$7000 Credit Card Debt At Age 19?

Question

Is this normal? Is this bad? I really don't know what to do; I feel like I've gone way over my head. I have like 7 credit cards and it's hard to keep up with the minimum payment every month because it's hard to remember which ones I've paid and which ones I haven't, etc. I am just a server, but it's in an upscale restaurant and I can make over $400 on weekends and usually over $100 a night (closer to $200 if I'm working a double). I really don't know if my situation is as bad as my parents are making it seem like, but if it is, what are some ways to help fix this before I get in over my head? Is it too late?? I'm so stressed out over this and I have nooo idea what to do...

PS: I live on my own so I'm also responsible for paying $650/month rent, about $100 in utilities, as well as my monthly phone bill which is usually around $50. So it's freakin hard to save up all the money when I find myself spending everything on groceries and stuff!!

Answer 1

You could ask them to lower the interests on it, most will do.
There are also Consolidation firms who will pay it off for you then you pay them at a lower interest rate, however there are all kinds of sharks out there so you want to be careful who you choose to use.
Below you will find some interesting reading on these matters:
http://credit-cards.ebookorama.com
http://finance.ebookorama.com
Hope it helped, cheers.

Answer 2

It's very, very bad. If you don't stop the debt now, you will carry it for a very long time and it will accumulate. You won't have a good credit rating and if one day down the road you want to buy a house you may not get a loan.

Cut up all your credit cards now.

Pay off the debt as fast as you can.

Never, ever buy anything you can't pay for at the end of the month.

That being said, it's normal, unfortunately. We live in a society of immediate gratification and you've been led to believe that with the magic of credit cards we can have it all . That is false because eventually it will catch up with you. You may think that you have a great job, but what would happen if you suddenly lost your job?

Thank goodness you've had the presence of mind to post this question and get advice. Your parents are right to be concerned and if you stop it now you can get out. Go to a bank and get help. There may be a way for you to have the debts of each card pooled together so you know exactly how much you owe.

If you want to be financially independent, control your money. It will give you a sense of power more than your purchased items ever could.

Perhaps you can look into buying one of Suze Orman's books on financial help for women. She's often featured on Oprah and offers great advice.

Good luck with everything.

Answer 3

Take control of your debt. Make a list of each card, your balance, and the interest amount. You should target the higher interest cards first. Paying extra on each card until you pay them off. Since you are having a hard time keeping track of your cards and what is due when look at the due dates of each card - if they are all over the place and keeping track of them on a calendar or using an automatic bill pay out of your checking account won't work for you, contact each company and see if you can set your payment date. I would divide into 2 groups and have 4 cards due on the 1st of the month and 3 cards due on the 15th of the month. That way you know you have to sit down and pay these bills twice a month. Also set a budget for yourself - figure out what your expenses are every month - credit cards, car payment etc. Divide that # by 4 and every week take that much money and put it in your checking account. In that way you know when it comes time to pay your bills you have the funds. Seven cards sounds like its too much - so try to get the balances down and paid off.

Additional Details Comment: Your debt is high but your situation is not that bad. Your weekend money should more than cover your bills - put it in the bank and do not touch it except when you pay your bills. Use the money you make during the week to buy groceries, etc. You can definitely do this even if it means picking up an extra shift during the week. I bet your parents would help you figure out how to handle this if they see you putting effort in and that you've stopped abusing your charge cards. Don't let the situation overwhelm you; fixing this is definitely within your reach

Answer 4

Yes this is really bad. Plus your interest rate must be high since you don't have a lot of established credit at 19.

Get yourself an organizer. Put down when the payments are due 1 week ahead of their due date. Figure out which one has the highest interest. Pay 6 at minimum payment and the high one pay greater than the minimum until it is to zero. Once you are down to 6 cards, repeat the process.

In the mean time, cut up the credit cards except one. Don't charge anymore while getting these balances down.

Good luck.

Answer 5

When you get your bills, put them in order by payment due date in a specific place. As soon as you pay them, put them in a different place (file folder or drawer).

For each of your cards, write down the total amount owed and the interest rate on a sheet of paper somewhere. Take the one with the highest interest rate and pay as much extra on it as you can each month but still make the minimum payments on the others.

If at all possible, try to not charge any more on the cards. Just pay everything you need with cash. This way you won't continue to dig yourself in deeper.

