need help on credit?

Question

My sister have a lot of credit card debts because she basically charged everything and took out cash advances. The reason why she did this because she had no money . Now that she is working in a better paying job, how will she be able to pay off the old debts?

She already contacted a credit counseling, but she doesn't know how much she makes per year. She's a temp.

Answer 1

She needs to make sure all the credit cards are canceled and cut up. Then she times her average weekly paycheck by 52 and that's her annual salary. Credit Counseling is not always the way to go. With that on her credit report she can not get any other credit like a car loan or a house. She needs to pay it off herself. With credit counseling the debt will appear with a note stating "settled for less then full balance" which isn't good. She needs to just pay it off. She can set up payment arrangements with the creditor or the collection agency it's been sent to.

Answer 2

My husband had credit card debt when I met him. He was also using a "credit counseling service" that charged $40 per month to direct deposit his minimums out of his account. Since then I have canceled the service and managed to transfer all his balances onto credit cards with 0% intoductory interest rates. It's not the balances that are bad, it is mostly the interest. He had cards with 16% interest and 20%. My advice is to wait for an offer of 0% interest, transfer the balances over and pay more than the minimum each month. In a year when the 0% interest is over, just transfer to another card. As long as she doesn't make late payments or apply for cards all the time it shouldn't be a problem.

Answer 3

Your sister needs to make a budget that includes paying off the old debts as top priority. Then she needs to stick to the budget no matter what.

Here's a free download of an excellent ebook about budgeting - http://necessaryvirtues.com/recommends/mfl

I hope it helps!

Answer 4

your sister is in a tough situation. first, she must define what her objective is.

getting out of debt? preserving her credit? etc.

if she wants to get out of debt, then she can declare bankruptcy, refinance the debt, pay it back, etc.

if she wants to preserve her credit, then she should probably start to work 2 jobs and pay back the debt as soon as possible.

Answer 5

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