I posted here asking for help with around $6,000 in credit card debt, all passed off to debt collectors, and two who were threatening legal action.
In the last week, I called all of them and was able to get everyone to settle for less and let me set up a payment plan.
I paid off 1 debt that was for a small sum already, made a $212 payment on one debt I settled for $687. I was able to settle one $2000 debt for $1,200 to avoid legal action, and set up a payment plan, today I made my first payment of $600. My largest debt was $3414. They settled for $2400. Next week I make the first of 2 payments of $1200 on that. I will be out of credit card debt by January 11th.
Here’s what I learned.
Have an emergency fund. $1,000. Trust me.
Don’t ignore the calls and the letters. I ignored them for a very long time. And it landed me almost getting sued. Call them back. Be nice. Work with them. They want their money and no one thought twice about letting me settle for a lower amount.
What I learned about my budget.
I don’t need 2 coffees a day. I don’t need to uber to friends houses when I live in one of the most transit friendly city’s in the country. I don’t need to mindlessly shop. I need to pay my rent, my bills and make sure my cats are healthy and fed. Spending money for fun is great, but I haven’t been miserable without it. I’ve been doing okay and I’ve saved every penny to pay off debt.
I sold things I didn’t need and made an extra $300. I left my debit card at home when I was at work and didn’t use it to buy an extra coffee or snack on my breaks.
All in all, I wish I had never owed the money and had never let it get this bad. But I learned a lot about my spending habits, my budget and myself. And I learned an important life lesson to never let this happen again.
Submitted November 19, 2018 at 04:19PM by financehelp10276 https://ift.tt/2Kh17Z4