Credit Debt

[jerrodh]

Got a question on what/if any options I have. Not really going to go in details much but as you all know times are tough, and some of you may have picked up I'm recently out of a job. I've been struggling through college up untill now and have found myself under a pile of credit debt. I've never really had a problem making minimum or greater payments in the past but not having a job and looking at them all kind of kills me.

 

So what if anything can or should I do? I have four various cards with anywhere from $700-$1500 on each. Chase has a total of three of my accounts due to some bank's they've purchased in the past.

[jerrodh]

lol thanks man.

[TheHaze]

The time you're spending here on CR could be spent sending your resume out and applying to employers. Also, is your profile correct, in that you own more than one vehicle? Simplify how you live and find a job. Contrary to popular belief, money in the amount you have spoken of is not impossible or even that difficult to come by, assuming you're actually trying to find work.

[jerrodh]

Thats in play right now and has been since I've lost my job. But just wondering if there is anything else I could do about my credit situwation. If consolidating them somehow could help or what? And if so how and where do I do that.

 

Rangers gone. I know its not impossible but as I said I am pursuing a college degree, and between that and busted cars after busted cars and now a job loss its been difficult to get back ontop of my payments. I'm not a deadbeat guys lol just wondering if theres anything other than simply 'pay them off' that I could do as of now thats all.

[TheHaze]

Well, debt consolidation is essentially just a new loan to cover all of your debt so that you just make one payment to the consolidator. I'm assuming in order to consolidate your debt, you'd need a job in order to secure such a "loan". I don't think you're in enough debt to warrant consolidation, though. I think that you really need to get creative with making some extra cash and finding a job. Put all of your efforts in to those two things.

[Mensan]

If expenses > income find a way to increase income and reduce expenses.

 

How bad is it, and is it going to get worse soon?

[HAOLE]

You need to start selling what ever you have to get rid of your debt. Most importantly stop spending. Several people on her gripe when I post things about debt, I think because they assume they are immune from financial woes. Stay away from debit as much as you can. Most of us are a job loss away from ruin, that is why I say learn to live on a cash basis.

 

As for me I have one credit card, that I only use to rent cars when I travel. Debit cards can be used, but it is sometimes a pain to find a company that will accept the for rentals. The rules vary from location to location.

 

One thing you can do is contact Consumer Credit Counseling, they are now called Apprisen. http://www.apprisen.com/ They will contact the lenders get your interest reduced and have you make one payment to them. When I was younger I got in credit card trouble due to my own stupidity and youth, they helped me out with about 20K in CC debit.I was about to get it paid down to 0 in 3 years IIRC. Never again have I held a CC balance. I use debit cards only, unless I am at a car rental counter.

 

You will take a minor credit ding, but if you dont use credit anymore that is not a huge downside.

[Rustlestiltskin]

You got 2 cars. sell one. I win

[99ta]

call all your cards holders and advise them of your job loss and "hardship". You have to use the word "hardship". I have called all mine, min payments cut in half, interest rate cut from high 20s to under 6%. it all helps.

[excell]

call all your cards holders and advise them of your job loss and "hardship". You have to use the word "hardship". I have called all mine, min payments cut in half, interest rate cut from high 20s to under 6%. it all helps.

 

+++

 

Step 1: Call your creditors. Not calling them is the *worst* thing you can do. They need to know, and in most cases, they'll help you as noted above.

[lawnman]

+++

 

Step 1: Call your creditors. Not calling them is the *worst* thing you can do. They need to know, and in most cases, they'll help you as noted above.

 

+2

[Akula]

Contact your creditors and tell them your situation. Let them know you know you owe them the money, you are trying. You need to get a job, any job. Don't be like cousin Eddie and hold out for a management position. Flip burgers if you can, and make an effort to pay.

[Snowflake]

Get a g/f that makes good money...

[Trouble Maker]

Like someone else said, that's not a lot of debt. Don't even think about trying to get out of them and adding to our society's financial issues.

