Verbally rejected after writting a physical letter

So, I was by phone today-verbally rejected after writting a physical letter and mailing it to the collections agency offering to start a payment plan making out a check today and sending it out. I went on the freefax site and copied it to the original medical compay/Doctor’s billing dept. that hired them and said my money was being refused. I wonder what this will do? I just want the darn agency to accept the payment plan. Can we turn them on eachother and get what we want? Maybe I will in this case.

I usually offer the CA (collection agency) 10% of the balance they claim and demand a letter stating that they will report the account paid in full to the credit bureaus. Sometimes they will accept and other times they want more like 40% of the balance. That starts a negotiating cycle where we usually settle on 20-25% of the balance. I took on a 2nd job just to pay off all my accounts.

What about the IRS rules on settling debt? Don’t you have to claim the difference as income? I would like to settle my debt and straighten out my credit. I became ill recently and by the time I was able to receive disability, I was slammed with medical bills. My credit was hurt during the disability process. I was fired while on FMLA. Even though that is illegal, my lawyer said we couldn’t do anything about it because technically I was employed by an employment agency and not the company that fired me. Nonetheless, under the rules, even though I qualified for unemployment I could not collect while I was waiting for a disability determination, which took 18 months (and I’m one of the lucky ones!).

Having to go without any income for 18 – 24 months or more is designed to ruin one’s credit. Add on tens of thousand in medical bills in the interim and say goodbye to any savings and so on, you get the idea. I was just getting my credit straightened out too. I’ve been sending cease and desit letters to keep my phone from being a nightmare and paying what I can. More recently I’ve been worrying how I am going to pay rent with 500+ for medicare costs per month, not including prescriptions. And the medical bills aren’t over. I still need a kidney transplant. So I need the medical coverage. After waiting 25 months for medicare, I find out it will cost more than private insurance did. So I’ve wanted to straighten out my credit, but even if I can get a creditor to accept 10%, is the IRS going to charge me for the other 90%, and how much?

Looks like I’ll have to declare the amount written off as income and the banks/creditors can declare the amount written off as a bad debt expense. I love our congressman when they pass laws that put us (the consumer) at a disadvantage. I don’t see the point of trying to straighten out my credit. It’s double dipping. The company gets to write off the loss and someone, the IRS and the company now both still collect on the debt. Until consumers get some kind of relief, I’m taking care of myself.

I believe the correct answer is, you need to be prepared to pay the taxes.  You are not required to declare it unless the financial institution submits a 1099.  I would not suggest asking them if they are submitting one, but wait and see.

If you file bankruptcy and you are married

Does any one know if you file bankruptcy and you are married do you both have to file? I am in forclosure right now and have a sale date the bank i have been trying to get the bank to modify my loan and have asked them to postpone the sale date. I was told they would not do it untill 10 days before the date. that does not give me much time to do anything.

You both do not have to file. However if one of you don’t file, the creditors of your joint debts will go after the one who didn’t file in order for them to get paid. It is usually cheaper to file a joint bankruptcy than to file 2 separate individual bankruptcies; so you should consider it. However, you should discuss this with an attorney as they may be able to offer advice to help your particular situation. But it would be best if you both file because if not they se going to your spouse pay your debt.

My co worker has two pay day loans she is struggling with. She has offered to pay them 100 dollars monthly and they are refusing to work with her. They told her she would have to do arbitration to request a different payment arrangment. I feel really awful for her, her husband abandoned her with 2 kids, no education and she’s living on just above minimum wage. I know the pay day loan was a bad choice, but I know she felt she had no where else to turn. She doesn’t want to default, but needs a workable payment arrangment. Does anyone know what this arbitration process is, and will it help her? What about consolidating the loands, they are with the same place?

I am new to this blog. Arbitration is a much more workable solution than going to court, however in this case, the Arbitration officials or organization is selected by the lending company. I would suggest that your friend pay $100.00 on her account until it is paid off. Send the payments by mail, certified, return receipt, along with a letter explaining her situation and proposing the new repayment plan. Hope this helps.

