I really would like to get rid of my back payment/collection I owe my bank. But I can't seem to catch up.

Question

My question is, is there a way to catch up and get rid of the collection and get out of debt? If so what different routes are there to choose from?

Answer 1

One suggestion I have is to talk to them and see if you can get the interest rate lowered. Sometimes, they will work with you if they see that you are really trying to get it paid off. Getting the interest rate lowered can cut a lot of $$$ off of that bill.

The ONLY way I know of to get out of debt is to pay the bills. On Credit Card debt, if you are only paying the minimum payment, you will be paying for years and years. You HAVE to pay more than the minimum. That minimum payment barely covers the interest. If you don't start paying the principal off faster, you're just getting charged more and more interest.

If you're already in collections, talk to them and make a payment arrangement so they'll stop calling you. Whatever arrangement you make, get it in writing and don't default on it. Pay ON TIME. Every time you pay late, they're adding on another late charge. I've seen people pay late and and by the time interest and late fees got added on, their bill was going up every month and they weren't even using the card. Late fees and interest will kill you.

You may have to get some part time work just to get out from under this. It's a bummer but the the faster you can get this paid, the faster you'll actually have some money left over for yourself to spend.

The key here is On time payments. Pay more than the minimum. There is no easy out.

But the freedom you'll feel when you get this stuff paid off and are no longer a slave to credit cards will be unbelievable.

Everyone these days, needs a credit card to even function but no one should be charging more on them then they can afford to pay off when the bill comes. Don't charge these things up again. You've see from experience what it does to you so don't do it again.

good luck.

Answer 2

I'm confident that you must find every financial solution at: financial-care.info-

RE I really would like to get rid of my back payment/collection I owe my bank. But I can't seem to catch up.

My question is, is there a way to catch up and get rid of the collection and get out of debt? If so what different routes are there to choose from?

Answer 3

Seeking help from an organization that deals specifically with these types of issues is a sensible way for people struggling with too much debt to attain financial control. Credit counseling is a specialized form of personal finance assistance. It is comprehensive, educational, and goal-oriented. In a credit counseling session, the cause - not just the effect - of financial troubles is explored. Clients gain clarity on their particular strengths and challenges, and acquire the tools they need to make conscious and positive choices.

Credit counselors are trained professionals, experienced with helping a wide spectrum of people. Sensitive to the unique circumstances and feelings that those struggling with debt have, counselors recognize there is no single answer or plan for all clients. The focus is on the individual and his or her personal needs and situation. Working in conjunction with the client, a counselor conducts a thorough financial analysis. After examining assets, income, spending habits, and debt, a workable action plan is designed, outlining the steps he or she needs to take to achieve short and long-term financial objectives.

For some clients, a debt repayment plan may be an ideal way to pay unsecured debts. Such plans require a client suspend the use of their credit lines and make one monthly payment to the credit counseling organization, which in turn pays the creditors. Debt repayment plans are beneficial because many creditors reduce or even eliminate interest rates and penalty fees - repaying the debt with less money going towards finance charges and more to the principle. Payments remain consistent, and as each debt is paid off, the remaining creditors are paid more, making it a very efficient system. And because it is a single monthly payment rather then several spread out over the month, clients often find money management easy.

Good luck.

Answer 4

Make sure you have a budget in place. You need to write out all the income you receive in a month, and break it down, so you're aware of all your bills and how much you'll have left, after making minimum payments to your bank, to cover your debt.
I would contact your bank, and make sure that you keep the lines of communication open with them, so they're not left feeling that you're avoiding them, but that you're willing to work with them.
Working with your bank will always relieve some pressure you may be having about this, and by making the extra effort in making your payments, however small they are, or how frequent, it lets your bank know that you're doing just that - making that effort.

Answer 5

There are many solutions available. No one can give you a specific answer without knowing your entire situation. Every circumstance is different and must be looked at individually.
One rule of thumb I go by...you can't borrow money to get out of debt. Also, for every solution out there, each has a negative point, whether that be your credit or higher payments. To get out of debt will take structure and discipline on your behalf. Your desire to get out of debt is the first step.

Answer 6

Try to get a loan to pay off the debt, one in which you can afford the monthly payments. If you own a home, you could maybe take out a home equity loan.

Answer 7

I have placed this in the source box. There is a wealth of information there and a great free debt management software program. I bookmarked the site as I return to it often for the advice it offers. I hope this helps you.

Answer 8

i have the perfect solution for you.. i was also in financial debt and my credit was horrible and working my day job alone wasnt cutting it, so i make a few hundred a day at home online and now i'm financially stable! i think i can help you out if you need some quick cash.. heres the link http://www.6million.biz/wealthbuilder/ hope this helps. good luck

Answer 9

Get a debt consolidation loan that you will pay by installments. You can comparison-shop using the website below

Answer 10

You only truly have one choice: cut back on your spending and pay off your debt.

It's like dieting: watch what you eat and exercise.

There are no shortcuts.