Ok, so I know this is not going to be a popular subject, it is very much a "grown up" problem that I never thought I would find my way too. But, lucky for me....it found me - DEBT! That's right folks! I never had any until those legalized loan sharks got me with there "free money" cards! So I find myself up to my eyes in debt.....oh about 10k give or take...soon to be 13k with my upcoming wisdom teeth removal. I made the common mistakes....thinking the money was free in some odd way, thinking I could cover the payments, not realizing what interest rates were really about (found that out when I was paying 200 a month and not spending on one card and the balance was rising more than the payment practically all on its own) and using credit to buy things like groceries and fuel. What i want to know is this....I have two jobs, so money is coming in, but how do I get on top of this and resolve it? I can barely make the minimum monthly payments and that is in no way helping my balances to be lowered. I have been reading about these debt counseling services and debt consolidation places...but I am worried that using one will negatively effect my credit as well as the fact that they cost money that I do not have! Has anyone been in my place? Has anyone found something that really works? Are there any books out there about tackling this issue by yourself without paying someone to help you? Sorry, I know this is not entertaining and I know that I am not the smartest when it comes to money management....I thought I was, but I guess not. In the meantime I have cut everything down to bare minimum....no extras, just the basics and have been working a ton of overtime.... Any suggestions? Or feelings about this? Or a story that you can share? I know what it feels like now....what a terrible thing to wake up to each morning!
liquidate absolutely everything you can live without. i'm not joking, i'm including counches, bookshelves, dishes, EVERYTHING. if you can sell everything you own and live in a cheaper place, live with the cheapest basics you can handle, you can increase your payment. debt consolidation services do reflect badly on your credit, but not as bad as bankruptcy.
i vote for debt consolidation as well, or at the least look around and see if there are any free financial counselling services in yoru area. there are a couple around here i think, but im in a whole other country soooo
sorry, i meant debt counselling service reflect poorly, but said debt consolidation because i meant to throw that in there, too. that's good.
So you think that consolidation is the best bet? We are actually moving to a cheaper home in October (in PA) so the rent and car insurance payments will be cut down. We are also selling off alot of things on ebay that we dont use, want or need.
No debt for me because I have refused to buy into the credit card scam. The banks LOVE for you to be in debt because debt equals control. That's why banks are pushing credit cards on kids as young as 15 (maybe even younger than that now). The idea is to get them in debt as early as possible so they can never emerge from it. All that once free credit is starting to dry up, and people are going to be hurting once they can no longer afford their fancy cars and cheap trinkets from China.
kinda late for that, matt. i'm sure she knows it. anyway, we never work on credit anymore, except for house and car. because we got into a massive nightmare of debt that we're only now seeing the end of. it's been 5 years. this shit takes a long time.
I used to be in a lot of debt but am finally out of it and will never have that problem again. Right now I'm trying to save ten to twenty percent though but it's tough cause there's always something I want to do.
I had never been in debt until this year. My wife and I got a credit card so we could afford to hike the PCT for a few months. We hiked for about 4 days, and here we are, $2,000 in debt, and all I can find is odd jobs. Lesson learned Peace
Beat the credit card companies at their own game. Apply for a second card...one with a promotional 0% interest rate for balance transfers. Transfer your balance to the new card and destroy your old one, and cancel the account. Do not use the new card for anything but true emergencies. Begin paying down the debt. When the promotional period is nearing it's end, apply for another card and repeat the above. It'll take a couple of YEARS to wrangle the debt down, but you won't have to deal with any consolidation services or declare bankruptcy, plus you'll be building a good credit rating by paying your cc bills on time. You may get a couple of demerits on your credit history for the transfers, but they are minor compared to admitting defeat. In the meantime you should probably hop on 80 west on Saturday or Sunday and browse the Pocono flea market for relaxation. Then head north on 209 and hit Raymanskill Falls. Always a good day. If you're in the mood, run some Jack Daniels green label across the state line for me too...haha.
The problem with the balance transfers are that I can no longer get high limit cards....I tried that....but nothing will cover the total amount....they send me like 300-1000 offers at a time. Boo. Town Wide garage sale tomorrow in Annandale....I'm there.....but not to spend money haha.
Going to Consumer Credit Counseling will report to credit and will be looked on as a negative event. But not the end of the world, espically if your payments are on time. Climbing card balances will do just as much to damage credit scoring as CCC. Get a copy of your credit report to check for scoring, landlords will. Going on a Bankruptcy, Chapter 13 plan could also be considered. Its where you pay into a court administered plan for two years, then debt is forgiven. For a balance of $15K it seems small to go Ch13. This will hurt you for a mortgage loan. Back to CCC: If you are no longer in credit counseling, having completed the plan, it is not held against you. If its two years in the past, so much better.
