Tell me how to get "un" "royally screwed"?

Question

Before I begin let me just be completely honest. I have just up and left two apartment complexes, I am on chex systems because I owe 200 to one and around 600 to another bank. When I was 15 my "mother" used my s.s.n. to get some cable and phone turned on without me knowing. I moved out when I was 16 on my own with help from boyfriend then tried without any help from anyone and made some bad decisions which is why I couldn't pay my rent at two complexes and pay back my overdraft fees to two banks. This all happened 2 years ago and I am totally different know, trying to build some credit and get some money saved up so I can pay everyone back. I realize what happened was very dumb but what would someone here that is extremly good and smart with money suggest I begin doing?

Answer 1

I agree with snoogans, except for the 'calling' part. Never call the creditors and try to make deals, do that by mail and send it certified mail return receipt - papertrail, papertrail. If you come to an agreement by phone, you have nothing to back up the agreement should they not honor their end.

First thing you should do is opt out. Keep collection agencys from shopping in your credit files (yes they do shop through peoples files for bad debts) 1-888-5-OPTOUT (567-8688)

Then get your reports from each credit bureau and clean up your personal info, delete old address, phone numbers etc incorrect spellings of your name, address etc.

Then figure out the more important things to pay and start with those. Send debt validation letters (certified mail return receipt CMRRR) to collection agencys and debt verification letters to original creditors (CMRRR)

After you get the response, send pay for delete letters. Request to pay a percentage of the amount. Request that after payment that they will not continue to collect the debt or the remaining portion of the debt, that they will not sell the debt or the remaining portion of the debt, that they will delete anything they have placed on your files.

Depending on how bad your credit is, you might be able to start rebuilding your credit.

You might go to the site I've listed. Do some reading in the newbie forum and then in the credit forum. Learn how to deal with the creditors, the credit bureaus and how to rebuild credit.

Everything on that site is free to read and use.

Answer 2

Write a letter to the credit bureau (all 3 of them) pointing out that credit was obtained fraudently using your information, that you were a minor and as such it was impossible for you to obtain credit at that time. Do that in writing, mail it return receipt and they have 30 days from receipt to verify and clean the records or remove the misinformation from your record permanently. As for your bad debts, work on paying the smallest first then snowball effect the remaining by taking the payment that was applied to it and usae it to retire another debt by paying it on the outstanding balance until that too is paid.

The last thing you need to do now is move in with a boyfriend. Find a relative or someone that will rent you a room for a while until you can get things right. Patience will serve you well and at your age it will be a struggle to learn. But if you are to be successful you MUST make a plan and stick to it. You have bad examples to overcome in your mother. I am sorry for your experience and the failure of mother to do right by you. However you have choices to make, and I applaud your desire to do right.

Work the debt snowball and you will work thru all this crap. Once things are settled and paid (and they will be paid sooner than you think if you follow the plan) you can re-apply for credit with an apartment. Get a 1 bedroom, live by your self and do not co-sign nor take on others financial or other responsibilities- ever. You need time to grow up and figure out who you are and who you want to be.

If your dad is not a total loss or durnk or druggie, see about rekindling that relationship as it will help you learn about relationships with men, an better serve you in life. Then reconcile the best you can with mother but again do not take on her problems. You have to live and make your life the best you can, and you may want one day to marry. Don't take baggage into a marriage or it too will fail. Show people that you are different. Don't buy what you want, buy only what you need. It will cahnge your life.

Answer 3

i suggest that first, go and face your demons.
go to the banks and also to all your creditors and ask them what's the status of your accounts.
since its two years already maybe some of the money that you think you owe, it has been written off. Specially the rents, the banks have longer memories.
Once you know what you really are up against, visit them again an ofert a "compromised" agreement, in wich you agree to pay back, in condition that they will erase your bad record.
We all do dumd things in life, and some of the biggest defaulters in credit, today are running multinational corporations and even are in goverment.
Some people get in economic dificulties because they take risks, in you case, you made wrong desitions.
Smile to life.. you look great, and you seems to have the good intentions in life and obviously you have learned.
If you think that the odds are too much against you, just cross the border and start anew.
Financial advisers are paid profesional that work for a living and get their earnings by making money FROM you.
the usual advise, once they know that now you can pay, its get some credit somewhere, pay your bills and get a BIG comission for themselves.
i charge you only ten points.

