Expert: David - 4/8/2009

Question
I got a credit card when I was in college (2006) and was not able to pay it off.  I lost my job last year, had a baby and now is being sued by this credit card company.  I am due in court tomorrow and am afraid they will take the only asset I have which is my car.  I tried to make a settlement with their lawyers of 500.00 with a 30.00 monthly payment on the rest, but they would not go for it.  Can you please give me some kind of advice on what I can do at this point?

Answer
Jackie,

Credit Cards are unsecured debt.  They can not take your car.  It sounds like they are suing you for judgement.  This would be the first step to wage garnishment.

If in your position I would not go to court. (this is only if the suit is for judgement) You are going to lose wether you are present or not.

I would take the $500 and put it in a jar under the bed and start putting every extra dime you can get with it.  You'll be able to negotiate a payoff of the debt much easier with a lump sum than with payments...30-60% or so.

Once you have done that visit www.financialscoringsolutions.com and register for us to help you raise your credit score.  You'll be moving forward in no time.

David