My Credit is kinda in the shitter

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Falloutboy

Diamond Member
Jan 2, 2003
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well in college I was barely making it between working full time and trying to make the bills and ran up some credit card debt (about 6 Gs) after school I couldn't get ****** for jobs and took a crap job just for experience on the resume and didn't make any progress paying if off. over the time I had a few bad months where I had car issues or some other emergancy money issue that I couldn't pay a card or two so my credit is pretty suck currently and since the late payments my interest rate is pretty nasty. I called my biggest offender and they said they would put me on a 7.5% payback plan but it would closeout the card and from what i've heard this would tank my credit even more.

what do you think is the best way to go try to get them payed off at the insane rates or take the hit credit whys and get the better interest rate and pay them off that way
 
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Aimster

Lifer
Jan 5, 2003
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If you have a little money now you can go to a credit agency that will repair your credit.
 
Saint Nick

Saint Nick

Lifer
Jan 21, 2005
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All kidding aside... I think you need to find a credit counselor. They will give you the best information. However, I'm sure some people here on AnandTech have some information they are willing to contribute.

I know very little about credit and credit ratings.
 
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Falloutboy

Diamond Member
Jan 2, 2003
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Originally posted by: Aimster
If you have a little money now you can go to a credit agency that will repair your credit.
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don't have much now but i'm moving home and will prolly have some fom my deposit on my apartment and a month of working without rent to pay, how much are we talking and what does a credit agency do? I though they were just scams and do pretty much the same thing to can do on your own
 
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Falloutboy

Diamond Member
Jan 2, 2003
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Originally posted by: jndietz
All kidding aside... I think you need to find a credit counselor. They will give you the best information. However, I'm sure some people here on AnandTech have some information they are willing to contribute.

I know very little about credit and credit ratings.
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yah me neither I know my dad would prolly know what to do, but he'll just bail me out as always and ad to the bank of dad debt hole with him (lots of cash from college since I didn't qualify for ****** because he made to much) and I would prefer to try to get the sorted on my own for once
 
Saint Nick

Saint Nick

Lifer
Jan 21, 2005
17,722
6
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Originally posted by: Falloutboy
Originally posted by: jndietz
All kidding aside... I think you need to find a credit counselor. They will give you the best information. However, I'm sure some people here on AnandTech have some information they are willing to contribute.

I know very little about credit and credit ratings.
Click to expand...

yah me neither I know my dad would prolly know what to do, but he'll just bail me out as always and ad to the bank of dad debt hole with him (lots of cash from college since I didn't qualify for ****** because he made to much) and I would prefer to try to get the sorted on my own for once
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Well, with that said, you really need to find a credit counselor.
 
F

Falloutboy

Diamond Member
Jan 2, 2003
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whats a credit counselor going to do though besides just telling me what to do, and take more money I really don't have from me
 
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bctbct

Diamond Member
Dec 22, 2005
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try searching at creditnet.com, they have forums that should help. Any agreement you make w/CC companies regarding saving your credit report, get in writing.


edited to add

do your homework on this, do not pay a company alot of money to save your credit history beause many of them will rip you off.
 
Mo0o

Mo0o

Lifer
Jul 31, 2001
24,227
3
76
Originally posted by: Falloutboy
whats a credit counselor going to do though besides just telling me what to do, and take more money I really don't have from me
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help you consolidate your debt, ways to decrease your payments, spread them out etc.
 
xgsound

xgsound

Golden Member
Jan 22, 2002
1,374
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Here's an idea that's free. There's a radio program (call-in talk show) that discusses this exact problem up to 3 hours a day in many cities. Go to http://www.daveramsey.com and check for your local stations.

First make a budget that includes a minimum payment to everyone. Second accumulate a $1000 emergency fund. Third pay off your debts in full by paying off the smallest balance first. This starts off the debt snowball. When that smallest debt is paid off, the money can then be applied to the next smallest debt, and you have accomplished something.

