boy, when I started this blog, I called it gettting out of debt, now I need to rename it survival or something. I was strongarmed into agreeing to sell the house in court. I mean I agreed in court, it's not being sold in court. I think my divorce attorney advised me to agree to this because of all the credit card debt and the threat of bankrupcy. There's little or no equity left in the house. I have to start saving every penny in order to be able to rent a place. Maybe I can start looking now. I don't know how I'll be able to rent, though, without a good credit score and perhaps a bankrupcy.
We have 15 days to agree on a realtor. And then I guess we need to agree on a listing price. And we need to work with the bank on holding off on payments until the house is sold, if they are willing and able to do that.
The bank said the F word: Foreclosure
Our mortgage modification is at the end of the agreed-upon 3 months.
We met with the bank and with the next payment, the monthly payment goes back up to the actual payment. I think we're maybe a month or 2 behind. My estranged husband (we are in the middle of a divorce) basically told them he was not going to pay the mortgage anymore.
They told us we had two options: to enter into an agreement with a realtor to sell the house, or to begin foreclosure proceedings.
The woman was pretty evasive about what would actually happen: when I would ask her questions about both, she said things like, "that depends on you and if a payment is made," or "we'll need to present that to the loan committee."
They just want their money back, and who can blame them. And my husband just wants to walk away from the responsibility of a house. Me, I have no job and three kids and will have to go and live with relatives if we lose this house.
We met with the bank and with the next payment, the monthly payment goes back up to the actual payment. I think we're maybe a month or 2 behind. My estranged husband (we are in the middle of a divorce) basically told them he was not going to pay the mortgage anymore.
They told us we had two options: to enter into an agreement with a realtor to sell the house, or to begin foreclosure proceedings.
The woman was pretty evasive about what would actually happen: when I would ask her questions about both, she said things like, "that depends on you and if a payment is made," or "we'll need to present that to the loan committee."
They just want their money back, and who can blame them. And my husband just wants to walk away from the responsibility of a house. Me, I have no job and three kids and will have to go and live with relatives if we lose this house.
Again, thinking about Bankrupcy
I was talking to a friend the other day who told me about a friend of hers who is in a situation similar to mine....she is getting divorced, th house had been foreclosed on, and she has not bredit. The major difference between her an dme is that her children are older; her oldest is going off to collges and she can't help in any way financially. She is unableto cosigne for a student loan for her child.
My kids are 3, 6, and 8. It made me feel better about my situation. I had only bewen looking at trying to avoid bankrupcy, but then I thought about having a fresh start so when my kids are older I will be able to help them.
Another thing to consider.......
My kids are 3, 6, and 8. It made me feel better about my situation. I had only bewen looking at trying to avoid bankrupcy, but then I thought about having a fresh start so when my kids are older I will be able to help them.
Another thing to consider.......
Banrupcy or Credit Card hardship programs?
I've got all my credit cards either at zero or 2% and the total payments to under $500 per month. I called them all up and told them I wanted to do whatever was possible to avoid claiming bankupcy. Once I told them that I had been advised to claim bankrupcy, they were willing to work with me.
But then I talked with a friend whose husband is claiming bankrupcy and she told me that it's not 10 years that it stays with you, and that in a year you're in better shape than you are now. I hadn't looked at it that way. So then I started thinking about what I could do with that $500 per month. That would add up to $6000 in a year.
Maybe bankrupcy wouldn't be such a bad thing after all.
But then I talked with a friend whose husband is claiming bankrupcy and she told me that it's not 10 years that it stays with you, and that in a year you're in better shape than you are now. I hadn't looked at it that way. So then I started thinking about what I could do with that $500 per month. That would add up to $6000 in a year.
Maybe bankrupcy wouldn't be such a bad thing after all.
Modifiying your mortgage during financial hardship
If you are experiencing a financial hardship, such as a job loss or divorce, there are programs to help you modify your mortgage and avoid bankrupcy and/or foreclosure. President Barack Obama's financial stimulus package included incentives to banks to help people who are experiencing financial hardships to be able to stay in their homes.