The deck is stacked against anyone who is foolish enough to pay off their debts. File bankruptcy and your credit score will return faster with less cost and hassle than if you negotiate a deal. Sad but true. I would never call say that paying off one’s debts is foolish, it is the right thing to do if one can.  There are occasions where a lender forces a person into bankruptcy court because the lender (or collection agency) won’t work with the individual.  I have settled several debts through negotiation and have paid off all my debts over the past 4 years and watched my credit score climb rather quickly.  HOWEVER, I do not intend to use the credit score to ever borrow money again except maybe on another house once I sell my current one.  But only when I know I have 6 months expenses in savings and have at least an additional 20% down. One would be very wise to read Dave Ramsey’s books about money and put them into practice.

I have decided to throw as much at our debts as possible

DebtsI have decided to throw as much at our debts as possible. First, I will work on building an emergency fund ($1000-$1500); then, pay extra on any debt that has fallen even a little tiny bit behind. I want everything up to date. Then, I want to cut our expenses even more than I have last year. Our only “splurge” right now is cable, since we don’t go out at all. We work, spend time with our child & each other. We look around for free or low cost things to do as a family. This year, we are going to spring for the zoo membership, since we go often.

Ultimately, I want to get our wall-to-wall carpet ripped out. All of it.

First up will be our kitchen (I did not do it!) and our dining room. In its place, there will be tile. I am soooooooooo looking forward to solid surfaces and no carpet in these two areas. Before the end of 2008, it will be installed. My goal is by the end of August. I want to squirrel away 80% of the money before getting the tile installed. I don’t want to increase our debt load at all. Someone, I believe it was Herlean, mentioned having a written plan for the debt paydown this year…..if you dont mind me asking, what does your plan involve and what did you do to set it up? I think putting it in writing would really help me too..

I haven’t been online in a few days.

What I did was take a piece of notebook paper and gathered every single statement that I could find. I wrote down in column form, listing the highest interest rate down to the lowest. Some people write highest balance down to the lowest. I added a column for the due date, the date I need to mail the bill so it is not late. Later, when I put it on an Excel spreadsheet, I added the mailing addresses in another column. I find it very eye-opening to see the total that we owe each month, the total of all of our debt, including the mortgage, on paper.

For instance:

Who Do I Owe? Balance Payment Due Date Mailing Date Interest

Mastercard $3,098.76 $35.00 March 1 February 15 7.85%
Sears $975.88 $10.00 March 10 March 1 22.00%
Auto Loan $1,000 $350.00 March 15 March 1 10%

This way, you will see how much you owe in black & white and have a real clear picture of what you owe. It will make you somewhat sad, but it can also fire you up once you decide to pay it off and get it done with.

I am struggling with debt right now and really hoping to get a few pointers and some camaraderie here. I look forward to getting to know you all. I know your struggle all too well. Years ago I had a college instructor that said “debt is economic slavery.” That is all too true. The key to getting out of debt is changing your view toward money and spending. I’ve gotten out of debt only to get right back in. I am still in debt but am getting out by the grace of God and intend to stay out. I like to listen to Clark Howard and he has some wonderful resources at Also will show you how to make even a tiny bit of money go a long way — or at least further than it does for most folks.

That’s what I hope to do with this juniper bunch

That’s what I hope to do with this juniper bunch when they call me. I’m on a cell phone as when we had the DSL taken out (Went to Cable) The phone line was shot to heck. so cell’s better anyway. I rarely use a phone, so…. We’ll see by next week what they say. I dont know much about this whole group thing im in school and im doing this for an assignment. however this topic is a very common topic around my house. me and my fiance are having trouble with not getting out of debt.He is currently not working because his work has no work so we are getting on unenployment, but we are having trouble witht that. we have a baby and i would really appreicate it if anyone could give me some advice on how to get out of debt.

I am new to the blog and I have a qustion. I am trying to get copies of my credit reports but I can only find the address to Equifax. Esperian and Equifax have an online request form, but I am hesitant about the personal information online thing. Transunion has a form which appears to be through a third party that can be used to request all three reports. How do I safely request my reports?

