I need help getting out of huge debt. Advice needed...

[shurato]

If you have ever used a Debt Consolidation Agency or something similar and have had debt problems please read and help me out.

I have amounted huge credit card debts totalling a little over $20,000. It all started when I got my first card in college when they get you at those vendor tables outside during the first month of class... I've been able to pay my minimum payments and then some over the years but my debt seem to grow bigger and bigger. I would pay for school, living expenses, and etc., all on the foolish notion that once I finish college I would have a job to pay off the debt anyway. Now its catching up to me, I had to withdraw from school due to personal reasons (i did not fail out and plan on going back to finish in the future).

I lost my job a few months ago and have not been able to make the minimum payments which are already huge. The late fees and over the limit fees are mounting up and it has gotten to the point that I simply cannot make the payments that are demanded. I've been looking into debt consolidation agencies and have been getting mixed signals about them. Alot of them seem to be non-profit but alot of them seem to have some kind of hidden fees or the likes....such as first payment goes for lawyer fees for one of the organizations.

Have any of you used these types of services and can reccomend or comment on any of them? I am specifically looking at Amerix and CCCS aka NFCC...I was originally going to go with Ameridebt but have heard terrible things about them.
Is there anything my credit card companies can do with me personally to help me repay my debts? Or would going with a debt consolidation agency be better.

 

[masterxfob]

i'm almost in the same position as you, only it was my car payments that really put me over the top

i would also be interested to know if anyone has helpful information on these debt condolidation services. i know that i put myself in this position and my credit rating would plummet, but the stress is really getting to me

 

[Beau]

Chapter 13 isn't the end of the world.

Those debt management companies are almost as bad as a bankruptcy, too.

 

[Beau]

As an aside: saveshurato.com is available. It worked for karyn

 

[bunker]

Here's a good article for you

 

[shurato]

Originally posted by: masterxfob
i'm almost in the same position as you, only it was my car payments that really put me over the top

i would also be interested to know if anyone has helpful information on these debt condolidation services. i know that i put myself in this position and my credit rating would plummet, but the stress is really getting to me

Yeah, on top of rent and utilities and meager living expenses...I have a school loan that I am also repaying because I am not currently in school right now so I can't get it deferred. I'm trying to figure this all out with my very small salary at my new job. I don't think I will be able to go back to school any time soon with my current financial situation because I have to work so many hours to stay current with bills.

 

[CurtCold]

Originally posted by: Beau
As an aside: saveshurato.com is available. It worked for karyn

You beat me to it...

 

[Fritoz]

Time for some tough love...

A reputable debt counselor may help, but you need to get to the root of the problem: Cash flow. Do you have free nights or weekends? Then get a second job. Get a third job, if necessary. It's the answer many young people don't want to hear these days, they're too busy going out with friends, buying DVDs and surfing the web. Stop eating out, buy your clothes at garage sales, eat ramen noodles, buy the generic brand of food at the supermarket, cancel the cable TV, and yes, cancel that precious internet account and use a free account to check email (since you'll be too busy working to need more than a few free hours anyway.) It's time to give up the luxuries and start living that "starving college student" life you easily avoided by financing your way through it.

I'm sorry if this sounds harsh. But you can "sack up" and pay the debt that you owe, or you can roll over and take the easy way out. I can guarantee you one thing: If you pull yourself up and pay off that debt, much like Private Pyle in Full Metal Jacket you will be "Born Again Hard" in the financial arena! Then you can hold your head high, and offer up some "been there-done that" advice of your own when you come across people in similar situations. Now good luck, and go get 'em!

 

[Red Dawn]

Hey I know of this truck load of Laptops coming in tonight. PM me if you are interested.

 

[bunker]

Originally posted by: Red Dawn
Hey I know of this truck load of Laptops coming in tonight. PM me if you are interested.

Danut, is that you?

 

[boyRacer]

Originally posted by: Red Dawn
Hey I know of this truck load of Laptops coming in tonight. PM me if you are interested.

:Q Are you guys going to drive black civics with neon lighting under it and then hijack the truck?... :Q

 

[Viperoni]

Originally posted by: Red Dawn
Hey I know of this truck load of Laptops coming in tonight. PM me if you are interested.

Shhh... you weren't supposed to tell anybody else!!! :|

 

[ShotgunSteven]

Originally posted by: boyRacer

Originally posted by: Red Dawn
Hey I know of this truck load of Laptops coming in tonight. PM me if you are interested.

:Q Are you guys going to drive black civics with neon lighting under it and then hijack the truck?... :Q

No, they are going to drive THESE then fly away before the cops arrive.

 

[Zebo]

Chapter 7 was made for people in your situation.

Live and learn and don't repeat 20K is small change.

 

[boyRacer]

Originally posted by: ShotgunSteve

Originally posted by: boyRacer

Originally posted by: Red Dawn
Hey I know of this truck load of Laptops coming in tonight. PM me if you are interested.

:Q Are you guys going to drive black civics with neon lighting under it and then hijack the truck?... :Q

No, they are going to drive THESE then fly away before the cops arrive.

Well those can definitely fit under the trailer... if they even get the notion of doing that for no reason at all...

 

[CallTheFBI]

It's stories like yours that make me never ever want to get a credit card. I'm going to stick with my checking account until I get a rock solid career and I am OUT of college completely. I won't even get a credit card with tiny limit. It starts small and then it gets huge, that's how it works. Credit cards are the devil.

