Nick asked:
I have about 7500 in credit card debt. I know this may not seem like a lot to some people, but I’m only 24 and I bought a truck that I probably shouldn’t have and the payments on that are what’s killing me. I’ve decided that the last thing I want to do is get rid of the truck. I have fallen behind on some of my payments and am acquiring late fees and higher interest rates, and my credit is being shot to hell in a hurry. I have applied for several personal loans to pay off my credit cards and get one lower monthly payment, but I’ve been denied every time because of my poor credit. I don’t really want to go through a credit counseling service yet, because that shows up on my credit report and will further reduce my score. I have worked thorugh my budget with a fine tooth comb and I’ve done calcualting with differnt loan terms/interest rates/etc. and I know I can afford one, but how do I get one? Any advice you can give would be greatly appreciated.
I would appreciate worthwhile answers only, please. I’ve only had the truck since March, so my loan would be way upside down, and with my credit what it is now, I wouldn’t get anything reliable for the loan I’d get.
http://1mortgagecalculator.info
I have about 7500 in credit card debt. I know this may not seem like a lot to some people, but I’m only 24 and I bought a truck that I probably shouldn’t have and the payments on that are what’s killing me. I’ve decided that the last thing I want to do is get rid of the truck. I have fallen behind on some of my payments and am acquiring late fees and higher interest rates, and my credit is being shot to hell in a hurry. I have applied for several personal loans to pay off my credit cards and get one lower monthly payment, but I’ve been denied every time because of my poor credit. I don’t really want to go through a credit counseling service yet, because that shows up on my credit report and will further reduce my score. I have worked thorugh my budget with a fine tooth comb and I’ve done calcualting with differnt loan terms/interest rates/etc. and I know I can afford one, but how do I get one? Any advice you can give would be greatly appreciated.
I would appreciate worthwhile answers only, please. I’ve only had the truck since March, so my loan would be way upside down, and with my credit what it is now, I wouldn’t get anything reliable for the loan I’d get.
http://1mortgagecalculator.info
just do one thing
change ur identity
and ur address
thats the easy way do get rid of all these debts’
sorry for this if u do not like this
or do one thing just ask some favour from ur frends
if they are ur frends they wil help u
and after all u can ask ur girl frend for that
or work hard earn money and pay the amount
with regards
Even if it’s the last thing you want to do, get rid of the truck anyway – you can’t afford it. It doesn’t matter if you are upside down on the loan, you are always upside down on car loans. Keeping it will just force you into more debt faster.
Second, until you pay off your debts, anytime you even think about spending money on a nonessential item (and in this case, nonessential is anything beyond basic survival), put you hands in your pockets and keep them there until the thought of spending money goes away. Do not carry cash, do not carry a check book, do not carry credit cards. Get serious about your money NOW.
Yes, it’s no fun. You can’t afford fun right now. So, put your head down, work, eat, sleep, and pay your bills. Period. Time to be a man, not a boy.
The first answer does not make sense. You have a truck with a license plate. If you changed your name and address, you would have to change your motor vehicle registration, and that is a public record.
I am sure you have heard of the expression: “You cannot have your cake and eat it, too.” That’s where you are right now. Your best course of action is to sell the truck, pay off the debt, and if any money is left, use it to buy a cheaper truck.
The credit card company can sue you, get a judgment, and take your truck. If they take the truck, they will sell it at auction and may end up selling it for a lot less than it is worth. You are still responsible for the debt remaining if the sales price is less than what you owe.
Oprah did a great episode on Debt Diet. You should track it down on her website. It gives you advice and guide through ways in which you can solve your problem
Good Luck
Increase your assets and reduce your liabilities.
It appears that the truck is one that you cannot afford in the first place. Don’t drown in debt. That’s the last thing anyone would want. Sell it and use public transport for the time being. That should make life a lot easier.
You may have to take up another part time job to increase your earnings to pay off the debt. Its no fun but you must do it.
After your debt is cleared you may consider going in for a previously owned vehicle. They are cheap too.
Always bite off how much you can chew. That’s the lesson many people in debt have to learn.
Hi Nick:
Obviously you don’t want to get rid of the truck. This appears to be your priority. However, you’ve already experienced difficulty getting a consolidation loan. Having said that I would suggest:
1. Figure out how much you can send realistically to your credit cards.
2. Call your creditors and explain that you’ve overextended yourself. You know that you’ve got to pay your bills and want to do the responsible thing. Work out a payment arrangement. Get names, and dates of each person you speak to.
3. Cover every conversation with a letter outlining the payment arrangements and the person you’ve spoken to. Send it via certified, registered or overnight mail.
4. Cover your assets by keeping copies of the letters and confirmation of receipt in a safe place.
5. Get a part-time job. This will help you earn extra money and keep out of spending trouble.
6. Cut up or shred all your credit cards. You won’t need them to keep your credit active because you’ll be making payments on your truck.
7. Follow your payment plan exactly.
It is very important that you clean up your credit now. A poor credit score can cost you thousands in higher interest charges. It also affects how much you pay for car insurance, whether you can get utilities without a deposit and possibly your ability to get a job.
Good Luck!
Anne
Credit counseling no longer causes your score to drop further. That practice ended around 1999 after a study done by Fair Isaac Corp. They found that people who are on a debt management plan are no more likely to default than those who are not.
If your accounts are past due, then you will have to double up on payments to bring them current. This means increasing your income through overtime or a second job.
Applying for more loans is what will reduce your credit score. I do not recommend applying for any more loans.
It would make good sense for you to meet with a credit counselor. This does not mean that you have to enroll in a debt management plan. They can frequently give you ideas and strategies to help you get back on track on your own. However, based on the limited information you provided, it sounds like a debt management plan may be the only alternative you have to defaulting on your debt.
You seem to recognize what the pressures are on your budget. You know your situation better than anyone, so whatever you decide, make sure it is in your best interests. Good luck.
If you own yor own home you can refinance and pull cash out to pay off your credit card bill and raise your credit score dramatically. I work for United Lenders Group and I work with over 45 different banking companies so I could get you a mortgage loan no matter how bad your credit is or how much in debt you may be
916-860-0804
keyon
To stopccdebt: I would be interested in looking at the source of your information regarding how credit counseling (debt repair?) does not effect your credit score. Everything I have read is quite the opposite.
And the fact that you own a credit counseling company makes this comment suspecious and self-serving. So if I’m wrong, kindly point me to the source of your information.
amkornele’s answer is the best. All I can add is that you may be able to survive if you could get a consolidation loan of some sort.
When you apply, talk to the loan officer and ask them not to run a credit check unless they are seriously considering offering you the loan. Take a copy of your current credit report with you, along with all of your financial data. Demonstrate to the officer that you do have a plan for payment. If you have a job, consider having payments sent directly from your paycheck. I’ve had cases where the loan officer was on the fence, and knowing that the money was going to be directly taken convinced him to accept.
Good luck
Personal loans aren’t the answer. The APRs will be too high.
You need to get a second or third job, get a few roommates, sell your belongings, and raise some cash.
well, I don’t promise anything but
here’s two links that often get me best answers:
and here
you may also pass them around and help anyone get rid of their debts, people always seem to find help via these links so spread the karma and get points.
good luck!
Online Debt Consolidation
Strategies to Reduce Debt Quickly