If you are unable to pay your mortgage, be proactive and contact your bank about mortgage modification right away. It's easier for the bank to help you if you are not already behind in your payments. Explain the hardship and ask what you'll need to do to get help with your payment. Explain that you are trying to avoid foreclosure and bankrupcy.
Most likely, your bank will want you to put your request in writing. Find out to whom the letter should be addressed. Be sure to include all relevant information, such as your name (and cosigner, if there is one), address, account number and phone number. Explain your hardship and that you want to keep up on your obligations and stay in your house. Ask the appropriate person at the bank to contact you right away.
You will probably need to meet with someone at the bank after they've reviewed all your information. At that point, they may give you an answer or tell you will hear from them at another time. Sometimes, depending on your income, they will be able to restructure your loan, either with a lower interest rate or longer period of time to lower your payment. They may also give you a temporary solution while you try to get back on your feet; such as a few months with no interest and no late fees.
An ordeal with citibank
I had quite an ordeal with Citibank. I was so excited that a very nice woman had put one of my cards on a hardship program which was no interest, and automatic payments taken out. The payment was six days late at the time I spoke on the phone to her, which, as I understand, makes a difference in what they are able to do for you: if your account is current or not.
I was quite happy with the arragnement. I told her I was going to call back later to do the same thing with my other 2 citibank cards, also at 29.99% (and never more than a day or 2 late).
However, when I called, there was no record of the hour-long conversation I had had with this nice woman and the plan she (didn't) put me on. I just had a late account, now even later. Because she didn't process the automatic $80 payment that she was supposed to on the day I spoke with her.
Citibank is definately the worst!!! I am, however, going to keep calling them until I get something resolved. I cannot continue to pay 29.99 pct on credit cards..I will be forced into bankrupcy and that is not what I want!!
I was quite happy with the arragnement. I told her I was going to call back later to do the same thing with my other 2 citibank cards, also at 29.99% (and never more than a day or 2 late).
However, when I called, there was no record of the hour-long conversation I had had with this nice woman and the plan she (didn't) put me on. I just had a late account, now even later. Because she didn't process the automatic $80 payment that she was supposed to on the day I spoke with her.
Citibank is definately the worst!!! I am, however, going to keep calling them until I get something resolved. I cannot continue to pay 29.99 pct on credit cards..I will be forced into bankrupcy and that is not what I want!!
Citibank's credit card Hardship program
As a alternative to bankrupcy, I contacted Citibank via email and requested they lower the exorborant 29.99 pct interest rate so that I would be able to honor my debts through divorce and unemployment. Bankrupcy has become a real option or us, together and individually, but I thought that if Citibank could do what American Express has done for me with its credit card hardship program (zero pct for a year) I might be able to avoid the dreaded B word.
More to come....3 year old is ready for bed......
More to come....3 year old is ready for bed......
credit score of 711
I received a debt consolidation solicitation in the mail and it said my credit score was 711...I think that's good. I just got a call from Macy's telling me that my payment was late and it was reported to the credit bureau. How does one payment affect your credit rating?
I have so much trouble with Macy's because there's two accounts, Macy's and Macy's visa, but it's the same card. Two different account numbers. I get them confused.
I have so much trouble with Macy's because there's two accounts, Macy's and Macy's visa, but it's the same card. Two different account numbers. I get them confused.
Credit card hardship programs
I got the idea when I read about financial incentives for mortgages to help people having a "hardship" (job loss); this is part of Obama's plan. I called the bank that holds our mortgage and wrote them the letter they requested, including documentation such as unemployment statement and prior years taxes.
After meeting with 2 bigwigs at the small, local credit union, they offered: three months of no interest payments and they waived the late fees during that period. This reduced our monthly payment by about $500. At the end of the 3-month period, we are supposed to meet with them again and they'll see if we qualify for some sort of permanent loan modification. (When we met with them, they said we didn't have the income to qualify for any permanent changes.)
