Credit counseling agency question

I have a question that someone can hopefully answer. I am working with a credit counseling agency, I have been with them since July 2004. I have been making the monthly payment to them but so far they are telling me “the CC companies haven’t responded to our proposals.” Should it take this long to receive a response from the CC companies? I recently checked my credit report and it shows the CCs have been receiving the payments. I’m just curious as to the length of time this should be taking. Thanks for any info.

I used to work for a credit card company and collected on the people that went through credit counseling. This is how things worked where I was at… Every day we would get proposals from the Cr Counseling that requested interest lowered or stopped, and proposed a reduced payment. I had a set guideline on interest and minimum payment amount. I checked the appropriate boxes and calculated the payments amount and accepted or declined them. Then the account had to be set up in the system and the proposal returned to the agency. Some days I would get 2 proposals, others would be 200. I was 1 of 4 people that worked the mail so you can imagine it took us a while to get it done. It just dpeends on their process.

Someone was asking about a settlement payment and only paying 65% or 45%. I am confused what does that mean. If you don’t pay on your debt or credit card and then ask to settle, you can settle for less? I need some advice as to what routes I can take to get myself solvent again. My job pay is taken up every month to pay all the bills leavinglittle for any of the irregular payments that happen like insurance payments or payments to have the propane filled, etc. I owe my own home, a single mother of 2, I am paying on a truck (that I use mostly for my hobby farm), a car and a large credit card bill.

I can no longer continue at this rate and need to make some changes. I have to high of a debt to asset ratio. I do have a retirement account for being a teacher but to take that out, I would lose half of what it is worth. Are there any feasible solutions out there without filing for bankruptcy or the like?

I originally was going to file bankruptcy and decided to try and pay off our debts the Dave Ramsey way. When I spoke with one of my creditor’s, I was told that if I was 90 days or less past due then I could possibly settle for 65% of the total debt. If I was more like 120 days past due, I could possibly settle for 45% of the debt.

I was not planning on not paying but it was suggested that since I might be in a position to settle in a few months that I could hold off paying. I will use what I would have put towards that debt to pay on my next smallest debt.

The most feasible solution is to sell those things which you can’t afford (truck for hobby farm and car with payment) and pay cash for cheaper versions of each. Then you can take the money you were sending to the bank every month for those vehicles and get rid of the consumer debt. It took more than a month to get yourself into this mess and it’ll take sacrifice and time to get out of it.

The real question is (if I may be so blunt) “How hard are you willing to work and how attached are you to the “stuff” that’s keeping you down?” If you gte focused for a short time and get rid of the luxuries you’ll be able to get through this and come out the other side better for it. Why “give-up” and file for bankruptcy when you can wade through this and win…there IS hope!

I hate to sound like a broken record or a Dave Ramsey commercial….but you REALLY need to check out www.daveramsey.com and listen to his radio show or archives on the web. If you need some info and direction he’s the man!