Discover Card has sent my account to a collections attorney. This attorney's office has sent me Court papers where I have 30 days to respond to. I called them again to try to explain our financial situation, and I offered to pay approx. $100/month. They have finally agreed to this amount. Prior to this recent call, Discover Card and now this attorneys office has only wanted payments of over $400 a month! So now they are not going to take me to court to garnish my wages, but they have increased my balance. She told me she would be sending me a letter to sign. I have the letter "AGREED JUDGMENT" with instructions to NOT DATE my signature. This seems fishy and the details behind it, I am not clear on. I am angery and frustrated about the amount of this debt since my original debt was less than $10K. Once it went to collections/attorney's office, I was told if I could pay it off or make payments in excess of $490/mth it would remain at $10,851.73 but obviously that was not something I was financially able to do since we are still struggling to pay our mortgage payments. Now the debt has jumped to $14,270.02!!!
My last payment was Feb 2010. At that time I paid $186.00 and the final balance on the July 2010 statement when it was "Charged-off" showed $9,451.00. I'm certain that prior to this balance it was much lower, but when I could not continue to make minimal payments and could not continue to pay on time, the interest rate jumped up to the high rate, and the fees is what brought this balance to be in the $9K range. I am interested to know what they balance was when I made the last "purchase"?
I have always been willing to make payments of around $100. The problem started when, I was being charged $300+/- in fees & interest, while struggling to make that $100 payment each month. How can I afford to pay $490? When my husbands pay was cut in half? So because I could not make those kind of payments, and they would not take what I offered ($100-$150), my debt has gone to $14,270.02 plus interest and costs!
My husbands work was cut in half and led to his company (GM) closing and he was unemployeed for a short period. We have tried to sell the house (currently on the market for 14 months now, with already having reduced by $70K and our realtor says if we reduce another $30K more, she is not certain we could sell at that amount!). We have been to credit counseling
at the bank in an attempt to reduce our mortgage payments (still no word on this and it's been since October 2010 that we started this with our bank).
I have less than 30 days to send these papers back, signed. I want to make payments. I want to stop my sleepless nights over this one issue. I just do not feel it is right to BE TAKEN TO THE CLEANERS over a debt that was minimal to start with.
My understanding is if I had a large lump of money, we could "Settle" and possibly reduce the debt but only after we make $150 plus interest for 24 months can we "Settle" according to Discover's Attorney.
The paper work states: "Discover has agreed to my payment proposal of $150 a month for 24 months and then I will pay the balance in full."
This debt of now $14,270.02 will continue to increase since there are additional interest and costs acruing..
I need to know what my rights are. I need to know the best way to handle this issue?