I have bad credit. But, I want to get all my debts paid off I have about 6,000 in debt and then another 6,500 in bank debt. I really want to pay this off. I contacted a company but, I can't afford 590.00 a month on top of bills and rent. I work hard I have been at the same job for 3 years and I am a good person just was young and dumb but, now that I am getting older 26 I want to take care of it. I was in debt alot more but paid alot off. I just want to get it paid off my the middle on next year. So can anyone seriously help me and point me in some kind of direction?
2006-11-17 17:28:55 · 5 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Paying off 13,000 in 7 months (middle of next year) means you are going to need to pay $1857 per month toward your debt, not including interest.
Set a more realistic goal. Like 2 or 3 years. Not counting interest, $361 per month could get you there in 3 years.
Call the lenders and tell them you are having a financial problem and ask them to suspend or reduce the interest. You might get lucky, otherwise pay $361 every month PLUS the total monthly interest.
Avoid the temptation to pay less after a few months goes by and the required payment goes down. Keep paying the fixed amount.
Got a tax refund coming? Put it to the debt.
Christmas $$$ from mom? Put it to the debt.
Brown bag lunch instead of eating lunch out.
Library instead of bookstore.
3 blankets instead of turning up the heat.
Are you getting the picture?
You have been living large, now its time to pay for it.
DON"T CHARGE ANYMORE! This is where most people mess up. Every $100 you charge puts you anther week behind schedule.
If you have stuff you charge that you can return, return it to the store. If you have stuff that you can sell, get on ebay and sell it.
Time you spend at work is time you won't be buying things. Ask for overtime where you work. See if they will buy back your vacation time.
Otherwise... get another job to make things go faster.
Live lean for 3 years and you'll be really happy you did! You don't owe that much. Some people need a 10 year plan to get even. I was one of them. Life's better now.
If you do it, in 3 years you'll not only be debt free, but you're credit score will be ABOVE average.
Start now.
2006-11-17 17:55:28 · answer #1 · answered by John L 5 · 0⤊ 0⤋
You really need to learn about the best way to resolve your debt if it has been charged-off. Here's what happens: if you pay on charged off debt, it will stay on your credit report for seven years past the last date of activity. that means that if it takes you until you are 30 to pay it off - it will be until you are 37 before it stops impacting your credit report. You should find a way to resolve it, but negotiate with the credit owner about a settlement and also negotiate whether or not the debt would be reported to the credit reporting agencies.
On another note, if you want to try and borrow at a lower interest rate, you should go to www.prosper.com - it's people helping people and you might be able to refinance some of your debt.
2006-11-18 09:00:56 · answer #2 · answered by Peter 3 · 0⤊ 0⤋
If you borrow money to pay off your debts, then you have a new debt - the money you borrowed - to pay off. But depending on the interest rate of the new loan, your payments on that might be less than on the current debts. If you borrow $13,000, you're not very likely to get that paid off by the middle of next year.
2006-11-18 01:38:20 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
There is nothing 'magical' about paying off your debts. You either have to earn more money (e.g. get a second, part-time job) or allow more time to pay off the debts.
Many people work more than forty hours a week. For example, most professionals and most self-employed people work 50-60 hours (or more) every week . So a second, part-time job is possible and a realistic way of meeting your goal.
Best wishes and good luck.
2006-11-18 01:35:02 · answer #4 · answered by Doctor J 7 · 1⤊ 0⤋
Try this company TCC . Its a Credit Co-operative, a non-profit financial institution different from Banks and Finance Companies they have a consolidated loan which you show them your debts statement. Try the website https://tcc.org.sg/index1.htm if you a singaporean.
2006-11-18 01:35:25 · answer #5 · answered by adzaimale 1 · 0⤊ 0⤋
hi
2006-11-18 10:12:02 · answer #6 · answered by Anonymous · 0⤊ 0⤋
you can try borrowing at prosper.com.
2006-11-18 09:20:46 · answer #7 · answered by Anonymous · 0⤊ 0⤋