I'm only twenty and in debt over my head?

Question

When I graduated high school I was in an abusive relationship. Five years my senior, he convinced me to get credit cards he maxed out, and then forced me to drop out of school. I got away with much help from my family, but now I have collection agencies calling me, threatening to turn me over, telling me I need to pay half of my debt from school by the end of the month. I am currently in school, I work as a waitress and live with my parents. I'm barely making ends meet trying to pay for school... Im probably $10,000 in debt... What should I do, right now I just feel like crawling up in a hole... I'm only twenty years old and I feel like I ruined my life...

Answer 1

I would get a copy of your credit report and try to clear up any wrong information, and dispute any negative information. Then I would do my best to get one loan to pay off all of the credit cards at a far better interest rate. Either through a bank or family.
The other option is to just not pay them. The collection agencies cannot get blood from a stone, however your credit will be horrible for quite some time, making it much more difficult and expensive to buy a house or a car.

Answer 2

I have been saying this for a long time. Before declaring bankruptcy start by paying any current credit cards on a bi-weekly basis. Take the minimum payment and divide that by 2. When the bill arrives pay the first half and then 2 weeks later pay the 2nd half.

Now as far as collection agencies go. Make a settlement offer with them. They will usually take anywhere from 40-50% of what you owe. Sometimes less. If you have a copy of your credit report see what bills are reporting over 2 years old. Do not update your credit report. The bills that are over 2 years old and not updated keep it that way. These will eventually fall off once they turn 7 years old. Any collection agent that makes threats you can report to the Attorney generals office. It is illegal for a collection agency to make threats and/or harrass you. They can not threaten a lawsuit on behalf of the company you owe. They can not tell anyone else about your debt and that includes family members.

Bankruptcy can remain on your credit up to 10 years. The longer on your credit the less weight it will have. You will need to file a chapter 7 since you don't own a home. This will wipe your debts out. I would try the plan first by paying your bills on a bi-weekly basis.

Answer 3

Never file bankruptcy!!! I believe filing bankruptcy will be listed on your Credit Report for life. Talk to a financial advisor. You should be able to find one by consulting Banks or Financial Investment Firms (I have had good luck with Edward Jones or ask your parents if & who they use). Ask them to recommend a good Financial Advisor. Not only will they help you get out of dept they will give you suggestions as to the best way to handle your finances thru college and down the road.

You are fortunate that you are learning this lesson early in life. Most people don't hit a wall until after they have kids. Once you get out of dept never go into dept again. Be money wise, not dept foolish.

Often the person that looks like they have money is the one with greater debt. On the reverse side people that live by simple means are wealthier than what most people would imagine.

Living life with out dept is a much more rewarding life.
Thanks for the memories,
BirdDog

Answer 4

A debt of $10,000 is not the end of the world. Talk to the credit card companies and try to get out of part of it. Otherwise, make a payment plan with them that you can manage. That way they won't keep calling you. And, in general, avoid debt altogether in the future.

Answer 5

Call your consumer credit counseling agency in your area (or look it up online). There is no charge for this and they can help you get back on track. I'm proof. I had 12G's is debt and with some diligence and a helpful credit counselor I was able to get my finances righted. Do it now, you have to be proactive and not reactive to your debt.

I know you are stressed out (money can do that) but you are young and have plenty of time to fix this.

Good luck

Answer 6

I am really sorry to hear that but you do have a chance to start over and learn from mistakes. I would start by making a appointment with a financial advisor and just go from there.
They will help you to get back on track. Good Luck!

Answer 7

Im sorry to hear that, I hope this team could help you out. They're the same team my family would run to whenever we experience financial/credit troubles, might as well check with them

have a great day, I know everythng will be okay soon

http://www.newhorizon.org

Answer 8

Hi there,
Please, seek the aide of a debt consolidation company. Get an updated copy of your credit report, go through it with a fine tooth comb, figure out what should be there and dispute what should not be there. If you find you have any issues with identity theft or need an opportunity to generate more money please go to my website: www.prepaidlegal.com/hub/kvmclish to see a present ation or call 1-800-394-6919. Please e-mail me back @ [e-mail] with your feed back and any questions. Good Luck!!!!

~Kay.

Answer 9

Declare bankruptcy and start over, and learn from your mistakes