So anyway, I then took this quest to my credit cards (DH had to take care of his own). But we both were able to secure some assistance: my American Express gave me zero percent for six monthes, which is a big help because then the entire payment will be going toward reducing the credit card balance.
After meeting with 2 bigwigs at the small, local credit union, they offered: three months of no interest payments and they waived the late fees during that period. This reduced our monthly payment by about $500. At the end of the 3-month period, we are supposed to meet with them again and they'll see if we qualify for some sort of permanent loan modification. (When we met with them, they said we didn't have the income to qualify for any permanent changes.)
So anyway, I then took this quest to my credit cards (DH had to take care of his own). But we both were able to secure some assistance: my American Express gave me zero percent for six monthes, which is a big help because then the entire payment will be going toward reducing the credit card balance.
Debt Management Company?
I was reserching some debt management companies to try and see if I could get some of my balances reduced, given that neither my soon to be ex-husband or I have a job, and I didn't really find anything definitive regarding debt management or debt settlement companies who will help setttle or reduce credit card debt.
I did, however, find a list on the FTC website of debt management companies that were approved. I'll keep looking. If you want to be updated on my progress, subscribe to the blog so you can get updates.
I did, however, find a list on the FTC website of debt management companies that were approved. I'll keep looking. If you want to be updated on my progress, subscribe to the blog so you can get updates.
It's complicated
Life throws a curveball at you every now and again. And sometimes your entire life implodes into itself; all at once, rippling out unceasingly.
That's kind of where I am right because my husband has decided he doesn't want to be married anymore and then lost his job a week later.
So now we're two seperated people living in the same house with 3 kids and 0 jobs. Enough of my pity pot.
It's just that my financial plan has had to change. Now my goal is to seperate the finances and find a new place to live. Hopefully, I will be able to accomplish this while still maintaining my credit so I can eventually be financially solid again.
That's kind of where I am right because my husband has decided he doesn't want to be married anymore and then lost his job a week later.
So now we're two seperated people living in the same house with 3 kids and 0 jobs. Enough of my pity pot.
It's just that my financial plan has had to change. Now my goal is to seperate the finances and find a new place to live. Hopefully, I will be able to accomplish this while still maintaining my credit so I can eventually be financially solid again.
I raised a red flag by trying to transfer a balance to a lower rate.
Chase offered a low rate for 2 years, and I requested the $5K I had left to move onto the heathen Blue card from American Express.
First, their fraud department called to verify.
Then they sent a letter that they were refusing the transfer and lowering my credit limit to my current balance. (a reduction of 5K-plus!)
So, now I have another offer from Bank of America for an under 10 rate, but I'm afraid to try to make a move out of fear that the same thing will happen.
I am trying to stay positive.....someday I will pay off my credit cards....
Chase offered a low rate for 2 years, and I requested the $5K I had left to move onto the heathen Blue card from American Express.
First, their fraud department called to verify.
Then they sent a letter that they were refusing the transfer and lowering my credit limit to my current balance. (a reduction of 5K-plus!)
So, now I have another offer from Bank of America for an under 10 rate, but I'm afraid to try to make a move out of fear that the same thing will happen.
I am trying to stay positive.....someday I will pay off my credit cards....
bank of america doesn't want to give me a special rate on a balance transfer....
for a 3% fee, my new bank of america upromise card will let me transfer for my normal 9% rate....disappointing but better than the astronomical 27% on my amex blue......
here's the fineprint......
here's the fineprint......
The Annual Percentage Rate (APR) for this Balance Transfer is a variable rate; as of 03/31/2009 the APR is 9.24%. In addition, we may increase the APRs on your account up to the Default Rate without giving you notice. The variable Default Rate is currently 27.24%.
interesting.....
American Express blue..the worst
I hope they can't find out who I am from this blog, because AMEX is the worse. My Amex Blue credit card is the most unforgiving of all I have (and I have quite a few). The American Express Blue people raised my interest rate from 9% to 27% when my payment was one day late.
