My husband and I are on a path to becoming debt free! We have paid off $14,000 :p :p n debt in a little over a year! Unfortunately, one collection agency has lost patience with us and had threatened to sue. They refuse any amount that I attempt to pay when they call because it is not the amount they are demanding. The amount is $6,700 and they will settle for $5,300. The problem is, we do not have this amount. The only thing we can afford is $100.00/mo. I have documented calls and have a "stop calling" letter ready to mail, but I would like to work with them. They tell me Sears will not accept any amount less than 30% to reenstate payments. Of course, we do not want to be sued. I will at least be able to show a judge that we offered to pay something. But we do not want to pay the added court costs and fees.
My delema is... should we borrow the $5,300 to get rid of this debt and keep from having a judgement placed against us? This goes against our plan of no longer borrowing to stay current on bills. We broke the cycle of debt, and I don't want to go there again, but I do want to save the most $ and not have to go to court.

If it's the only way to stave off a judgement against you, then I would consider it.

I think you have broken your habit and dependence on credit. Credit is not a bad thing if managed wisely. I think your experience has taught you how to manage it wisely.

While it breaks every rule to getting out of debt, I would look at it instead of getting a judgement against me.

Ok... I think now we will try it. We may not even be able to borrow the $. Our credit is pretty jacked up now. The interest on the loan may cost us, but I can't imagine it costing more than what a judgement would. Plus, the judgement will be on my husbands credit report.
Thanks!!