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All of my credit cards have been charged off, what does this mean?
I owe about 5,000 in credit card debt. All my cards are charged off according to my credit check by TransUnion, I am wanting to pay back what i owe when i can. I just found out that all my cards are now in collections. I am trying to work with the collections people on getting the balances paid off. But they are wanting the full balance paid, but I'm not able to do that. I have a car payment and a 3 year old son to support. I own my own trailer house and just pay lot rent. I am gettin worried, can they take my furniture or my house? I am wanting to make payment to each one of my credit cards, but i can only pay one at a time. I can only afford to send them 50-100 a month. Please help me?

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First of all, don't let them buffalo you. Collection agencies can be terrible bullies, and although federal law forbids them to lie to you they can tell you the "truth" in ways that are both misleading and high pressure.

That the original credit card companies have charged off your debt means that they consider it uncollectible. They have now sold your debt for pennies on the dollar to people whose only business is to try to squeeze something out of you.

This is unsecured debt. They almost certainly cannot take any of your possessions (certainly not your house). If they sue you and win in court, they may be able to garnish your wages or something like that. But it's highly unlikely anybody's going to bother to sue you for a bunch of small debts. (I'm not a lawyer or a financial advisor; if you're really worried about what they can do, do some research on your state laws and/or consult with a pro!)

To take some of the pressure off, you can simply ask the collection agencies to stop contacting you. Then you can work on the bad debt in your own time and your own way.

One thing you can do is contact one agency at a time and offer either to make payments or to settle the debt for less than they say you owe. Do everything in writing, and via certified mail.

Also consider this: If these debts are fairly recent (within the last year or two), you're probably doing the right thing by trying to pay or settle them. However, when you contact the collectors and make any offer to pay, those collectors can then legally "re-age" the debt, meaning it will remain on your credit record longer than it otherwise would have. So if the debts are already several years old, you may be better off to ignore the collectors and simply wait until they roll off your record.

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