Be very careful dealing with Credit Card companies, they will outright lie to you. "Counseling" services can be almost as hurtful to your credit as a bankruptcy, so use caution there too.

If your total debt is $6K, you don't have the problem you think you do. Fixing it yourself is a good idea , but you need a thought out plan. The Dave Ramsey radio show has a plan to offer with daily reinforcement if you want. He sells books and such, but it sounds like all you need is a little direction and a plan.

So I say listen for a week and see if it helps. The price is right.


Jim
 
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rmrf

Platinum Member
May 14, 2003
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I was in a similar situation, I had about $7K spread over 3 or 4 cards. One had about $4K on it, the next about $2K, and the other's had a little less than $1K. I did exactly what xgsound said. pay the minimums (it's gonna suck since you will be accruing that large finance fee each month on the larger balances), but pay as much as you can on the smallest balance. Once you get the smallest balance paid off (the key is to pay at least twice the minimum), move that over to the next smallest. By the time you get to the largest balance, you will have a hefty payment going, it was about $250 without denting my budget, usually more because I threw all I could spare at it. It took about 1 year to do that, living at the bare minimum with a salary of ~$40K/year. You said your job situation isn't great right now, so just pay what you can afford. By doing this yourself, you will salvage what is left of your credit history.

good luck :beer:
 
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Falloutboy

Diamond Member
Jan 2, 2003
5,916
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Originally posted by: rmrf
I was in a similar situation, I had about $7K spread over 3 or 4 cards. One had about $4K on it, the next about $2K, and the other's had a little less than $1K. I did exactly what xgsound said. pay the minimums (it's gonna suck since you will be accruing that large finance fee each month on the larger balances), but pay as much as you can on the smallest balance. Once you get the smallest balance paid off (the key is to pay at least twice the minimum), move that over to the next smallest. By the time you get to the largest balance, you will have a hefty payment going, it was about $250 without denting my budget, usually more because I threw all I could spare at it. It took about 1 year to do that, living at the bare minimum with a salary of ~$40K/year. You said your job situation isn't great right now, so just pay what you can afford. By doing this yourself, you will salvage what is left of your credit history.

good luck :beer:
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yah had a simlar thought, just praying I don't get hit by the my CC companys raising the min payment like i've been hearing about because that will just crush me
 
dullard

dullard

Elite Member
May 21, 2001
25,820
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Originally posted by: Falloutboy
yah had a simlar thought, just praying I don't get hit by the my CC companys raising the min payment like i've been hearing about because that will just crush me
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That suggested minimum increase is required to occur this month. Only some companies are affected (the ones with the lowest minimum payments), so you may be in the clear. You'll know soon enough.

The key is to forget your credit score. It'll be in the shitter for a while. Just do what you can to salvage what you have. Then start to build it back up. I would therefore consider that 7.5% plan. It does depend on how much you owe on that card and what the current interest rate is.

But really $6k is nothing. Just cut way, way back on expenses and increase your income. You can do it in short order.

Expenses: Stop eating out, make a sandwich. Stop drinking alcohol or pop, water works. Stop smoking if you do. Stop going to movies or renting from Blockbuster, 49 cent movies at the supermarket are fine. Do you really need that broken down car? You can get rid of insurance, gas, maintainence, etc on that car. Get all your credit cards to at least drop the interest rate. Maybe don't go on a payment plan, but at most will at least drop it a few percentage points. Turn off your cable service, internet service, and/or phone service. Doing these types of things will save most people a minimum of $15 a day - often up to $30 a day. At that rate, you'll have your $6k in a year and maybe less.

Income: Grab a second job. Sell a few items that you really don't use. Sell blood plasma at $50/hour. Do a medical study at $1000-$2000 per week. Sell your broken down car. Get a roommate. Etc. You can get that $6k in savings in a few months if you just work hard.

Combine the income and expenses tricks and you'll have it paid off in maybe 3 months. Three months of pain and torture. But you can do it.
 
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