From what I can tell, you can make ~$800-1000 per week. I'm not sure what your other expenses are but if you can pay an extra $1000 per month on your cards, you'd be debt free in only 7 months.

You can do it but the key is to figure out where you are now and write everything down so you know what your real situation is. You can't climb out of a hole until you know how deep the hole is you are in.

Answer 6

It depends on how serious you are to get out of debt.

There are options. Move out of your apartment and back with your parents for a year. Get a roommate.

From what you are posting, you only have a couple hundred a week to live on. To make a serious effort to get out of this hole you need to find at least $250 a month, and some clever negotiations with your creditors. I don't see that happening with your income.

It sounds like you are already working all the hours you can, so a second job is out. Therefore you can only cust expenses, and your major ones are your rent. If you moved back with your folks for a couple years you will fix your finances and you can start out fresh (and much wiser).

The only other option is to quit paying your credit cards, trash your credit for 7 years, dodge the creditors. Most won't mess with suing you, they will be happy top trash your credit history. If they find out you make that much money, they will sue and garnish your wages. That's the risk you will be taking.

Those are your options. Admit to your parents they are right, or dodge the creditors. Neither is pleasant.

Answer 7

Michelle, I have the perfect solution for you. I'm not going to be like everyone that's scolding you for getting into debt. The damage has been done. I'm going to spend my time on this answer talking about how to get out.

First, you need tools in order to get this back in control. Do you have a checking account? Do you have a savings account? If not, you need to get one. If you have one, I'll continue.

The first thing you need to do is put up the cards. Don't use them anymore, just put them up.

Now what I'm about to say is important. Did you know that you could build credit by paying rent, utilities, and your phone bill?

Click this link ==> http://prbc.com/default.php?

It's far too mcuh information to cover in this answer, but I wanted to show you this. It's a credit bureau that helps build credit by reporting payments besides your credit cards that you pay every month as "alternative credit" to help you build or enhance your current credit. You can submit payments up to 3 years prior and have them verfied for a fee in order to have them reported. They also have an online billpay service for $4.95/month that automatically reports any future payments you make with them, so your file stays updated.

Click here ===> http://prbc.com/consumers/how/olbp-intro.php

This is a billpay service where you can list everyone you pay every month and set up automatic payments and build credit at the same time with the company in the first link I posted. This way, you can look at all 7 of your credit cards, rent, utlities, phone, and any other bills that you have. This way, you won't get confused on which ones you have or haven't paid. It has features such as reminders and scheduled repeat payments that's ideal for rent, so you'll never forget to send out the rent check. The payment get there on time, if not a little early, so you're never late.

I use this service myself, and it has helped me out a lot!

Another website that's good is called PowerPay.org It has nifty calculators and payment schedules to help you get out of the jam you're in.

You make some serious scrilla ($) With these tools, I'm certain that this will definitely help you out

Answer 8

You already know that it is bad. You admit that you can't keep your bills straight. It sounds like the best thing you can do right away is to listen to you parents. They can help you come up with a plan to get you out of debt. It is not easy and it won't happen overnight. You could try to declare bankruptsy, but that is sometime even worse. You are young and that will follow you for 7-10 years. It is a lot better to get out of debt. Without knowing more I can't say that a consolidation loan is the way to go or not, again let your parents have the first crack at solving the problem.pp

Answer 9

That's really bad. You are too young to be destroying your credit that way. If you still live at home, you should be paying as much as you can on those cards at a time, even if it means giving up things like going out with friends. I would even get a second job if I were you. No one needs more than one major credit card, an even then it should be used for emergencies or times when it's required for reservations, like with a rental car or airline.

You said yourself that it's hard to keep up with the minimum payments. Get a handle on it now, before it gets worse. Good luck!

Answer 10

If you can't afford to pay more than twice the minimum payment it's really bad. You need to get down to 3 cards or most preferably 2 and manage them extremely well. Once you get this paid off you need to save and live within your means. It's tough but it's so much better to learn now than when your 29 and looking at bankruptcy.

Answer 11

Your situation is not bad... if you get 2 more shifts a week !

Monthly spendings :

rent/utilities/phone : 800$
transportations : 400$
meals : 400$
savings/credit cards: 400$
fun/hobbies/sports : 200 $
Total : 2200 $ spendings/month

Earnings : 4 X 400$ = 1600 $
Missing : 600 $ / month

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Do a basic list of your bills, and pay them on time.


Good luck !