I have bad credit and have not been able to make payments for the last 4 months. Now I have all my creditors asking for they money I owe them. I have a better job, but it will be a while before I can make enough to send them. I have tried applying for home, personal and debt consolidation loans without success. I do not do well by taking on another job and I only have until the end of the month to make a minimum payment to each creditor which amounts to more then I have after pay day. I am paying rent and my car loan so anything else I have left is not much to work with. What can I do?
2007-01-11 01:18:58 · 14 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
you must see a credit counsellor(look in the yellow pages).....stick to the plan they set out for you....good luck
2007-01-11 01:22:40 · answer #1 · answered by Foss 3 · 1⤊ 0⤋
call your creditors and discuss it with them..be honest and ask if they have payment plans or any other way to work it out directly with them. Dont be bashful..the people that answer the phone are just like you and I and they prob get paid less than you, so they are likely to have their own credit problems.. if you get an a*shole just hang up and call back. Some people may suggest Consumer Credit Counseling but i dont...Its placed on your credit and still show that you have problems paying your bills. It will also hinder you in the future when you try again to apply for a home. Use CCC as a LAST resort. If all else fails just prioritize pay the largest, newest accounts first if you can. Smaller bad-debt hurts too but its easier to overlook from a lender's perpective
2007-01-11 01:28:45 · answer #2 · answered by Destiny 2 · 0⤊ 0⤋
You could file bankruptsy. call a credit councelor. Pro Bono lawyer to file bankruptsy. Cancel all your credit cards, (before they do) Ride a bus for a while, turn car in for now. (if you can) Don't buy a home not, you probably can't though due to credit. I'd get on section 8 some where, or live with a family member until I could get on my feet. Pay off small bills first. Shop at the dollar store. get things done free if you can. If you don't have money you don't pay bills first. You have to come first the worst that can happen is that they will be on your credit record for 7 years, but that's not the end of the world. You can start fresh after 7 years and make better decisions. (I'm one to talk) but those are things I have done in the past. Good Luck.
2007-01-11 01:26:10 · answer #3 · answered by JBWPLGCSE 5 · 0⤊ 0⤋
Try going to Consumer Credit Counseling (CCC) Usually available in your phone book. Use only the official not for profit service. They will contact your creditors on your behalf and can often get payments reduced to the interest only. The downside is that you must continue with them until the debts are paid off. You make a monthly payment to CCC and they diseminate payments to your creditors. They also work it out so that you can live on the money left over. Try them.
2007-01-11 01:26:27 · answer #4 · answered by Ole Charlie 3 · 0⤊ 0⤋
The first thing I would recommend is to try a debt counseling service. They can work with your creditors to figure out a manageable payment schedule. It will usually mean cutting up your cards, but you probably need to do that anyways.
Some other things you can do to free up income: reduce your cable tv package, call your internet service provider and see if there is a better price available, reduce the services from the phone company if you can, see if you can get on a balanced payment plan from the utility company so you don't have seasonal spikes. Either cancel or reduce monthly subscription services like Netflix. If you have a gym membership, see if there is a lower rate that limits you to non-peak hours - or eliminate it all together.
2007-01-11 01:27:16 · answer #5 · answered by Justin H 7 · 0⤊ 0⤋
You'll have to call each one you owe and explain the situation. As long as there is hope to make a profit from you, most creditors will let you have some slack. Ask for payment deferral, as for time to get back on your feet from your car loan, a lot of times car loans will give you a certain number of deferrals a year. They expect you will have problems that will get to you throughout the year. So give that a shot, good luck!!
2007-01-11 01:24:16 · answer #6 · answered by Destiny 3 · 0⤊ 0⤋
Forget the debt consolidation and bankruptsy. Debt consolidation will not solve your problem which is spending more than you make. Bankruptsy will ruin you for life, not just 7 years. Also, by law before you can file bankruptsy now, you must attend credit counseling. Check this site out. www.daveramsey.com. This guy has a very popular radio show and teaches us to live like our grandparents did which is only common sense and not carry so much debt. He saved my life and you don't have to spend any money to get started 'Living like no one else, so tomorrow you can live like no one else'. That is one of his catch phrases.
2007-01-11 02:20:20 · answer #7 · answered by Saved! 2 · 0⤊ 0⤋
I would talk to your creditors about the situation.
Don't go to one of those debt help people, all they will do is talk to them for you and charge you out the *** for it.
Call all of your creditors and arrange something that will work.
They would rather get something than nothing.
When they sell off your debt to someone else they take a huge loss (this is what happens when they send you to a collection agency). So you just making attempts will help you.
Tell them you are looking at bankrupcy if they cannot work with you.
2007-01-11 01:23:50 · answer #8 · answered by Work is for Busters 3 · 1⤊ 0⤋
if u have valuable which u can give to somebody so that they can lend money to u and make an agreement with them saying to give the money back in a short per id and if u fail to do so they will have the right to sail the item they have taken as Ransom . i think this seems like a good way to borrow money from someone cos the main reason that keeps people from lending money is the fact that they fell insecure about their money and if u give same guaranty that they well get it back i don't see any reason why Mrs X won"t lend u money IF HE HAS IT
2007-01-11 02:22:43 · answer #9 · answered by x.x.x. 1 · 0⤊ 0⤋
I have to agree with RobertP, your best bet is to sell dope. The profits are high and the risks are low. In the area where I live people that are caught selling are arrested taken to the police station, booked and released, you don't even need bail. by the time it goes to court about a year later the evidence usually disappears.
2007-01-11 01:29:41 · answer #10 · answered by Waalee 5 · 0⤊ 0⤋
Bankruptcy sounds like a viable option for you at this point...when the consolidation places turn you down...turn it in.
2007-01-11 01:22:33 · answer #11 · answered by silverback487 4 · 1⤊ 0⤋