Debt - What should I do???

Question

I am a 21 year old college student with about 9000 in credit card debt. I lost my job for a while and fell way behind on all my bills - now I have collection agencies calling me all the time and threatening me...I even had two lawyer offices call me this week!! I talked to a lady at CCCS, and she was going to set me up with a payment, but I am concerned because I am a full time college student and don't know how long I will be able to work full time while going to school. If I move to part time I would be unable to make the payment required and they don't re-evaluate your situation. I am trying to reason with my creditors but they don't give me the time of day or any options. I don't own a house or a car, what should I do???

Answer 1

they'll hassle you forever unless you get some debt consolidation people to pay it off for you, i was in a similar situation, go here to find some certified firms:
http://debt-consolidation.50webs.org

Answer 2

I'd contact the credit card companies personally, ask to speak (DEMAND IF YOU HAVE TO) to the manager/supervisor (noone else), and see what could be worked out. Explain your situation-that you lost your job, and that is why you fell behind, and that you were so embarrassed/ashamed? or whatever that word is I'm trying to think of-similar meaning, Due to you being a FIRST-TIMER. Sometimes they will give you a 6 month "grace" period--but also put a "Hold" on the credit card, where you couldn't charge any more. Be assertive about what you can and will pay. Let them know you can only afford X amt per month. If they agree to lower fees, or whatever, make sure you send a letter to the person in the company stating what you both said in the phone call. Example:

Company Name
Address
ATTN: Person Spoke With
City, State Zip Code

Dear, just their name, whatever you decide:

This is to confirm what was agreed to, in regards to my payment plan, which was (blank amount) for the next (blank number) of months.

Could you please sign, date, and return the enclosed copy for my records?

Thank you.

Your Name

Enclosure

Just an example, but I hope you get the idea.

Next I'd call the 3 credit reporting agencies, Trans Union, Experian, and Equifax. By law, you have the right to put a 100 word statement in your record explaining WHY you fell behind. You were laid off from work, which caused financial hardship, and you are young, and in college, and this is your first time experiencing your own credit card debt. (I hope I didn't offend you, just taking what you said.)

If you, yourself, can't write it, then someone from those agencies are required by Law to help you write it.

Get started on this ASAP, because once you ruin your credit, it is hard to overcome. And at your age, you can fix this problem so it
won't ruin your future.

Let them know once you graduate, you'll have a nice paying job, and will, definately become more responsible with the cards.

Hope this helps. Sorry so long.

Answer 3

The first thing you must know is that creditors will tell you just about anything to get you to pay your debt. You could probably get away without making payments for a long time before they would actually take you to court. I don't know about the law in your particular state, but in the state I live, they cannot do anything,(garnish wages, attach liens to property, etc.) unless they take you to court and get a judgment. And even then, they can only garnish a percentage of your wages. Don't let them scare you too much. In fact, I wouldn't even talk to them. A lot of creditors will leave you alone as long as they are getting something, even if it is small payment. Be wary of consolidation programs. Some are okay, but others do not help you at all. If you decide to go that route, research them carefully. Another option is to file for bankruptcy. Despite the fact that the law has changed, you can likely still file. See what the median income is for your state. If you make less than that, you pass the median income test, and can likely file. I know it seems like a bad thing to do, but I have had a lot of clients who can obtain more credit after filing bankruptcy than they could before they filed. $9000 isn't a lot of debt, so you probably should hold off for now, but it is an option. You may want to consult with an attorney in your area, and see if you have any other options. I hope it all works out for you. Don't let them intimidate you. You can't pay what you don't have.

Answer 4

You can put a stop to the calls immediately by telling them you want all contact to be via mail. If they don't honor that, you can sue them for harassment. If you go thru CCCS and they set something up - you have to have something you know you can live with or don't do it! Once CCCS is involved - don't listen to them when they say it doesn't effect your credit rating because it does! Either start making payments or file bankruptcy. You can go to a consult with a bankruptcy lawyer or a financial adviser and they will usually be straight up with you on whether you should just file bankruptcy or keep trying to pay off your debt.

If you file bankruptcy, it will follow you for 10 years...better that than insanity! Tell the creditors if they don't set up a plan, you will be filing bankruptcy and see if they will talk to you...if not, your choices are pretty limited. See if you can't consolidate your bills - if someone will take that risk with/for you...that is about all you can do...or put school on hold and get your financial act together best you can then start school again...or just know you are going to work your butt off for a while and do the best you can with both working full time and school...best case scenario...move back with mom and dad if it is an option and go to school at a local junior college while working off your debts...

Answer 5

First thing to do is to tell the collection people to stop calling you. second try to deal with your creditors, explain that you are only working part time, ask them to cancel the cards and stop the interest from accruing. set up a reasonable payment plan with them. I know all this sounds impossible because the people on the phone all seem irrational ( ask for a supervisor). If none of your pleads work threaten to file bankruptcy (where they would recieve nothing). and lastly but most important pay on the bills even if it is just $5. In most states the company can not successfully sue you if you are making a good faith effort to pay.

Answer 6

Go to them and tell them that you work part time and set the payment plan according to that.They will talk to your creditors and eventually the calls will stop those that do call tell them to call CCCS. Don't leave any one that you owe out when you list your creditors . Those Lawyers will threaten but just blow their smoke but don't worry the first thing you know you will be out of debt(Unless you Go back in debt while you are trying to get out) It will still remain on your credit report for 7 to 11 years but that is the price you have to pay. I know BEEN There DONE That $250,000 Wife got laid off and I was in the Hospital. But it all worked out. KEEP THE FAITH

Answer 7

Linzel, you have created a nightmare for yourself. I'm sure you didn't mean to do this, but it is still a reality.

First things first, though. Anytime you receive a collection agency call or letter, write them back and request a "cease and desist". Once you do that, they are not allowed to contact you again.

Afterward, ask the creditor to settle the account for less than the amount due. If your accounts are charged-off, many creditors will settle for 50% of the balance.

It will take some time for you to recover from this condition, but you will Try to avoid filing bankruptcy, as it stays on your credit file for 10 years. Delinquency only lasts for 7 years,

Answer 8

Try to consolidate your debt with getting a loan from the bank (if possible). Cut up all credit cards.

Or, file for bankruptcy.

The big thing is to stay away from credit cards. Also, look at your situation.... if you have cable, i-net, or any other 'housing extras' perhaps do without until you can get your finances into shape. Also, if you're renting find a roommate to split living costs.

Hope this helps!

Answer 9

From what I know. You should not get a loan. People whom apply for loans that have debt, tend to receive high Interest. No point in paying your bills + a loan. Set your spending priorities straight, realize what are your necessities and your needs. Spend money only towards your debt. If any money is left, save it or spend it wisely. Long term products. I agree with the guy about getting rid of cable and other accessories to the home. Focus on the important things.

Answer 10

I agree with the first person, get a full time job for a while, just so you can get a bank loan, then cancel those credit cards and make sure you keep up with the loan payments. Also with having only one loan, the payments will be less and will make it easier to quit your full time job if you need to. I hope you learn from this now and get ahead financially, dont waste most your life working so you can give your money to the banks.
Goodluck!

Answer 11

I would see about filing bankrupcy on the credit cards, it seems like your best option, the only crazy thing about that is you need money to pay an attorney to tell the credit card companys your don't have any....kind of ironic isn't it....It costs around $500 to do it , if you can get that much for an attorney, that is what you should do, in my opinion...good luck