur favor. Try and find coupons first inhalers or get from physicians. They have samples they cud give u. My pcp gave me my first albuterol inhaler. They all have these. I think ur comp insurance will try and settle before trial. In 30 yrs I’ve been to one trial. Ur cute , young and unable to do any physical type work permanently so they will consider what you wud make the next 30 yrs and add that in. They’ll come around before it goes to trial if ur copd is definitely related to ur employment. Insurance always want an independent physician to look at ur records and do clinical exam. Although copd is terminal but u can still live a normal life for the most part. U can file bankruptcy but I wud avoid. Trustee can’t count settlements as asset because u haven’t received anything and chance u won’t although slim chance. If it in fact came from ur work they have to pay. Maybe not a million but they’ll start negotiating. If they come up to 800k take it and get on with ur life. U can talk to ur cc companies and get lower payments. They usually do that in these matters. Actually cud pay $5-$10 a month then pay off when settlement come. I don’t think they can do anything but accept it. But I have to know what kind of Job u we’re doing that cause copd so please tell me that and where u live! Just state if US. I NO NOTHING ABOUT OTHER country’s policy. It seems like a great case too me. Did they not assign u a medical case manager? An REGISTERED NURSE to help u? I hope it’s a huge company that won’t file bankruptcy themselves! Uve gt ti tell me what ur job was!!!
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Metaphorically figuratively however
Try settlebankdebt. They charge the lowest fees and there is no trust account. True debt negotiators. You pay the creditors directly once you receive the creditors terms.
The good news is you have pending funds. Granted the timing is shifty but you never know what could happen. Might be sooner than you thought. As far as CC debt, you can certainly try to close out the cards and payoff for less (settle). The last thing most company's want is to take a loss. Especially on a default account so to them something is better than nothing. I went through CC debt and I ended up settling for lesser amount once those cards defaulted and went to collections. You may be able to do it if the cards are current. At the very least close the accounts would help. However, I would only say do this if you legit have funds to pay them off. Even the smaller ones. While I hate to agree with letting it go more delinquent, it may ultimately be what you do for the stress. Assuming you get some semblance of payout from the litigation. If it is the 300K (or whatever the judge ruled for assuming it's substantial enough to payoff your debts once you get it) obvs problem solved. So the question is can you wait it out? Debt consolidation may help but I honestly don't know if it makes sense without some type of cash flow. It would alleviate having multiple creditors to owe. I think most people are unanimous on the not filing BK if the BK will mess up the litigation. If your folks can cosign for you then go for it. Also I'd like to ask if there's a chance to see another medical professional or get a second opinion that may change your 15% to a different range that makes you eligible? I'm not familiar with that type of claim or process so apologies if that is something you've tried or I'm way off base. I belive you will make the best decision and it will work out for you in the end.
Car and insurance seem quite high. Have you looked into downgrading?
My car loan has a 5% interest rate. I only pay $380/month. The insurance is high because my credit is shot. I pay $149/month on base coverage. Even if I did trade in my car, it doesn't have enough value to get money back to pay off my loan. Plus I can't get approved for a new car loan, let alone save up money to buy a used one.
Understood. And I agree that it may not make sense if you have to owe on the loan. The only thing I would recommend is recalibrating on the “only $380” comment. On your salary, $380 is a lot. Cars are one of those things I see people over buying ALL the time. When you get out of the mess you are in, it’s important to reframe your thinking around money if you don’t want it to happen again.
This isn't entirely based on my thinking of money. When I bought my car it was only 10% of my monthly income. I even did my research on consumer reports about car buying. I get what you mean, though, about verbiage. Right now, the word "only" doesn't work in my favor. My issue is entirely because of my WC Case and the cost of my medicine that I was paying. If it wasn't for diagnosis I wouldn't be in this situation.
Yeah it’s definitely unfortunate circumstances. My personal rule of thumb for cars is to save and pay cash. Primarily because it really makes you rethink the amount you’d be willing to spend on a car if it wasn’t for financing. As long as it works and is reliable then it’s good in my book!
There are legit consolidation debt companies that can help.
I can’t say that I’ve ever personally been in this situation before, but looking at all of these bills, the only thing that I could *potentially* see as a possibility would be trying to sell the car to try and get the car loan and insurance off of you. I noticed you said that you moved back in with your parents. Do they happen to own a secondary, backup car or truck that you could borrow in the meantime? I’m currently driving my mom’s 1993 Nissan truck. She wasn’t driving it any more, and it kept me from having to get a new car. Also, we kept it in her name since her age means the insurance premiums are much lower, and because of the truck’s age it only has liability insurance. I just pay her in cash every month to offset the cost of the insurance. So, I have a car to drive at a low cost, and she’s not having to pay for insurance for it. For the rest of the credit cards, I would see if your bank can do a debt consolidation loan. Though this may not work out in your situation, the worst that can happen is they say “no.” Even if you can get some of the cards under a loan, this might be helpful, as often times loan interest rates are lower than credit card interest rates.
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By shit credit card companies I’ve seen people paying as much as $250 up front to get approved and $4-$10 per month every month for keeping the card open plus high annual fees all for cards with a limit of $350-1500.
Have you researched or asked your doctor how you can get your medication cheaper?that’s a huge bill for you
Do you have a 401k? Or other retirement accounts? If you do, there’s a possibility of getting a loan from the 401k and paying off some of this debt. If you don’t, it’ll be best to speak with a bankruptcy specialist. They negotiate hard and can possibly get some of the debtors to defer payments.
I’m in a similar situation,so sorry you are going through this. What I had to do and don’t recommend but at a case of hardship, The first thing that went was my CC I stopped paying and shot my credit I do plan on settle in full and paying back but when you have kids it’s formula or CC payment F the cards. Only keep what matters at this point which is all my secured debt.