 

To reiterate, call your debtors. Generally speaking they would rather work with you so you can pay them than send you to collections, see you go bankrupt. That gets them 0 money.

 

Shred your cards so you don't use them anymore. When you pay them off cancel them. Or shred all but one and keep one for only emergencies. One creative thing I've seen is to freeze it in a block of ice so you won't just use it for whatever, only for real emergencies because it's a very conscious decision to thaw it out of that ice. Though if you really need to do that to control your spending, just shred it.

 

If expenses > income find a way to increase income and reduce expenses.

 

Long term I want to really emphasis this. You can make any amount of money in the world and live paycheck to paycheck. The only way to get ahead financially is to live below your means.

 

I make decent money, but I never had any left over at the end of the month. I wasn't saving anything. But I was doing OK financially, 'only' had a car payment and student loans for debt, no CC's or anything like that. But like V8Klr said, that only puts you a few paychecks away from serious financial issues. That's what you've found yourself in.

 

I want you to take this as a time to get your house in order, and not just 'short' term paying of your CC debt, but how do you not have this happen again long term and be more comfortable. You can make any reasonable amount of money and not worry about money with the right plan and mindset.

 

After you pay off those cards you need to think about what it was like being underwater so you plan to never get back there again. Make more than what you spend, and save whatever is left. Automatically have money going to savings so you don't touch it. Even if it's 50 or 100 a month. After not too long you have a few grand to fall back on if an emergency comes up, or you lose your job. I should reword that, spend less than what you make. Yes, it's easy to say 'go make more money' and that should be a goal, but in many cases it's actually easier to just spend less. Get into an apt that cost less, don't use cable or spend less on cable. Reduce your cell plan, or cancel it and get a home phone. The big one for me was finishing my car payment and not getting into another one. Don't eat out, don't go out partying.

 

Make a budget for everything so you know where you money is going or you'll have no path to be able to do any of this. Make a plan for paying down you CC debt, now. Even if you're not making any money now, you can start that plan the day you get your first paycheck when you get another job.

 

Start reading http://www.consumerist.com search around there about paying down CC debt, there are some good post.

[jerrodh]

Thanks for the solid help guys. I've added consumerist to my favorite websites I frequent nearly everyday. I'm going to call my creditors and see if they can at least reduce the rate for the rest of the time.

 

And I've got a good job now, got a call back this morning on my interview the day before, going in for a drug test (which will pass without a problem so no comments on that lol). It's actually going to be better than my last job so thats good.

[Trouble Maker]

Great to hear about the job! Now just make a plan/budget to get out of that debt.

[87GT]

If you are jobless sell both of your cars you can't afford them. You can take the bus, buy a bmx bike, or walk. Use all that money towards your bills. Start with whatever one has the highest interest rate and focus on paying that off. Pay minimum payments on the others until the highest interest rate card is paid off. Then rinse and repeat until all cards are paid off.

 

Also start working odd jobs. Start cutting grass around your neighboorhood. Get a paper route. Babysit or animal sit. Work on your friend/families cars. Money is money no matter how you get it.

[Brrcats]

Prostitution.

 

 

 

/thread

[cinergi]

Thanks for the solid help guys. I've added consumerist to my favorite websites I frequent nearly everyday. I'm going to call my creditors and see if they can at least reduce the rate for the rest of the time.

 

And I've got a good job now, got a call back this morning on my interview the day before, going in for a drug test (which will pass without a problem so no comments on that lol). It's actually going to be better than my last job so thats good.

 

 

Where did you get hired at? That's good news!

[Akula]

awesome you have a job, now you just need to take everyone's advice and pay yourself some.

 

when I got married 15 years ago, we went into debt pretty heavy. Military didn't pay much and my wife was in school. I set little goals. I took the smallest balance card we had and payed it off. Then the next, then the next, then the car, then the second mortgage on the house, eventually I had just a house payment. I have been able to squirrel away some for my kids college, my retirement, and my toys. It wasn't a simple road and I didn't get to do everything I wanted then, but I can do almost anything I want now.

