I currently owe about $12,000 in credit cards and loans. I also have a car that i owe $15,000 on and my job is commission based and i am not making as much money as i used to. My parents are co-signers on three of my debts and i dont want to hurt their credit with a consolidation company or a settlement or a bankruptcy. and i cant put those debts into my name because my credit is only like 600. Does anyone know of anything that may help me out?
2007-07-03 07:37:35 · 10 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
There is one thing for sure, you have to act now before it gets worse. My advice, take a deep breath and go to your parents. They are the only ones you can trust and they will give you the best advice. You are not the first and you will not be the last person to be in this position. You seem young so you can learn from this experience and get over it. If however you do nothing then every day the interest will mount and you will owe more. You have to accept the fact that you need help, talk to your parents, if you cannot find the words, write them a letter. They love you and they will help you find the best solution for you and talk to the companies involved on your behalf. Sometimes a company will halt interst charges Etc and agree new terms but they cannot help you if you do not help yourself.
Talk to your parents before you do anything, do not try to work this through on your own. There may be an impact on their credit or they may have to pick up the pieces if it all goes wrong and so I would say, be responsible and talk to them. You owe it to them. I promise you that life will seem easier once you have shared this with them.
2007-07-03 07:45:54 · answer #1 · answered by Anonymous · 2⤊ 0⤋
You need to change your job to a non commission based job. That is a big part of the problem. A few weeks of no pay check can turn someones world upside down especially if there were no savings.
When you take on a commission job, like real estate agent, you are supposed to have 4-7000.00 in savings (or 3 mos of previous earnings, or 3mos worth of bill minimums in savings), because it could be a while before you make your first sale.
Commission jobs can be great if you start earning right off the bat, but they can also sink you if you dont.
Pay the minimum for now, switch jobs and then work hard to pay off the debt. It sucks and I have been there. I signed up for every card on the planet when I got to college. They had this sidewalk called "credit card row". They gave us amazing incentives to sign up for their cards. From t-shirts to 50.00 gift cards. Thinking about it now makes me sick because of how slimey that actually is!
Good Luck!
:-)
2007-07-03 14:47:08 · answer #2 · answered by Breava 3 · 0⤊ 0⤋
If you are commission based, then you probably have an unlimited earning potential (or at least very high). Speak to people who are in your position on how to increase revenue and get more clients (or sell more product, whatever). Also look into transfering balances on credit cards for lower interest payments as a temporary solution. At last resort beg your parents for money, but let them know if you are close to foreclosing a loan as their credit would be screwed too.
2007-07-03 14:52:01 · answer #3 · answered by B . 2 · 0⤊ 0⤋
Yes firstly you have to be postive once you get through this you will realise it was one of the best experiences you could have ever had! Get another part time job and try to get a steady income day job. Look up Dave Ramsey on the net...I am an expert on this subject so message me if you need more specific info.
Cut down any outgoings asap and dont ever borrow money again.
Good Luck
PS
'You really need to consolidate your debts' No you dont this is a big mistake
2007-07-03 14:43:59 · answer #4 · answered by BigK 2 · 0⤊ 0⤋
I'm going to tell you the easiest thing to do that will get you out of debt without getting a loan and without hurting yours or your parents credit score.
Contact InCharge Debt Solutions: www.incharge.org
They are a credit counseling company and they will take all of your bills and lump them in to one payment each month. They also work with all of your creditors to get your interest rate dropped. Then you pay InCharge once a month and they distribute all of your payments on time for you and you only pay one person, thus making more time for you to work.
They do ask for a $40 donation per month, but it's voluntary and not required. Give them a call, they helped me once.
Also, they got my interest rates on my cards dropped from like 19.9% to around 6-8% which helped me a lot.
2007-07-03 15:05:29 · answer #5 · answered by sportsstar4u 3 · 0⤊ 1⤋
You really need to consolidate your debts, regardless of how it may affect your parents credit. Talk to them first, of course, they may be able to help with some of it. Then go to the Lighthouse Credit Foundation web site. lighthousecreditfoundation.com. They will help you get out of debt faster than trying to do it yourself. Usually in 5 years or less. I know they can help you; they helped me, and it took less than 5 years. They are super nice and very good at what they do. If you decide to do it, ask for Betty, she is great!
2007-07-03 14:45:16 · answer #6 · answered by magix151 7 · 0⤊ 1⤋
Well try to put all your monthly payments in one low amount some banks do that, try it. Anyway you have lots of debts the worsted is the high amount specially credit cards you should never have $12.000 in credit cards try to fix it and moderate your expenses.
2007-07-06 12:01:40 · answer #7 · answered by galvfrac 2 · 0⤊ 0⤋
work, work, work, get another job if you need to, make all the payments on time and nobodys credit gets hurt.
2007-07-03 14:41:28 · answer #8 · answered by tricycle_pilot 4 · 1⤊ 0⤋
statefarm 123 lumpsum
2007-07-03 14:41:07 · answer #9 · answered by a p 1 · 0⤊ 0⤋
Well, get more job and THINK TWICE BEFORE YOU WANT TO BORROW MONEY AND USE YOUR CREDIT CARD IN THE FUTURE!!!!
2007-07-03 14:49:01 · answer #10 · answered by Tesco 3 · 1⤊ 1⤋