If you want your reports you can get them at for free…. 3 free a year.. 1 per agency. you can purchase your score thru these sights but it might be cheaper if you want all three scores at once to go thru! Good luck. hope this helps some!!! I’m trying to get myself on track for 2008 and one of the suggestions I heard was to join an online community, so here I am. Here’s my little situation just to get me started: lots of credit card debt (must I give the amount? Let’s say it’s around 15k); just bought a house in March 07 and the mortgage takes up 66% of my income; husband out of work, somewhat by choice, and that’s probably an issue for yet another group.

So I am going to my credit card to pay for groceries and gas, can barely pay minimum payments, and oh yes, my husband’s student loan payments kick in completely in January, to the tune of an additional $275 a month. I know! It’s ridiculous! All I can say is: southern California real estate prices. There were several reasons we ended up buying a house, and of course, I thought my spouse would be working at some point to help out with the expenses. I’m hopeful that will happen very soon.

Thanks for the tip on student loans. In addition to that, my overall plan for ’08 is to pay down debt gradually, starting with anything at all over the minimum payments and then work the amount up; build up savings gradually; and decrease our dependence on credit cards. Because of the house (and our relatively low income!) I’m anticipating a significant tax refund, which will be split equally between savings and debt payoff.

Would you possibly have room for another reliable roommate?


How big is your house? Would you possibly have room for another reliable roommate? This could make paying off the credit card easier and faster. Also, try calling the Juniper Bank – speak to a manager right away and see what they can do to lower that interest rate. If they won’t budge, go to your regular bank where you are a valued customer and see if they can give a personal loan at a better interest rate. Pay it off as fast as possible and stop using credit cards. My firm belief is that where there is will, there is way.

I found out the hard way myself that it’s far easier and faster to save up for an item like a computer… than paying back a creditor. I thought: “I need 1000 dollar loan with bad credit” and visited website. They approved my loan application almost instantly! You actually then are earning interest toward the item by using a savings account. My first computer was bought on a credit card, years ago. I snowballed on me – I went completely off the deep end using credit cards and ended with almost $14,000.00 in CC debt alone. It took 4 years to pay it all off. My second new computer, was bought about 4 years ago and I saved up for it for only a year, at the most. That was definately easier.

Your situation can have a happy ending- don’t let Juniper bank kill your digestive and coronary system – it’s not worth it. Did you try to contact the credit card company when the check bounced? Usually they will work with you if you have never been late. They can waive the late fee and such. Since you pay on time and always over they may work something out with you. Or you can pull the “Such and Such Credit Cards said that they could give me a better rate of whatever percent or less of what you had before. I am looking to see if you can match that before I transfer the card to them.” My mother has been able to do that many times and since your credit is not shot like the rest of us, it may work for you.

I have no more room for roommates, so that’s not an option… I am researching on what I could get for a Martin guitar I have had since 1974, and will hopefully sell that to get a chunk paid off of Juniper. I did call them and await their ‘card services’ people to call back. They’re open 8-5 EST and I’m on the West coast.

I’m happy you can save up and buy stuff by saving for it, but when you’re on SSI, try it then. It’s very very hard to do so when your income gets a kick in the chops like mine did with a death in the family. I’d have done it that way if it were at all possible, and am indeed not seeking anymore credit cards at all. That’s why I was tempted to just have them sell it off to a collector. I don’t plan on any more credit cards at all….ever!

You are lucky in a way, with dad’s card on top of my debts I owed $40,000.00 and am now at about $12,000.00 to pay off on all cards total, as some were ‘settled’ down for mainly Dad’s card. They are on the way down, and as I said, Machol & Johannes’ debt collectors will be done with by about June/July, 2008. Then that $300.00 a month can go to a card I have had home repairs done on and it too will be gone quickly.

