First and foremost I want to say thank you for all answers I recieve. This is obvisously not an easy time in life and all answers are carefully read, as I hope that you take into consideration all that my situation entails.
When I was 19 I set out to get myself a great credit score, something both of my parents could never do. And I did, I went through my credit report took off somthing that my dad had put in my name as a kid and got my first credit card, making on time payments and just having a balance of on the 0 limit. Well, then I, after my dad moved and other bad things happened in life (theres a long story there) I kept getting more and more cards I think trying to distract myself from my situation at the time. So I eventually realized that crap I was in a lot debt (00) which on my Starbucks paycheck of 0 bi weekly and rent in Detroit and car repairs, I was already making minumium payments so I moved to Charlotte NC to stay with my mother and pay this off. I got into debt counseling (which I feel was a mistake) I reduced all my payments from 0+ a month to 200. Well now I live in TN where the taxes and cost of living is lower. I sold my piece of crap car for a whooping 0 after it broke down and my gf and I have been sharing her car for the last 4 months and the budern as been great on us both.
Now I find myself so stressed. I let my dad use my eBay account after he lost his job so he could start making money to help himself live, but he sold stuff he didnt really have and now my paypal accoutn is at -00 and he hasnt paid on our cell phone plan (which is under my name) going for a total of new debt thanks to my dad (this is all dad related) to 00.
Well My credit card debt hasnt moved too much. And heres roughly where I lay now:
-00 in credit cards being paid off through credit counselling
-00 in medical bills I havent even touched (oh and I dont have health insurance either I took another job that promised more money but turned out I dont get medical for another 6 months)
-00 because of my dad and my sere stupidity
-00 in student loans (which I know cant go away with bankruptcy)
————–
Total = 800
I make 12000 a year and I cant just get another job because I dont have a car and my gf and I share one. I never thought I would consider this move but Ive tried for years now to do it the honest and hard working way and its gotten me nothing.
If you have a question go to my profile and click email me! Thanks!
I know that filing that would mean I couldnt get a car loan and some places wouldnt hire me but trust me that doesnt seem like a bad sacrifice even though Ch 7 would be on my record for 10 years. And once again thank you!
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Sun, Mar 7, 2010
March 7th, 2010 at 5:02 am
If you are having trouble making the minimum payments, then you are not getting anywhere. I filed for bankruptcy in 2000. It was the best thing I ever did. You can get a car loan, I did, and at a pretty decent rate considering the bankruptcy (10%). I had no trouble getting a job after the last one I had was sold and got laid off, and I am an accountant, and they did check my credit. What I was told by an employer was, the bankruptcy is not necessarily a deal breaker. What they look for when they check your credit is not necessarily bad credit, but a distressed financial situation that may make you likely to be dishonest. If they see that you have all this debt, and see how much the minimum payments are, and see that you wouldn’t be able to make the payments on the salary they offer you, then that would make them think twice. However, if they see that you filed bankruptcy and no longer owe all this money, that is less of a red flag to them.
March 7th, 2010 at 5:02 am
Wow That simply sucks.
You are way too young to file bankruptcy, Id say work hard, but you already probably are….
Maybe Doing an ebay business, and several jobs if you can… That will bring it down slowly. Don’t consider bankruptcy in my opinion, At least not at this step.
I feel your pain, I really do. Sorry
March 7th, 2010 at 5:02 am
I’m so sorry to hear about your situation…I’m not by any means a credit guru…but I used to have a 750 & purchased a house by myself when I was 25 yrs old in the Bay Area, CA…
Life happens, and my credit went down the crapper as well. What I’ve learned, is that when you let accounts go into collection…you can call them & negotiate your debt, and pay around 50% of what you owed on an account. And yes, the bad marks are still on your report, but the account will be satisfied, and done with…you can later dispute the negative things & hopefully the company you had the account with won’t provide proof that the incident you’re disputing really happened…and they are required to remove it from your report if they can’t provide proof.
I know how you feel, and I know you want to do the right thing & be a good person..but the credit industry sucks..they kick you when you’re down…I tried to get them to lower my interest rates BEFORE I made a late payment..but they wouldn’t help me AT ALL…they said I had to wait & let it go into collections…
I don’t think filing for Bankruptcy is worth it over the amount that you owe…but my realtor friend says that after you file, you get TONS of credit card offers, because they know you have no debt, and you can’t file again for another 10 yrs or so…they try to pull you back into the cycle of debt!
Anyways, hope my advice helps…don’t feel bad, right now, everyone’s credit is in the dumpster, its a difficult time right now for everyone…you are NOT ALONE.
Good Luck
March 7th, 2010 at 5:02 am
I wouldnt file… you have the credit counseling people helping you with the credit cards, that eliminates 2700 and student loans you cant put on… your total without student loans is only 6800. Id call the medical places that you have bills with, typically they will not put med bills on a credit report, by the way. But, anyway, call them and see if you can work out payments for them. A lot of time if you are willing to pay even a little at a time, they are fine with it. As long as you are putting the effort in.
If you have any credit card left, you need to get rid of it, cut them all up,except maybe one, which should only be used for emergencies and never keep it in your wallet.
You must pay more than the minimum payment every month, as much more as you possibly can. If you owe a credit card company $5000 at 18 percent interest and all you do is pay the minimum each month it will take you over 30 years to pay it off. Minus the student loans, which can’t go on bankruptcy anyway, as you already know. According to my calculations, without the student loan, you only owe 6,800 plus interest. I’m wondering what your payments you are making each month are also? I believe that you can get it paid off, it will just take a little bit of hard work. Remember bankruptcy is on your record for 7 years, you seem intellegent since most people do not catch there mistakes until it is too late, way too late….. Oh, NEVER EVER EVER EVER EVER EVER, GET A CAR LOAN, interest on those are as bad as credit cards, and in a sense they work the exact same way. If you were having problems with credit cards, the loan of a car would make it worse, remember loans also take interest. It is better to have to slowly save money for it and to pay it upfront, then to have to struggle with it for years after, and with the economy, jobs arent guaranteed, plus that extra money could go for something you need such as insurance.
After you pay off one credit card, you must apply the money you have been paying that particuar company to paying off another credit card.
You must never let this happen again.
After your debts have all been paid off, you are to apply the money you were paying all those months toward creating your future.