Determination is KEY! Just over 2 weeks ago I had an accumulated debt of over 18 grand. Most of it I accumulated through retail credit cards and small banking loans I had so easily been given right after my 18th birthday, like any typical teenager with thousands of dollars in "free" money at my disposal I went shopping! Of course, I had everything figured out first, I mean I was working tons of overtime at my job that paid $8.75 per hour, and all the disclosure forms stated that if I paid the balances off in 6 months I wouldn't have to pay any interest. WOW. what an awesome deal I thought, and hey even if I don't pay it off in that amount of time what's a little bit of interest going to hurt right? So, I start swiping, now my apartment that I just signed a 2-year lease on, has a brand new 65'' flat screen, PS3, laptop, I pod (new touch screen version of course) leather sofas, fancy dining set, the whole 9. And it gets better, Zale's even pre-approves me for 3.5k as well, so guess who has a brand new overpriced 10k gold necklace? Anyway, I'm sure you get the picture. I was 18 and living like a king. I worked hard and didn't hesitate to enjoy the fruits of my labor. Unfortunately, the fruits my labor was producing was more like rotten blueberries, I however was eating on Yubari melons! Then that little burden we so often forget about showed its face, you know that thing...LIFE. Well it happened and with it, all that lovely overtime was gone. But like I said I had it all figured out from the beginning, all I had to do is get a second job bussing tables or mowing lawns on the weekends and bingo problem solved. Too bad a week later the job itself was gone, right alongside the overtime it brought me. And now I have nothing figured out and since I didn't have a single dollar in savings I knew I was in trouble. Reluctantly I found employment within the first week, unfortunately I wouldn't be expecting a check for at least 2-3 weeks. And the checklist started, who to pay. And who to delay. Ultimately life's necessities came first and everything else was on delay, until eventual it was "oh well ill pay it off later when I'm doing good again". And off to collections my accounts went, along with the newly acquired cash cards I planned on using to get me out of the jam in the first place. So here I am 19 years old with tons of bills, no medical insurance an apartment with 12 months left on a lease and a part time job making minimum wage (DTI 90/10). My ship was sunk and I was submerged in debt.
Burdened by the thought that unless I filed bankruptcy, came up with $18k or waited a decade. I would never have the option to purchase a home, buy a vehicle or take out a personal loan etc. So, I decided from here on out I would have to buy everything in life with my hard-earned pre-taxed cash. Fortunately, we mature, get wiser and for some of us we are unwilling to let life dictate our destiny. So almost one year ago I made a goal to save up 10k and use it to start a business, invest, put it in a cd, something, anything but I better be ready. I told myself I'd rather be prepared for an opportunity then have an opportunity and not be prepared. (FYI that was before read Rich Dad) I exceeded my goal and ended up with a little over 12k in cash savings.
Then, roughly 9 months ago REI education consumed me, I knew I had found my calling. So, I formed a new goal and told myself that within 5 years I will turn this 10k into a Million! However, to do so I knew I would need much more then 10k, and started meeting with lenders, of course leaving the office with the same advice "settle this debt and well talk" And that's exactly what I set out to do.
How I did it:
•Requested my free annual CR from all 3 bureaus and established a budget at 7k to settle the total debt. I put all judgments filed against me 1st, Retail collections & eviction 2nd and all medical collections last (since typically most lenders will not hold medical claims against you for funding approval)
•Make sure you study each report diligently. Noting: original balances & creditor. Current debt holder. Last report date and expected removal date. (that info will help with negotiations)
•I requested to always speak directly with a manager (remember the collectors only have so much room to negotiate) go to the source, typically there hard to reach, so call back every 10 minutes if you must, eventually you will be put through with the right person! Start your offer at 20%, explain to them your draining your entire saving just to do "what's right" and that your able to pay immediately, if they up the % but it’s still in your budget tell them you will have to call back once are able to save up the rest, if the account is old...they'll take your initial offer. If the collection is fairly new, call back later that day and tell them it’s a deal!
•Always request the proposed settlement in writing first via email or USPS
•Once you have confirmation in writing have your debit card handy and propose a slightly lower amount (depending on the age of the account of course) if you have them at 50% and requested the 20% find an excuse and offer say 30% inform them you have your debit card in hand if they bite great if not repeat the process of call back blah blah. FYI (they'll bite)
To sum this up if you are a good negotiator and are willing to stop at nothing to get what you want do the work yourself and avoid the attorneys, consolidators and other scammers. I assure you it is not difficult but will require tremendous effort. I am 25 years old and just beginning my REI journey I have no college background or unique skills, just pure determination. And with that after a mere 14 days of due diligence and complete persistence, I was able to relinquish myself of $18,675 of debt with only $5.5k. Once the bureaus are updated with the account satisfactions I will be on my way to obtaining over 6 figures in financing. And then the fun will begin!
IF YOU WANT IT BAD ENOUGH, GET IT!!!