Both my husband and I have one of these American Express blue cards, and guess what? they're both at 27% now. Obviously, these are on the top of my list to pay off.
I recently got a Bank of American card and so far, so good. The other one that I havn't had a problem with is Capital One. They seem to always have balance transfers available with no transfer fee, not a zero rate, but a relatively low one. Ah, I could make a full-time career out of my credit card interest rates.
Please let me know about your experiences with your cards and interest rate hikes.
It's scary what I keep hearing about what the credit card companies are doing: raising rates and fees and cutting your credit lines. Has this happened to you?
Both my husband and I have one of these American Express blue cards, and guess what? they're both at 27% now. Obviously, these are on the top of my list to pay off.
I recently got a Bank of American card and so far, so good. The other one that I havn't had a problem with is Capital One. They seem to always have balance transfers available with no transfer fee, not a zero rate, but a relatively low one. Ah, I could make a full-time career out of my credit card interest rates.
Please let me know about your experiences with your cards and interest rate hikes.
It's scary what I keep hearing about what the credit card companies are doing: raising rates and fees and cutting your credit lines. Has this happened to you?
getting back my credit card "teaser rate"
In December, I transferred a pretty good balance onto an existing citibank card, which offered a 0% for 6 months with a 3% transaction fee.
The payment due date was on Christmas, so suprise, suprise, it posted a few days late.
I had transferred all I could for the 0% rate, so there was nothing available on the card at all. THE $39 late fee put me over my limit, which resulted in an over-limit fee, and the interest rate jumping from 0 to 23%!!
So, I emailed customer service, explaining to them that I tranferred the balance in order to prepare for difficult and fiancial times and to maintain my good credit rating. I spelled out what I wanted: credit for the late and over-limit fees and I wanted the 0% back.
As they say, ask and you shall receive. The fees they were able to credit that same day, but to get the 0 rate I had to wait for a letter in the mail, which came about 10 days later.
Given the current economic climate, companies are willing to work with people to avoid defaulting on debts. Don't be afraid to ask for a lower rate, different due date, or lower payment if that will help your situation.
The payment due date was on Christmas, so suprise, suprise, it posted a few days late.
I had transferred all I could for the 0% rate, so there was nothing available on the card at all. THE $39 late fee put me over my limit, which resulted in an over-limit fee, and the interest rate jumping from 0 to 23%!!
So, I emailed customer service, explaining to them that I tranferred the balance in order to prepare for difficult and fiancial times and to maintain my good credit rating. I spelled out what I wanted: credit for the late and over-limit fees and I wanted the 0% back.
As they say, ask and you shall receive. The fees they were able to credit that same day, but to get the 0 rate I had to wait for a letter in the mail, which came about 10 days later.
Given the current economic climate, companies are willing to work with people to avoid defaulting on debts. Don't be afraid to ask for a lower rate, different due date, or lower payment if that will help your situation.
I stopped using my dryer
My electric bill was close to $400 this month. We have electric hot water, which is very costly, and it has been very cold lately here in southeastern Massachusetts.
I looked back on the usage and last January's bill was the next highest, though not as high as this one.
So, I asked my husband to make me an indoor clothesline, and have stopped using the dryer. My basement is fairly dry this time of year when the heat is on, so there's no problem with a musty smell. We also have a dehumidifier. I'm actually quite suprised at how well things are drying.
I can't wait to see next month's electric bill to see if it made a difference!
I looked back on the usage and last January's bill was the next highest, though not as high as this one.
So, I asked my husband to make me an indoor clothesline, and have stopped using the dryer. My basement is fairly dry this time of year when the heat is on, so there's no problem with a musty smell. We also have a dehumidifier. I'm actually quite suprised at how well things are drying.
I can't wait to see next month's electric bill to see if it made a difference!
more about comcast
Now my debt blog is becoming a Comcast blog. This morning, I received a phone call in response to my email to Rick Germano at Comcast.