Answer 4

Live as cheap as you can and work as much as you can. Live with friends if you can to save money and pay off your debts as fast as you can, especially the bounced checks cause that could land you in jail. If your not already paying on those checks see about setting up a payment plan if one is available.

Stay away from credit cards, at this point you could only qualify for the one's with 25% or more interest and these cards are just traps. You can never get them paid off.

Don't beat yourself up over it, everyone makes mistakes especially when they are young. You could file fraud charges against your mother if you were so inclined.

As far as I know all that stuff, except the bad checks, will drop off your credit report after 7years, unless your looking into a very large loan. At that point you can get a small loan and start working on building your credit.

Stay away from new cars, they depriciate faster than you can pay off the loan, very bad investments. It cost a lot less to buy a used car for a grand or two every year than it does to buy a new car. That's what I do, this way you can have 2 cars at all times in case one breaks down. You will pay less in repair bills or even in just replacing the broke down car with another used care.... then you will with buying new cars. Not to mention the money you will save on insurance.

good luck

Answer 5

First and foremost congratulations for facing the issue. The SINGLE most important aspect of owing money is communication - most people feel embarressed or guilty therefore don't speak.

I suggest you contact the people you money to - even if it's by phone and you open dialogue with them explaining what happened and how you want to make things better.

Even if the repayment plan is low it shows you are making an effort and as long as you stay in contact with them they will be more understanding. Hiding your head in the sand just does not help.

If you find you can't make a repayment you must contact them before it's due and explain, do not wait for them to chase you as this will just wind them up and make them angry.

Good Luck.

Answer 6

well, my husband had the same sort of problem, but much much worse! we had to save up money to pay people off, and even had to take out a loan to pay for part of it (which i wouldn't suggest you doing since you don't owe too terribly much). i don't know how you feel about your "mother", but if you have proof that she used your ssn, she can go to jail for identity theft!! but to fix your credit, first off you have to pay off who you owe. check your credit report and score to see just how bad off you really are...it might not be as bad as you think. if you know for sure that you can use a credit card wisely, then that will build your credit quicker than anything. charge only what you know you can afford per month even if it is only $10 or $20, then pay it COMPLETELY off every single month. don't let it ride over no matter what! you have to use your credit to build it. it's like sex...if you don't use it, you lose it. you just have to make sure you pay your bills ON TIME and IN FULL every single month. just don't rack up too many bills b/c the credit bureau will think you're being irresponsible if you have more bills than you have money to spend. it really sucks, but you can ruin your credit very fast and very easy, but it is very hard and takes a long time to build it up. don't try to rush it cause if you do you might make mistakes. it can be as soon as 6 months or as long as a few years to fix your credit, but when you do, you will be glad you spent the time and effort to do it! also i noticed one of the others answered that creditors will make settlements for less amounts, but i'm here to tell you, if you do that it will stay on your credit longer! if you can possibly pay it off in full, you should do so. let a settlement be your last resort! take that advice from someone who has been dealing with this very problem for the entire 3 years of being married to my husband and trying to fix his credit for him!

Answer 7

I'll bet that in your world that you know a smart & good person who understands money and people. People are happy to help when someone sincerely asks & is ready to do what is suggested. Also, thre are financial advisors who are helpful. Below I list a website for an attorney. You are dealing with your financial health and well being. Talk to someone who can REALLY help. Don't be afraid to talk with someone whose profession is money. It shouldn't cost you much if anything. :)

Answer 8

pay it off even if it is a little at a time a little effort goes a long way plus you dont want to get taken to court, you will get charged with all the court costs on top of what you already owe then if you dont pay that you go back to court and so on

Answer 9

It really depends on how much you owe. You need to calculate how much you make VS how long it will take you to pay off debt. You also need to take into consideration how much your current monthly expenses are so you don't end up right back where you started. It is all about cash flow. How much is coming in, how much is going out and how much you debt you need to pay off.

Answer 10

I feel your pain...thankfully you are young. No matter how bad it gets you should communicate with all parties involved in your credit issues. You'll get passed this...I did. Listen if you want to read and learn about financial and credit visit http://www.mycreditadvise.com
My wife and I learned quite a lot from here!
Good Luck