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Yaystartingover

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  1. This. Very true. Some people make minimum wage, as low as $7-8 an hour in some states. Even 40-60 hours of work a week can make that minimum wage hard for those people to live on, especially if they have kids. Yes, some can get food stamps, but some can’t. If they make “just over” poverty level, they can’t get welfare/social aid, but are still “poor.” People who made bad choices in their teens (dropping out of high school, not going to college, criminal records, etc.) can be still paying for those choices when they’re in their 40-50s. Their fault, but it’s still a rough life for them. Some grew up in squalid ghettos with rampant poverty, little to no role models, little to no adult supervision, gang violance all around them, and moving around every time their single parent got evicted. Sometimes kids pay for the choices of their parents too. Unbanked is surprisingly common in the USA among those in the low to middle income brackets. Sometimes they bounced checks, sometimes they’re in ChexSystems, sometimes they don’t have good credit, sometimes they’re homeless, etc.
  2. A Friday post? My condo is cute. Super tiny, but cheap and cute. I’m enjoying it on Fridays and the rest of the time.
  3. Ah. Just saw someone mention CAIVRS, so I’m guessing you have a federal student loan. Federal student loans are different. Gov’t can collect on federal student loans indefinitely, even when retired. I would still see lawyer before voluntarily entering into payment agreements on 30,000 to see what options: settling, deferring, not buying a house and stalling the piper, income-based-repayment, etc.
  4. Private student loan or federal student loan? Private student loans can’t garnish your tax refunds or income— without a court judgement of default. Even then, there are limits. 30,000 is a LOT of money. Entering a payment agreement would surely re-up the statute of limitations, making it (again) collectible debt. Repaying old loans and entering into payment agreements shouldn’t be taken lightly. I would opt to not buy a house before I would willingly take on 30,000 in debt from re-upping the SOL on an old unpaid student loan.
  5. Already closed on the condo and moved in. Enjoying it and saving money doing it. :) Private student loan still unpaid, defaulted over 2 years ago. Didn’t affect my (very cheap) condo. Hope. Finally.
  6. Glad it helps spread hope. It will put me in such a better financial position saving half on my living expenses alone. My student loan defaulted over 2, but under 3 years ago. My mortage lender said any chargeoffs or collections in under 2 years would have meant no. I have a number of credit cards and store cards reporting positively, with a few of those having 2-3+ years worth of history. Score pulled at 655 also worked magic.
  7. Turns out I can and DID just buy a cheap condo. I close in a few weeks. Went to mortgage lender a few hours after posting this to get a pros opinion. Shockingly, was approved in-house for a mortgage. Immediately went to a realtor and put an offer one a condo I had been window shopping for online. Seller accepted within another few hours, they had lowered price yet again trying to get rid of it. Im shocked and pleasantly amazed. Still have to finish some things and sign on the line. I will find a person to take over my current lease. My rent/mortgage will soon decrease by HALF. All 302 square feet are mine! With that huge savings each month, I will start creating some savings and perhaps even consider eventually setting with private student loan once their offers to settle get better than half off so its in a range I have a chance at affording. Once settlement offers get to about 25%, or 12,500, I could actually have a chance at saving up for that with cost of living cutting in half. Hopefully. Mortgage company referred me to to a credit pro that specializes in settling private huge student loans for less. The two+ year mark was good enough for my small mortgage lender. My credit score they pulled was 655. Wrangled up a bit more savings from an old work retirement account that helped too. Also qualified for several new home buyer programs, that included downpayment assistance. Raise helped too. Had previous good work history for a year or more at least too. Had no other negative marks on my credit, other than obviously huge unpaid private student loan. Anyone who has found themselves strangled by private student loans like me: Your entire life isnt damned. You might be able to buy a house one day too, at least a very cheap one, as I just have. You might not truly have to pay your entire loans off (many private student loans send you letters for 25-50% off settlment after default.). There is hope, despite what the majority of people think- that were doomed forever. Were not. Gotta start packing for new home!!!