 

Read Peter Lynch's books. You can drive new cars now, or you can wait and drive Mercedes and Porsche's later. Your choice.

[HotCarl]

Like someone else said, that's not a lot of debt. Don't even think about trying to get out of them and adding to our society's financial issues.

 

To reiterate, call your debtors. Generally speaking they would rather work with you so you can pay them than send you to collections, see you go bankrupt. That gets them 0 money.

 

Shred your cards so you don't use them anymore. When you pay them off cancel them. Or shred all but one and keep one for only emergencies. One creative thing I've seen is to freeze it in a block of ice so you won't just use it for whatever, only for real emergencies because it's a very conscious decision to thaw it out of that ice. Though if you really need to do that to control your spending, just shred it.

 

 

 

Long term I want to really emphasis this. You can make any amount of money in the world and live paycheck to paycheck. The only way to get ahead financially is to live below your means.

 

I make decent money, but I never had any left over at the end of the month. I wasn't saving anything. But I was doing OK financially, 'only' had a car payment and student loans for debt, no CC's or anything like that. But like V8Klr said, that only puts you a few paychecks away from serious financial issues. That's what you've found yourself in.

 

I want you to take this as a time to get your house in order, and not just 'short' term paying of your CC debt, but how do you not have this happen again long term and be more comfortable. You can make any reasonable amount of money and not worry about money with the right plan and mindset.

 

After you pay off those cards you need to think about what it was like being underwater so you plan to never get back there again. Make more than what you spend, and save whatever is left. Automatically have money going to savings so you don't touch it. Even if it's 50 or 100 a month. After not too long you have a few grand to fall back on if an emergency comes up, or you lose your job. I should reword that, spend less than what you make. Yes, it's easy to say 'go make more money' and that should be a goal, but in many cases it's actually easier to just spend less. Get into an apt that cost less, don't use cable or spend less on cable. Reduce your cell plan, or cancel it and get a home phone. The big one for me was finishing my car payment and not getting into another one. Don't eat out, don't go out partying.

 

Make a budget for everything so you know where you money is going or you'll have no path to be able to do any of this. Make a plan for paying down you CC debt, now. Even if you're not making any money now, you can start that plan the day you get your first paycheck when you get another job.

 

Start reading http://www.consumerist.com search around there about paying down CC debt, there are some good post.

 

This man speaks the truth. Only a few years ago I started "paying myself", or actually saving money and living below my means when I lost my job 2 years ago I was fortunate to have a few grand in saving's on top of what unemployment pays I was actually enjoying sleeping in every day while "looking for a job". Alas that couldnt last forever and believe it or not I started HATING being unemployed and wanted to be a contributing member of society. Im probably a month away from paying off my last and only credit card.

 

The only opposing advice I would give from what Trouble Maker said was about canceling your credit card accounts. Your FICO score depends heavily on your credit history. By deleting credit card accounts your essentially deleting what you worked hard to turn into good credit history by paying off account to show no balances. I would say pay them off then dont use them. If its too tempting cut them up. Be sure to check if there's any annual fee's before you stop using them.

 

 

DISCLAIMER: im not a expert this is just a small portion of how I understood what ive read about credit history and credit cards. Take it for what it is.

[Miller]

Or you can get into contact with me by pm and I will show you how to get rid of them with no repercussions on your credit score. Do not expect to receive credit from those particular lenders ever again.

[OGRE]

Pay off the smallest dept first, pay your housing and food expenses first. If you have a car payment get rid of it and buy a beater.

 

DO NOT got to credit counsiling, they also want to take your money. you can deal with your creditors yourself. If a person from here can help you fine, but credit counsiling isn't a sainted institutiuon, it's a buisness.

 

I have been listening to dave ramsey for about a year now, in the last 12 months we have killed over 15K in dept and plan to get rid of the last 6k by christmas. Leaving us free of debt other than our morgage. Anyone willing to actually work and true to the plan can get out of debt. It may take 2 jobs, but money comes from work, untill you are out from under your debts and can start making your money work for you!!!!