I have 3 credit cards that I haven't paid anything since I got it. I know, really really really bad. I had a Bank of America credit card, a Discover, and a Wachovia credit card. Total of how much I owe is about $4,000 now probably. I really have no clue though, because they are all charged off and is now in the hands of certain collection agencies. I have no idea how to contact these collection agencies and they haven't made an attempt to contact me yet. I just need to know how to go about even starting to get my finances back in order. My credit is now ruined and I just want to fix it all.
I was wondering also if I do end up paying off all my debts because it's not that high right now, how do I go about establishing good credit? Any information, links, book recommendations, etc. to help me with my situation would be a trumendous help! I already know I messed up big time. I'm only 20 years old, but I'm already in this much trouble with my credit score. I want to fix it ASAP.
2007-05-20 06:47:26 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
Step 1. NEVER use any of the cards again.
Step 2. Get on a WRITTEN budget to control your spending and find out how much you can save up to pay of the cards.
Step 3. When you think you have enough to settle ONE of the cards, contact ONE of the companies to see where you stand. If you still have the actual cards, you can use the toll free number on the card to contact the original creditor. If they have sold the debt, they can tell you who they sold it to. You may be able to settle for less than the full amount. Just be sure you have a written settlement agreement in hand before sending any money. Then pay by Cashiers Check or Money Order. There is no point in giving them anything with your bank account number on it.
Step 4. Repeat step 3 as necessary.
Don't wake them all up at once. Put them down one at a time.
2007-05-20 08:47:01 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
quite stable solutions Your concern isnt the debt, this is the way you cope with your money. in case you're making 2600, your lease can't be by using any potential 2200. What do you devour? automobile coverage? Emergency value low value rates? .... First you may desire to decrease your lease by using seven-hundred or so. come across a good place that has each thing secure. once you pass to the food market have the cheap. do no longer endulge or overspend. Open an oline value low value rates bills and placed 20 for now each month. Dont say you cant, you may. AH btw, the actuality you have costs has no longer something to do with value low value rates.... you elect additional funds, get a greater useful pastime, or a 2nd pastime. in case you haven't any longer paid previous due in the past, as a manner to rescue that credit and do away with that debt you have chose an especially agressive plan. minimum money wont do, pastime will devour them. Why in the international you pay lots on friggin lease??? Are you working a bussiness from which you're making all your money??? if so you may desire to get one or 2 properly-known jobs and decrease the lease money to stay to tell the tale. assume you elect month-to-month 850 a month for lease (utilities secure) this could be even seven-hundred. 80 a month for nutrients, asumming you recognize the thank you to cook dinner and strech the dollar. one hundred thirty for automobile coverage, = terrible credit 60 = cellular telephone 200 miscelanous expenditures = gas, etc a month = entire 1260 a month to stay. if your pastime provides 2600, wich is approximately 20 an hour, and you get an element time for 10/h which will supply you at leasts 1000 dollars greater desirable, that could desire to be 3600 a month - 1200 = 2400 to pay to your costs You owe = 30890, Your debt to credit ratio sucks so which you cant ask for greater. forget approximately approximately 0 % provides. So, Pay those 1300 first unexpectedly to enhance your credit a splash. Then pay the different enjoying cards. do no longer INCURR ANY NEW DEBT. in one year you may desire to be debt unfastened = 30890/2400 = 12.87 = one eyar aprox.... in case you may earn greater funds or borrow out of your mom and father you're inspired to attain this.
2017-01-10 10:33:39 · answer #2 · answered by buono 3 · 0⤊ 0⤋
Contact the credit card companies and ask them who they sold your debt to. If you cannot find out this way it should be in your credit report. Get a free one from annualcreditreport.com, and see if it's there. I recommend books by Suze Orman and David Bach when it comes to restoring your credit. Their books are great, descriptive and realistic. Their sites are also extremely helpful with calculators to calculate debt, mortages, etc, advice for getting out of debt and such. Suze has her own show that comes on CNBC at 9:00pm and 12:00am on Saturday nights. Her show as a interesting and usually funny segment called "Can I Afford It" where people call in with their finances and ask Suze can they afford something. David has links to extremely helpful websites in his books and on his site. Hope this helps. I'm trying to get my credit straight too.
2007-05-20 07:21:27 · answer #3 · answered by Mizz Nay 2 · 0⤊ 0⤋
Chop up the cards, then talk to a bank financial adviser. They can help you lay out a re-payment plan and possibly a debt consolidation loan.
Next set yourself up a budget and stick to it.
Don't they teach this in school anymore?
2007-05-20 06:51:46 · answer #4 · answered by Ford 4 · 0⤊ 0⤋
contact credit card companys(yourself),talk with them about monthly arrangements,,thats the first step--2 would be to find a part-time job,,to up the annie,,to pay them and still live,,smile--
2007-05-24 02:58:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