  8. My PRIVATE loan from 15+ years ago defaulted over 2 years ago, result of unemployment and huge minimum payments I couldnt keep up with increases of. $50,000 UNpaid PRIVATE student loan. Defaulted 2 years ago. Have not paid since; dont plan to. Settlment offers are half, which I obviously dont have- and at my low income level, never will. I have NO interest in setting up payment plans that would last for decades. Now I got a new job this summer, $40,000 a year. Previous annual income: <$20,000... finally have a $40,000 income here which is liveable. Have roommates, no car, no mobile phone, no iphone, no entertainment expenses other than netflix, dont go out to lunch, etc. Live as meagerly as possible. Current Bedroom Rent and Utilities (already have roommates, pricey city, already at one of the cheapest places): $1300 a month ALREADY RENTING ONE OF THE CHEAPEST ROOMS (BEDROOMS) FOR RENT IN MY CITY- I ALREADY HAVE ROOMMATES, AM VERY EFFICIENT WITH UTILIITIES, & LIVE CHEAP FOR HERE. Mortgage on a $40,000-50,000 dumpy studio condo I found in the suburbs: <$500 mortage and utilizes (super tiny studio, 300 square feet, utilities run <$150 on average for them total, add ~100 for commuting further) Savings: $3000 Credit card debt: $2000 Other loans and defaults: $0 Like I said, I dont plan to ever enter into voluntary payment plans for that UNpaid PRIVATE student loan. I simply could never pay off $50,000 plus interest as it keeps increasing with interest. I can never, realistically, settle NOT even if they offer me more than half off. Rent is pricey. Private UNpaid student loan of $50,000 defaulted TWO YEARS AGO. Realistically, Ill never be able to pay that off, and dont intend to try, as the numbers simply are impossible. I dont make enough income to settle or put a dent into $50,000 of a defaulted private student loan + APR. Can I ever quality for a mortage? A tiny condo with mortage in the surburbs would cut my living expenses by MORE THAN HALF. Like I said, I already have roommates & live in the cheapest safe room I could find. Suburban rooms for rent are maybe $100 cheaper, but then you add commuting costs. Tiny dumpy condo is safe enough, and very small at under 300 square feet mortage would cut my living expenses in half. CURRENT FICO SCORES: 610-650... if I pay off credit cards, I should at least hit 620-640 across the board by when I could realistically afford a condo (probably this winter).
  9. They also use blue envelopes for ID/income verification and card closure notices. Blue is a bad idea for them.
  10. I would definitely set up auto pay on all cards if I were you. That’s what I do.
  11. I use virtual cards on any card that offers them and have for years. Capital One virtual cards, however, suck. Ive tried to no avail to get their stupid Chrome extension to work. It doesnt. It wont verify my mobile phone number (that Ive had for 10+ years thats registered to my name). So, I cant use their virtual cards. I look forward to outgrowing Crapitl One as soon as I can.
  12. My TU Fico 8 that I got was 628 and Experian is 600. My Equifax was the highest at 655. I ordered those from MyFico last month. I haven’t looked at any of their other score models, just those Fico 8s so far. I don’t need a house/car so I just stuck with Fico 8s. I guess I don’t understand why my scores are weak with only 1 derogatory/chargeoff, no collections, and no lates on open accounts. I guess that chargeoff really (understandably) tanked my credit score a few years back. It was one of the apps like CreditSemase or CreditKarma that did throw a different fake score at me and suggest installment loans. I ignore their FAKO scores, and should’ve ignored their loan advice too. Their suggestions are probably sponsored to boot. I’m not really sure what else I can do to build a better credit portfolio, other than letting my current accounts age and the charged-off private student loan age off after it reaches 7 years. I’m working on my income, and that at least should double after I finish grad school (and my low paying gov’t teaching contract for free grad school). That should help my overall financial picture a lot too.
  13. Thanks. That explains a lot, my TU score is the lowest. I get "no open installment accounts" and "no real estate account info" on credit applications that pulled TransUnion earlier in the year when I was credit hunting.
  14. Thanks for the info on installment loans not something that would help me. Is my score hindered a lot by having/never going to have mortgages or car loans? Total of $1500 in credit limits available / I have a $0 balance carrying over regularly. Some months I do show a $50-75 balance on Capital One if the statement cuts before I pay it off in full. I should time my paying it off better. Each Capital One card limit is $500 CL. Capital One had increased my CL last year from something like 200 to 500 CL. Fingerhut is also a $500 CL, no balance on that account ever. I never use it. I have 10-15 inquiries from the past 2 years on each credit report. Half of those from the past 6 months. (I know, I screwed up there... my roommate who uses this forum told me that was way too many.) My credit rebuilding feels so stagnant. Same scores for almost a year, and I can't figure out what to do. I had though, before I got to this forum, that adding a few other credit cards was the answer. I know I should avoid any more inquiries for a long long time.

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