I will not be getting any more cards. That’s why I don’t try to get a new card to put the Juniper account on. That would p*** them off if I did that <G> But I don’t want any more credit cards. It is not worth it. My Bank would approve a 30 year fixed loan, but I don’t want to put my home on the line and also, when I figure it out, I’d be paying back 3 TIMES what I currently owe over the next 30 years. At fifty years of age, I don’t want to do this.

When I get this debt off my back, then you’re right, I could save up for things more easily, and plan to do it that way. We’ll see what this Juniper gang says and then go from there. I’m just so sad they see not the good, but only the one bad that happened in 2 years of being with them.

This is a real pickle indeed.

This is a real pickle indeed.

While it is good that decided to invest your money, you chose the vehicle for that. But that is hindsight, and that is 20/20.

It is time to look to the future. You need to concentrate on getting out of debt. A chpater 13 would do better for you that settlign the debts. You’ll actually pay a little less for a settlement after you figure in the attorney fees, etc with BK. So I would suggest that you get rid of the credit cards first, through debt settlement, then use that extra cash for a savings and paying down the mortgage. Debt settlement will have a negative impact on your credit score (but I hate credit anyway) but it can be easily repaired…and quickly, depending on you.

When you get rid of the credit cards, you should have a lot of discretionary income. take half of that and use it to pay down the mortgage, and the other half into to safe and proven investments…like life insurance, etc. This should dig you out of the whole. It won’t make you welathly or anything like that but it will bring you to step 0 again. What you do at that point will up to you. I hope that helps. Jae is right about one thing. Pay off or settle the credit cards while you have some income to work with. However, I would recommend something more liquid than life insurance to invest any savings you may accumulate.

A short term CD or money market account will allow you the liquidity you may need if your job doesn’t pan out or you need access to your funds quickly. Also, don’t try any quick money schemes to
bail yourself out. Many people get desperate and go for a quick fix. The real fix is to spend less than you earn and pay regularly on your debt until it’s paid off. Then, learn from your experience. But unfortunately not to debt. I live on a small part time job, and I get SSI for a visual impairment from premature birth. I live in California. My home is my parent’s and paid for and left to me, so I haven’t a mortgage or anything Thank G-D! Every month I pay over minimums on my credit card debts, and most of them are on the way down.

But today, I got a letter from Juniper Bank about a Master Card I had opened in Christmas 2004 (I cut up the original card as I only wanted a computer and that’s it. Used my $2,000.00 limit and bought the box, cutting the card up after that) that because of January, 2006 when I had a problem and ‘insufficiant funds’ my e-payment was returned and I was then technically late…. I Made up for it after that and again always paid over minimums! For that one time, they are raising my APR to 27.99% from the former 17.6%.

I have a mind to go on ‘strike’ and pay them nothing. Let them send it to a collector. I don’t want anymore credit cards or the like, so what it would do to my credit rating that hasn’t already been done anyway…. All I know is I am getting so fed up, I try to get more hours at work, I got a roommate, I have budgeted and strived, and at least a positive, my credit rating is at 680 instead of the previous 520… All my other bills are going down and seeing the lesser balances every month is a good feeling.

When my dad died in 2001 it threw my income to less than $800.00 a month and Even with the P/T job and SSI I am just this side of $1,100.00 a month. Now, $300.00 of this goes to a collector for one of my dad’s cards with which MY name was also on it, so…. anyway I have 1 1/2 more years of that debt and it is gone. I dunno, I had to vent somewhere, as I don’t know what else to do that I am not already doing. I feel like such a loser!

I just looked at the letter and bawled. All that work, and for 1 (One!) late pay, they are socking it to me. Has anyone got these companies to back down and relent? at least going back to a lower rate? I can’t stand it how I see a positive on my other accounts and these guys at Juniper can be so awful.


Local Housing Market For Mobile Homes Has Crashed

Mobile homesHello all,

I’ve been reading a few weeks, and wanted to intro myself a bit.

About 4 years ago, I bought a mobile home with a partner from what turned out to be a real rip-off company. We had planned to basically “rent” from each other for several years, and then sell when we both reached a time for moving out of state. The plan was to use her income and mine to keep up the home and pay expenses.

