Need help fixing credit....dont know where to start....this is all so frustrating!!!!?

Question

Here is my situation: I am about 8k to 10k in debt, with really bad credit. 90% is medical bills that I could not help because I had no insuranse. The rest is unpaid bills like cell phone, electric co. etc, and 1 credit card that is wriiten off as "bad debt". I'm only 23 and i want to fix this so I can buy a home, car, and start buliding credit again. If I just start paying them off with what I can afford monthly (which would only be about $200 at most) thid would take years to start rebuilding. Im also getting married next year with no one to help pay for it, my fiancee's credit is just as bad. What is the best thing for me to do to be able to at least buy a home? I don't want to be in my 30's and still living paycheck to paycheck. ive heard of debt consolidation loans, but if you need decent credit to get a loan, how to you obtain one. I know there are alot of scams that would take advantage of a person in my situation and I want to find a reputable company to work with. help!!!

Answer 1

EXSOL's answer is so full of nonsense I don't know where to begin. Best to ignore it and start over.....

You have two issues. What to do about your debts, and how to fix your credit.

For paying the debt, start by seeing what sort of deal you can work out on the medical bills. Tell them your situation and see if they will work out a payment plan with you over a few years. They usually are more flexable with medical bills, as long as you make your payments and don't play games with them.


Then, with whatever you have left, negotiate with the other creditors and try to get the balance lowered, or if they will again offer a payment plan.

It's VERY important that you demand they REMOVE any negative information from your credit report. This does NOT mean to put "paid" on your account. It will still show negative information and late payments. This will still ruin your credit if it's left there. If they will not promise IN WRITING to do this, do not pay the bill. Concentrate your efforts on those creditors who are willing to help you.

As for credit repair....you don't need a lawyer. You don't need a credit repair agency. These people do exactly the same things that you can do. I've supplied a link below that goes into it a little bit.

Regardless of who does it, there is no guarantee that any credit item will be removed form your report. There are only two ways it can be done.

Either the creditor removes the item or they fail to respond to a dispute investigation from the credit bureau. If the creditor follows the procedure, there is absolutely no way to remove a negative item, and it will stay on your report for 7 years.

Answer 2

From a close friend's experience I can tell you that if your card has been written off as bad debt - it is too late to pay anything.

Now here is the important part if you are getting collection letters from third party collection agencies rather than the credit card company itself then you can negotiate a settlement.

The more the time passes they more they will waive off. By law once the debt goes into collection they can not any longer charge interest on it.

For example your 8,000 past due at 30 days they will want the whole thing - give it 12 months they may discount it by 3000 give it 24 months you may only have to pay 3000 only the remaining 5000 MAYBE discounted as an settlement.

Settlements is the only way for you to get rid of this thing and that too within 1 to 1.5 years.

If you pay lumpsome in settlements you get more discount if you work out payments you will end up paying more and some start charging interests again.

For 8,000 you can bring it down to as little as 10/week by claiming hard ship.

Now comes the bad part - no matter how much you pay, no matter what anyone tells you that some payment is better than outright default - the bottom line is your credit is screwed and what you pay or don't pay wont make a difference for better - it can however make a difference for worse.

How to repair your credit - this is a legal issue - don't get sucked into by the credit repair scams on Internet.

First and foremost settle your matter with the creditors do it your self they will be more sympathetic to you, rather than any one you appoint or a debt consolidation company.

Once you have paid off their debts and it is all over - you can start with credit repair. Now some people will say that it can be done jointly. I have seen it become more difficult while done simultaneously. So until and unless you don't finish off with your debt do not start repairing credit.

How does debt repair work - there are three major credit rating companies, and they have strict guideline that they must follow mandated by law.

Because of work load they do not follow all laws "negligence" - when they call, how many times they call, what they say and how they say it is all regulated by law.

You will need to find an attorney who is an expert in this matter and may cost you 500 to 800 (may be 1500 if you are like my friend who was neck deep in crap) remember work first payment afterwards for better results (see FTC tips in soucres).

The attorney will ask them to send all records and would review them to look for their "negligence" when he sees some thing he will follow a petition and everything is time sensitive - they will have 3 days for some matter and 7 days for the other to respond and etc . . . some where some how they will make a mistake again - and then would be forced to remove a lot of bad debt payment history.

In some cases you are also entitled to the deletion of the whole record and restart of the file.

Answer 3

Fixing your credit is the easy part. Right now you need to figure out your bills. Did you try to apply for government assistance on the medical? You can sometimes get help there. Also you can usually get really low payments set up with them if you cant get any help. I mean $20/month is better than you filing a bankruptcy and they get nothing.
First is to decide if you want to avoid bankrutpcy. If you do then you must contact everyone you owe money to and let them know your situation and tell them what you can pay.
If you and your fiance both ower 8-10 thousand dollars, maybe you should consider a chapter 7. There is life after bankruptcy. You can still buy a home and a car.
Think it through. Only you know whats best for you.
The important part to remember is credit can be repaired, for free all on your own.
Would be happy to answer anything I can. Have been through it all myself years ago.
Best of luck!

Answer 4

I totally agree with Studly.

Talk to the medical providers and see if you can get a discount and a payment plan.
If you are dealing with hospital bills, they may discount you. They also have lists of different charities that may help you.
Check with your local DHS office and see if they have any programs to help with the medical bills.

Don't ignore Studly's advice, regarding the rest of the bills, about demanding that any negative info is removed from your reports, or not added if currently not on there after the accounts are paid. Also, be sure to request to pay a percentage of the amount.

Answer 5

Go to www.daveramsey.com and get his book. "The Total Money Makeover"

READ IT TODAY. It has good advice about getting out of debt, which is the first step to rebuilding credit. But it will change how you think about money.

Good Luck

Answer 6

I used to get pissed off at not having the flexibility to repair everthing and anybody. Then I reported What the hell am I doing? Getting all under pressure over somebody elses problems....whilst i might desire to repair my very own. Stressbegone.........