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gyrosad

Probably the worst case of bad credit you'll read, and no hope :(

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I'm not even sure of where to start with this. It's very shameful, and I never thought I'd get to this point.

 

The fact of the matter is, is that I'm beyond lost on what to do here. I moved to Arkansas a couple years ago, and when I did, my credit score was around 650- not great, but not really bad, either. I was proud that I didn't have bad credit.

 

Now, it's below 500. I'm 18k in debt- from verizon wireless, at&t u-verse, student loans, a local property management group (still owe money on a lease), paypal credit line, capital one credit card, and a Dell credit line, and my auto loan (I've actually done pretty good on that one), and completely in over my head. I have no idea on what I should do.

 

Should I contact a debt consolidation company? Or claim bankruptcy? How do I know what is the best choice? Is there any kind of easy fix?

 

I guess the worse part about all of this is, I don't have the money to pay them all what they want me to pay every month- we live in low-income housing, and i'm barely keeping up with my car payment. I'm so overwhelmed and lost.

 

My fiance' and I dream of owning our own house one day, and getting our financial affairs in order, but I don't even know how to go about it.

 

Someone, please help!

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Hi and welcome to Credit Boards Gyrosad. Credit repair begins with lots of reading in the newbies and Whychat section. Also read the Psych Doc's seminars. Many folks here have had worse credit problems than you but through hard work they have pulled themselves out and into good credit standing.

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Keep your Chin up as an OG here advised someone, read, read, read, ask questions , follow up. Don't give up.

It will get better for sure.

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Davebramsey dot com. He is not the only one, of course, but his version of the pro-data debt repayment could help you get started. Can you take a second job? Newspaper delivery? Part time fast food, anything to help you get a little progress. Once you see a little progress, it's easier to have hope and keep going.

 

Also check out the Living Beneath Your Means board on fool dot com. Lots and lots of ideas to cut expenses, no matter how well you're doing at living cheaply already.

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My ficos were in the low 400's before bankruptcy. There now in the mid 600's only a year later after discharge. I'm not indicating bk is the way to go, just simply stating with hard work to get your self back on track anything is possible.

 

 

No hope? Don't say that.

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If you're ready to face the issues there is hope.

 

Read this site and decide what you need to do. Many of us decided that bankruptcy was our only way out. Other people have been successful with other options.

 

Deciding to do something is the first step.

 

Good luck. People here will pull for you and are willing to help.

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18K in debt is not much, heck I have abou 22K+ in debt and I will never think about bankruptcy. Call your creditors and tell them your situation. My auto loan is past due 5 months, and they will not reposses it because I try to make payments even if its just $25 out of $300 a month. I also work with their account specialist that helps me keep on track.

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If you're struggling in low income housing, your problem isn't debt but, lack of income.

I'd stop worrying about a credit score and start figuring out how to make some money. The 2 of you need second jobs and pt jobs. If there is equity in the car, try and sell it and see if you can buy a beater for cash. Those student loans will survive bk.

How much do you owe on the car and, the student loans. Those are your priority.

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If you're struggling in low income housing, your problem isn't debt but, lack of income.

I'd stop worrying about a credit score and start figuring out how to make some money. The 2 of you need second jobs and pt jobs. If there is equity in the car, try and sell it and see if you can buy a beater for cash. Those student loans will survive bk.

How much do you owe on the car and, the student loans. Those are your priority.

X2 look into night jobs if you can swing it, waiting tables pays decent in tips. Even bagging groceries. Don't give up hope OP!

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You may want to create a spreadsheet listing out more of the details

  • Company Owed
  • Current Amount Due
  • Current Interest Rate

Maybe you can score a few quick hits by closing out the smaller amounts and then work on the higher interest rate items. Maybe even negotiate a lower interest rate. There's a lot of options but a list will help you as you read through the beginners section.

 

Good luck! Keep your head up!! You will make this happen!

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OP, give yourself some time to explore all your options and to come up with a plan. A number of years ago, I managed to get myself into a $28.629 credit card debt hole. Fortunately, with some financial juggling, I was managing to keep my accounts current (using one card to pay another).....but, my outstanding balance was not going down. I went to CCCS for a review of my situation. CCCS was not able to come up with what they thought was a realistic, long term, budget to pay off my debt. I went to see a BK lawyer next. I finally decided to bide my time and work on lifestyle changes that would free up income. I junked out my old car, that was needing endless repairs, and started using the bus to get around, I was able to get a modest raise at work after taking on more responsibility. Once my cell phone contract was up, I canceled my service and went to prepaid cell phone that I would only use for short calls that needed to be made Started using Library for my internet use. To make a long story short, I paid off every cent of the debt, including all the interest. It took me 55 months. I likely would have had the debt paid off in 45 months, if it was not for a major health related (dental) expense that came along. It was very hard in the beginning for me.....so much of the amount of my payments to the credit cards went for interest. I found for myself, that it was very important for me not concentrate on the total amount of the debt.....but, instead to make a short term (3 to 5 month) debt reduction goal and concentrate on that number.....once the goal was reached, set another. When I reached a point where 30% of the debt was paid off, I started to actually think that I would be able to get out of debt.

So, OP, what I did may not be realistic for you to do......I am only suggesting that you give yourself a bit of time to explore what might be possible for you and what might be your best plan of action.

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Believe me, you definitely do NOT have the worst credit/debt problem out there! : ) Are the student loans currently in default? If not, and they are government loans, as opposed to private, you may qualify for income based or income contingent repayment, which could make your payments as low as zero dollars a month, depending on your family size and income.

 

Good luck!

Edited by RedHairedLady

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That's where I am at with my student loans. Since I am a single father with two kids, my student loans are in deferrment. My credit score is starting to come back up after a BK, I'm around a 640 right now. I have a couple of small credit cards and keep them for mostly credit building use (put something on it, pay it off).

 

One of these days, I'll make enough money to start paying back my student loans....

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It's very shameful, and I never thought I'd get to this point.

 

 

 

 

Is there any kind of easy fix?

 

There's no shame to being in debt unless you got that way by doing something like scamming old ladies to pay for your addiction to underage hookers. Stuff happens in life... mistakes are sometimes made, and we wind up in debt. It doesn't mean you have to feel ashamed, especially if you're now trying to make it right.

 

I would caution against going for any "easy fix". It took a while to get you to this place and it may take a while to dig yourself out - but it can be done. You seem overwhelmed now, but before you even consider professional debt consolidation or bankruptcy, do a written analysis of all your debts, assets and income so you can figure out exactly where you are.

 

You have a roof over your head, a car, and two of you to earn paychecks (assuming your fiance is contributing). That's good. Don't panic - this can be fixed.

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If you're struggling in low income housing, your problem isn't debt but, lack of income.

I'd stop worrying about a credit score and start figuring out how to make some money. The 2 of you need second jobs and pt jobs. If there is equity in the car, try and sell it and see if you can buy a beater for cash. Those student loans will survive bk.

How much do you owe on the car and, the student loans. Those are your priority.

 

Bingo.

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