It took a few years, but when I was finally able to refinance with a regular bank, my home-partner was back in school for a master’s and not working, so I refinanced in my name only. You can no doubt guess what happened then – after she was done with school she bailed on me (and also moved out) and I have only verbals that she ever agreed to be part of this.

On top of that, the local housing market for mobile homes has crashed, and though I owe about $32,000 still on the home, I’m told by realtors that unless I can sell for $12,000 or so, it’s not even worth putting on the market. An additional problem is that since it’s only MY income maintaining the place, frankly it’s falling apart. Last I estimated, it would take at least $5,000 – and perhaps as much as $10,000 – to make even basic repairs such as reroofing and so on.

I’m also paying 2 credit cards (one $4,000, the other $3,000), the balances of which grow as I have to make small emergency repairs (for instance, the hot water heater went out last month).

I spoke briefly with a few bankruptcy attorneys, and they told me under the new bankruptcy laws, I “make too much” to file anything but Chapter 13. I’m not sure if Chapter 13 would do me any good anyway, but I guess it would at least prevent the bank from sueing me for the balance of the mobile home (since I’m told mobile homes aren’t treated like stick-homes legally, and if for some reason I can’t or won’t keep up my payments on the home, they will foreclose on it, sell it for a few thousand dollars just to get it off their books, and then come after me for the difference – including wage garnishment).

I’m really feeling stuck! If I try to stick it out and pay down the $20,000 to sell it, by then it will be such garbage from lack of major repairs that it may be unlivable and unsellable. I’m making my payments now, but if I borrow $5000-10000 to make repairs, I won’t be able to make payments anymore. If I file Chapter 13, I’m not sure what will happen, actually. The job I have now is a union job paying WAY WAY over the wage-market for the work I do – meaning that if at any time I get laid off, assuming I CAN find another job, my income will drop by half – at which point I also won’t be able to make any payments.

Any ideas? I’m feeling really stuck, like there’s nothing I can do except wait for one of several axes to drop. And that’s how I’ve been living for about 2 years now.



Has Anyone Had Their Home Foreclosed?

I am kind of new to the blog and haven’t posted until now. Has anyone in the blog had their home foreclosed and what was the effect it had on your life afterwards? My house may be sold in foreclosure soon.

It sounds kind of rough going right now, to say the least. I don’t fully understand your situation, but if you are about to loose the house then you might want to look at bankruptcy as a solution. This will save the house from the foreclosure. As to your other debts, if you could lets us know a little more of the situation then we may be able to give you more learned solutions. In just about every city on the US there are investors who specialize in buying pre-foreclosure homes. Look in the local newspaper or weekly classifieds paper for those “WE BUY HOUSES!!” ads…then call 5-6 of them. Let them know they are competing to buy your house. As long as what you owe is less than the retail value of your house, you’ll find a cash buyer and avoid the foreclosure.

Unfortunately I think I waited too long. It is supposed to take place on Monday. thanks for the info though. The biggest problem i have is my mortgage. i am catching up on the other bills. I was laid off earlier this year. I got my job back but the number of hours i work varies-previously i hadnt gotten many hours. It seems to be picking up now. I would like to know if anyone in this blog had their home foreclosed and what was it like for them afterward.


Help! I’m Carrying 20K in Credit Card Debt

credit card debt

Help! Im carrying 20K in credit card debt, have no reserves, and got laid off this week. I have COPD(chronic pulmonary lung disease),Asthma,Allergies and Sleep Apnea! A good portion of the debt is for pharmacy and doctors appts to treat the symtoms monthly, and then the rest is other charges…What to do? Any suggestions?

That debt is extremely worrysome, but your health issues seem a lot more important. Is this lay- off temporary? Or can you start looking for another job immediately in your field or career. The health and the job may be your number one priority now. Are there some of your less seious symptoms of the health problems that can be treated holistically and more cost effectively than standard western medicine? It’s not always the best. I can only assume you did not have a health care plan, either that or it was the complete pits.