 

[dxkj]

I'm in college right now, taking 17 credit hours (5 classes) and am working 50+ hrs a week (around 30+ is overnights at target). You can find jobs like this at most department stores and they pay pretty decent (7-10 dollars an hour starting). If I wasnt in school I could do 80 hrs a week.

80x9=720 a week=2880 a month = 34560 a year.... not bad for working a job you dont need any education for

after tax lets say that is around 28k

living expenses:

Weekly you should spend no more than 20-30 dollars on food, its rather easy, spaghetti is a great meal and usually pretty cheap, ramen, etc other pasta fills you up and costs almost nothing.

25x4x12=1200 dollars in food


clothes? I have the same clothes i did for the last few years, buy some cheap underwear and socks 50 dollars in a year should cover you

entertainment? keep it to a minimum, rent a few movies a month, 1 a week = 15-20 dollars a month = 200 a year

sickness? Just dont get sick, its the easiest way

housing? I know this is rough depending on where you live, Im near chicago and its expensive, cheapest place is like 650 a month and its a dive. 650x12=7800


ok so there you are, about 10k in expenses, and that leaves 18k to pay off your cards, in one year




Suck it up and go for it.

 

[Zebo]

Originally posted by: CallTheFBI
It's stories like yours that make me never ever want to get a credit card. I'm going to stick with my checking account until I get a rock solid career and I am OUT of college completely. I won't even get a credit card with tiny limit. It starts small and then it gets huge, that's how it works. Credit cards are the devil.

Smart. I encouage you to read Art of Money Getting by P.T. Barnum, a timeless, short, simple, classic which is tried and true.

 

[ShallowHal]

Originally posted by: Beau


Those debt management companies are almost as bad as a bankruptcy, too.

That's not true. It's not even the same process as bankruptcy. A company such as Creditguard (I used them) get your high interest rates knocked way down which helps to get them paid off much sooner. When your bill(s) are finally paid, your credit rating is still intact. If you have a job, don't miss a payment, you'll be fine. It's true that you have to bite the bullet and start managing your money much better. A cash only basis if you're smart. It may take 5 years but in the end you can move on with your life AND still have good credit.

 

[jaeger66]

First, call your student loan lender and ask for a financial hardship deferment. Almost all will give one for up to a year with no questions asked the first time. Not much can happen to you aside from bad credit if you don't pay your credit card bills, but student loans are secured and held by the government. It's a whole different deal. Second, forget the debt counselors. All they exist for is to make sure the CC companies get every dime out of you. Call the card companies, explain that you are considering bankruptcy, but that you will pay 20% of your debt in order to avoid this. Some will refuse, some will take it, and some will negotiate up. But the opportunity to wipe out half your balance with a phone call is there if you want it. Personal bankruptcies are skyrocketing so many card compainies will take 20% instead of nothing.

 

[CallTheFBI]

Originally posted by: Carbonyl

Originally posted by: CallTheFBI
It's stories like yours that make me never ever want to get a credit card. I'm going to stick with my checking account until I get a rock solid career and I am OUT of college completely. I won't even get a credit card with tiny limit. It starts small and then it gets huge, that's how it works. Credit cards are the devil.

Smart. I encouage you to read Art of Money Getting by P.T. Barnum, a timeless, short, simple, classic which is tried and true.

Looks like good sound advice except for the part about being charitable. Charity is not in my vocabulary.

 

[Zebo]

Originally posted by: CallTheFBI

Originally posted by: Carbonyl

Originally posted by: CallTheFBI
It's stories like yours that make me never ever want to get a credit card. I'm going to stick with my checking account until I get a rock solid career and I am OUT of college completely. I won't even get a credit card with tiny limit. It starts small and then it gets huge, that's how it works. Credit cards are the devil.

Smart. I encouage you to read Art of Money Getting by P.T. Barnum, a timeless, short, simple, classic which is tried and true.

Looks like good sound advice except for the part about being charitable. Charity is not in my vocabulary.

Of course men should be charitable, because it is a duty and a pleasure. But even as a matter of policy, if you possess no higher incentive, you will find that the liberal man will command patronage, while the sordid, uncharitable miser will be avoided.

 

[dxkj]

Personal bankruptcies are skyrocketing so many card compainies will take 20% instead of nothing.

does this actually work and

1) Will it be counted against you in the future?
2) Dont some people abuse this? IE is there a record kept?

 

[MooseKnuckle]

I know how you feel. I was in debt for $16k. I basically let it get out of control, so I stopped using my credit cards. Now, I only use my Visa check card. I've tightened my budget and began paying off more than the minimum monthly charge. I recently got a $20k credit card w/no interest and minimal balance transfer fees till Oct. '03. I moved my current balance total to that new card. Thankfully, due to my budget reforms, I'm down to $5k. I plan to pay off the remaining balance by May'03. I'd consider debt consolidation, that way you won't be hassled by companies calling you for money. Good luck.

 

[CallTheFBI]

Originally posted by: dxkj

Personal bankruptcies are skyrocketing so many card compainies will take 20% instead of nothing.

does this actually work and

1) Will it be counted against you in the future?
2) Dont some people abuse this? IE is there a record kept?

Uh yeah, your credit rating goes down the crapper. Every record is kept by credit report agencies that people can tap into. If you go to apply for a job they might look at your credit report and weigh that into your other stuff. No matter what people tell you when it comes to applying for a job, no credit is better than bad credit.

When I applied for a job as a dispatcher at my local sheriff's department the background investigator looked at my credit report and said it was good that I didn't have anything on it.