21 and Loads of Credit Card Debt!!?

Question

I'm 21, a full-time college student, and I have approximately $10,000 of credit card debt. I honestly don't have anything to show for this debt, I don't know how it added up to be so much. My main credit card has about $7,500 on it (I have smaller store cards which I am able to manage) and I can't keep up with the payments. I'm a full-time student and I don't have a car, so I'm not able to work as much as I would like. My min. payment is $300 which I cannot afford, I send approx. $150-200 a month but I am racked with overlimit fees and whatnot. I am so stressed out because I am unable to save any of the money that I make, because all of it is used to pay off credit cards. Should I try to file for bankrupcy? I know that it stays on the record for 10 years, but I can't see myself getting rid of this debt for 10 years anyways. Would filing affect my student loans? What about a checking account? Would I be able to get a car/apartment in the future with a co-signer? Please help!!

Answer 1

Definately don't file for bankruptcy. There must be someone in your family who has some money laying around they can let you borrow, or even a tax return. Also, if you are serious about getting rid of the debt, work two full time jobs over the summer. Yea, it's going to suck, but you could make $10,000 over the summer if you are serious about getting rid of your debt. Working that much means you won't have any time to go shopping and spend the money either. You may even consider taking a semester off to get your finances in order.

I know people who have filed for bankrupcy and it isn't pretty. If you thought your credit was bad now, you have no idea. Getting anyone to loan you money for a car or rent you an apartment is going to be difficult and you will be paying a lot more for payments. Good luck.

Answer 2

i work for a credit card company. First thing you need to do is check how much you can affort for payments. if you are over limit you problably are paying a penalty pricing rate.

You need to compromise not to use any more your credit cards specially the store deparment because is the highest interest in the credit card business. What you can do is talk to your bank if they don't offer you a payment program. You can go to credit counseling program but you need to be aware that this will affect your credit report it will show acct closed by lender, but you will get the benefit of a lower min payment, lower interest usually the bank will negotiate with this companies like a 9 to 10 % and late fees and over the limit fees will not applied. Make sure to find a good one because you have scams regarding to this companies. But the time you pay your debt you can build your credit again.

right now over limit, late fees, and less than min paymnet already affect your score for buying a card with a good interest rate is not possible, and sometimes the banks considere the score to open a cheking acct the lower your score get the hard will be for you for loans, good interest rate and sometimes jobs.
try to take care of that now before get worse. bankrupcy law has changed so now you will be forced to pay the debt.

Answer 3

Do not file bankruptcy over $10K. It may seem like a lot- but it is not enough to ruin your credit so early on.

Get yourself together. Figure out how to save money, make money and pay down that bad debt. Do whatever you have to do- you will be surprised at how quickly you can chip away at it.

Doing that will build your credit- do not close those accounts- make them work for you. if you have to, cut up the card or give them to someone to hold for you. But pay them down.

In doing this you will establish good payment history which will build your credit and help you when you go get a apartment, or house.

You are too young to throw in the towel. Suck it up- that debt didn't happen over night- you will not get out overnight- but you will be a much more successful woman if you can figure it out now!

Answer 4

You can go for a Credit Card Debt Consolidation:

Consolidation is the best solution available to the credit cardholders to improve their future credit. People go for debt consolidation for many reasons: prolonging the loan period from 5 - 15 years and reducing the interest rate. Consolidation allows you to go for a loan with lower interest rate than the one you are currently paying. Besides it simplifies the loan repayment as you are paying only one lender in place of various payments to different lenders.

Before consolidating your credit card debts, it is important to carry out thorough investigation to determine its suitability for your condition. Many credit card companies and banks provide debt consolidation services to their customers. To start the process, it is important to scrutinize your debt properly. Write down the interest rates charged on various cards. If the new rate is far below average of the old one, then opt for consolidation as it will be cheaper for you. After you get all the information, contact a professional, to assist you with the consolidation, and get the best offer.

Debt consolidation is also provided by credit-counseling firms. These firms will total up all your monthly debts and let you make one payment to them. With this amount, the firm will pay the lenders till the entire debt is cleared off. But exercise caution while selecting a credit-counseling firm, since some firms do not offer free services. People who have utilized debt counseling will assist you in choosing the right firm. The other option is to go for a debt consolidation loan that has quite a low interest rate.

Answer 5

I found myself in the same situation at your age. At 24 I finally filed bankruptcy. It was the best thing I ever did. Credit card companies love students because they make tons of money off of them. They make money off of late payments plus all of the interest that keeps building. If you do not have any other way of getting out then you may really want to consider it. Good luck.

Answer 6

im in the same situation as you are. im 21 and a full time student expect mine is 15,000 dollars worth. i am going through a credit company that i saw on nbc. they are credit solutions and the consolidated everything and i make monthly payments of 288.00 and everything will be paid of in 36 months. i am trying to pay more so i can get it paid off. i would call them first or go talk to a lawyer before filling banckrupty..

Answer 7

i would try to consolidate the bills by either getting a loan or transfer all to one credit card. That way you'll only be paying one bill. many credit cards will offer low % on balance transfers, then cut up remaining cards.