Do your health problems keep you from functioning at a normal level at work and your everyday life? If so maybe you could be eligible for some disability benefits through your state and get some help for your health care bills. It may be worth looking into. I don’t know if you’ve done that yet. I’m not a doctor, so I don’t know how all of your health issues are viewed as to whether they are debilitating enough for you not function normally.

Lest anyone think there is help for the disabled in this country besides Social Security Disability (you must have credits of insurance that are recent), Medicare, and SSI (Supplemental Security Income), which is welfare for the disabled, there is none. A few pharmaceutical companies offer help if you are extremely poor. No, welcome to the U.S.A. It must be a character fault if you are ill. Since it is your fault, I don’t care if you starve and have no retirement funds. I have SSA. I have private disability insurance. I am in bad shape! I would like to know how the European Union deals with this. I used to hear similar stories but I felt ‘hey, it probably won’t happen to me. I better worry about marrying!’

Ha-Ha! You may be right. You may be wrong. What do you suggest? What details would you need to know whether it is better to file for bankruptcy protection or negotiate which course to settle debt? I would need more facts. I think, though, that financial stuff is personal. Different people may rationally choose different outcomes depending on their personalities. I can do things do today I could not have considered when I was quite ill. Also, perhaps we should brief state our background. Defaulted, bankrupt, negotiated.  Just to put in my 2 cents (that’s all I have these days!) I’m divorcing my dead beat husband, get no child support, have a below cost of living income,  health issues and still don’t want to file bankruptcy – have you looked at all other options!?

Actually this is the first time i try to get help from internet regarding my debts and the reson is that im so desespered of get out of my debt and im risking to be in prison if i did not pay my credit cards debt.
Kindly can i get some advice how to pay my ccs. i have 3 cards and i spend all of them and imin debt of 27000$ without interest rate. I am unable to pay my credit cards min. monthly pmt. I will continue to pay my mortgage, but can’t keep up. Today I am 30day past on one credit card and falling quickly on the other.

Just got my chapter 7 release from the bankruptcy court. Of course every case is different, so I don’t advise it for everyone, but it’s the best thing I ever did. Best to check with an attorney for a free consultation. The banks and collections people will never advise you of what’s possible, they just want to make sure they squeeze everything they can out of you so you need your own advocate.


I Do Something Similar And It Really Does Make A Difference.

differenceI do something similar, and it really does make a difference.

I pay all my bills twice a month, as soon as I get paid. I divide all my payments in half (plus add $10 extra to each CC minimum) and pay that amount. The card I’m working to pay off first gets every other spare cent. By paying twice a month, my debt has really started to decrease much faster than before.

I highly recommend this practice–it does reduce the daily balance, so it helps drop your balances faster. It may take a little juggling to get it set up at first, but it’s worth it in the long run.

If you, like many people, are just having a hard time paying your bills at all, start with the minimums. It’s all about doing what you can to get rid of this albatross we’re all carrying.

If you are concerned about the little bit of interest you save this way, why not simply pay that extra $20.00 with your regular payment and save even more.

Hopefully, you would not wait until the due date to make your payment. Many things can happen, including unscrupulous credit card providers CLAIMING that they did not receive your payment in time, and therefor costing you a late payment charge and extra interest.

I’ve never tried that since I have enough problems figuring out how to pay at all. I have a horrible time bugeting. We are fairly backwards using about half of our income on our mortgage. I’ve paid my credit cards early sometimes and then they want to be paid again because they consider that to be an extra payment on the balance due. Then I need to scrap up EXTRA money on top of what I’ve already paid. Does that make sense?

Maybe you do something differently? I posted this a while back but will re-post it.

This has been my stradegy for the last year and it is working wonders – My credit score is a solid 750 now and my debt is really melting fast. So hear it goes .

I pay my credit cards 4 times a month- it is intersting to manage but you will see a benifit the very first month and every month thereafter.

You will save a ton of money in to be charged interest and qucikly beat down your principal.

Any questions feel free to ask.