I had high hopes that the woman who was calling from the executive offices could make up to me all I had been through with comcast the previous week.
Instead, she offered nothing, except that if I added HBO to my service, I could save money by not ordering movies.
Unbelievable!!!
If this is the best they have to offer, we're in trouble!
I started looking into sattelite tv, but didn't get very far. Does anyone have any advice?
I had high hopes that the woman who was calling from the executive offices could make up to me all I had been through with comcast the previous week.
Instead, she offered nothing, except that if I added HBO to my service, I could save money by not ordering movies.
Unbelievable!!!
If this is the best they have to offer, we're in trouble!
I started looking into sattelite tv, but didn't get very far. Does anyone have any advice?
Cable TV?
Recently I read an article--I don't remember where--about saving money that asked, "Do you really need Cable TV?"
This inspired me to call Comcast to see if I could reduce my bill, which is about $110 per month if we don't buy any movies. (I have put a block on buying movies so the kids can't do it...we learned the hard way that they didn't understand that some of the on-demand content was free and that some of it wasn't.)
The woman suggested a different package which would give me the kids channels and the necessities like The Weather Channel and CNN Headline News (can't miss Nancy Grace!), for about $40 less per month. We booked an appoinment two days later for a technician to come out to put a filter on the pole.
He came, he installed, he left. When my daughter got home from school, she wanted to watch TV and that's when we found out that something wasn't right....I had only basic cable, nothing else.
Long story short, I spoke to 13 -- yes, 13 -- people at Comcast that day. Apparently, the package that I had been sold was not available in my area, but it took all day to not only find this out, but to make sure that the technician came back that day. (They wanted me to wait until the following week.)
The technician did come back and fix, but I lost an entire day trying to fix the problem and dealing with so so many customer service people who didn't know or didn't care. One guy even told me that he owned Comcast when I asked to speak to his boss. When I told him to let me talk to someone else, he said, "OK, I'll put you back in the queue," so this must be something that happens all the time.
I did send an email to Comcast's VP of Customer Care, Rick Germano, though I havn't heard back from him yet.
So...I havn't been able to reduce the cable bill yet. I'm going to look into Sattelite, because everyone says it is so much cheaper. We just got an HD TV for Christmas, so we need to have HD and both Comcast and Dish Network (or is it Direct TV) claim to have more HD than the other. I think I need to make it my business to find out for sure and get the best value.
This inspired me to call Comcast to see if I could reduce my bill, which is about $110 per month if we don't buy any movies. (I have put a block on buying movies so the kids can't do it...we learned the hard way that they didn't understand that some of the on-demand content was free and that some of it wasn't.)
The woman suggested a different package which would give me the kids channels and the necessities like The Weather Channel and CNN Headline News (can't miss Nancy Grace!), for about $40 less per month. We booked an appoinment two days later for a technician to come out to put a filter on the pole.
He came, he installed, he left. When my daughter got home from school, she wanted to watch TV and that's when we found out that something wasn't right....I had only basic cable, nothing else.
Long story short, I spoke to 13 -- yes, 13 -- people at Comcast that day. Apparently, the package that I had been sold was not available in my area, but it took all day to not only find this out, but to make sure that the technician came back that day. (They wanted me to wait until the following week.)
The technician did come back and fix, but I lost an entire day trying to fix the problem and dealing with so so many customer service people who didn't know or didn't care. One guy even told me that he owned Comcast when I asked to speak to his boss. When I told him to let me talk to someone else, he said, "OK, I'll put you back in the queue," so this must be something that happens all the time.
I did send an email to Comcast's VP of Customer Care, Rick Germano, though I havn't heard back from him yet.
So...I havn't been able to reduce the cable bill yet. I'm going to look into Sattelite, because everyone says it is so much cheaper. We just got an HD TV for Christmas, so we need to have HD and both Comcast and Dish Network (or is it Direct TV) claim to have more HD than the other. I think I need to make it my business to find out for sure and get the best value.
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