I am about $10,000 in debt, both credit cards and medical bills. I think I have a total of about 6 or 7 credit cards. I am a college student who makes less than $2,500 a year. It's really hard for me to find a job and the job I have is just a work study job on campus. I have collection companies threatening to sue me for my debts. I am currently paying a collection company but there's no way I can pay them all. I only make like $250 a month and I send pretty much all of that off to bills. What will happen if I don't pay these creditors and their collectors? What should I do?
I will appreciate any advice. I am very desperate for help!
2006-11-27 06:49:30 · 10 answers · asked by Anonymous in Business & Finance ➔ Credit
First, don't quit school, you can take care of this while going to school.
My first question is why are you working so little while going to school? Do you play a college sport? If not, I worked 25-30 hours per/week and kept above a 3.0 GPA all through college. In fact, my grades improved when I was busier because I had to budget my time better. All my college friends worked 25 and some 40 hours per week with a full load of classes.
I think you have a job problem, not a credit problem. Example: go to Target, get a job for about $7/hour and work 20 hours=$140/week and $560/month after taxes you will make around $420/month. If you have the skills to wait tables or work 2nd shift in a factory or work really, really early in the am loading boxes for Fed Ex or UPS you will make MEGA money. Plus, are you going to school 12 months a year? If you take the summer "off" from studies, you should be working 2-3 jobs! Wait tables, deliver pizzas, load boxes, work in a factory, etc. You can easily make $10,000/year part time doing something besides work study!
Go to www.crown.org , www.daveramsey.com or www.suzeorman.com for more information.
2006-11-29 00:14:07 · answer #1 · answered by mldjay 5 · 0⤊ 0⤋
Hi ...
If you don't pay, you will likely receive a default judgement against you (if you don't go to court). That means that part of your income will be garnished. IF you go to court, you can ask the judge to consider your situation and he might then calculate a monhtly paymetn for you that takes into consideration basic living expenses.
Now, you can try to settle the debt yourself. You have to have a thick skin for that as the creditors will threaten you quiet a bit. What you will do is call the credit card company/collection agency and say that you want to settle this but you only have let's say 40% of the balance. IF they don't take it, you will offer it to the next company. You further could say that you are only a student and you are not expecting to make any money for another 3 to 4 years and in order to put you in the right position financially you are considering BK. Sometimes this will scare them and try to get what you offer. You should talk to a NON-PROFIT debt relief program. Make sure it is not one of those scams that take your money and then don't do anything for you. Do some research online...pick a non for profit agency to help you.
2006-11-27 14:59:53 · answer #2 · answered by Hawkeye_de 1 · 0⤊ 0⤋
I wish 10,000 was all the debt I owed. Thats nothing. Get a job and pay it. If you put your mind to it, you can do anything, even getting a job. Yea, youll have to cut out fun time, but people need to start realizing life isnt all rainbows and flowers. There is a thing called growing up and having responsibility. Stand up and be and adult. Get out there and be a contributing part of society, not another welfare canidate.
2006-11-27 15:02:46 · answer #3 · answered by Beavis 2 · 1⤊ 1⤋
IMMEDIATELY...contact Consumer Credit Services...preferably thru Catholic Charities (and, NO, you do NOT have to be Catholic). They will set up an appointment with you and go over all of your bills, and income information...then THEY will contact each of your creditors and get your interest dropped, and re-negotiate the terms of your payments. Once this is set up...you will make ONE monthly payment to the CCC and THEY will split it between your creditors...the creditors will not be allowed to contact you or harrass you in any way. I wish you luck. By the way...this service is FREE! Avoid ones that try to charge you
2006-11-27 14:56:12 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Call the company's you owe money to and offer them to pay anything even $5.00 a month and the collections agency's will stop and they can't do nothing about it until you finish school and get a job that you can afford to pay.
2006-11-27 14:56:18 · answer #5 · answered by aguilucho12003 1 · 0⤊ 0⤋
You may have to go bankrupt but I would cut those credit cards up especially if you cant afford them. You need to get a finiacial coach. So they could assist you with coming up with a plan on how to get out of debt and stay out of debt
2006-11-27 14:58:47 · answer #6 · answered by Jaime T 3 · 0⤊ 0⤋
Go to a credit counselor, check them out thoroughly.
CCC or Money Management International are good.
With that much debt and so little money coming in you may have to file for bankruptcy...let's hope not.
If you are young and in college...do your parents know about this?
If they don't, let them know....it will suck to be sure but they need to know from you. They will find out eventually.
Good Luck and I think pleasant thoughts for you.
2006-11-27 14:56:50 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Well, Education is important and nothing can take away that obligation. But, if you ruined your credit, it may be ruined for life. If you can, perhap, take one semester off and try to get a job.
2006-11-28 03:36:04 · answer #8 · answered by a9113257311 3 · 0⤊ 0⤋
1. they can sue you and get a judgment against you
2. if you let it go, they can still send you letters but after 7 years it can't be on your credit report anymore
3. you could file for bankruptcy
2006-11-27 14:54:36 · answer #9 · answered by Caitlin 5 · 0⤊ 0⤋
Perhaps you should contact those debt consolidations places to help with this problem
2006-11-27 14:53:33 · answer #10 · answered by Anonymous · 1⤊ 0⤋