What should I do, Credit problems.?

Question

Please only serious honest answers.
My husband recently joined the army and we need to get out of debt or atleast make good on what we owe others. Peace of mind and its the right thing to do. We are far behind on our credit card bills and owe about 10,000 dollars. I need to know what would be the best way to take care of this. Debt Consolodation, Call creditors. If I make good on them would this help my husband get a security clearance.
I'm willing to try anything that will work. I understand that my credit score will be low, I just dont want this to be over our heads everyday and I want creditors to stop calling and to show we are paying somehow. Thank you.

Answer 1

The first thing to do is call each lender, make them aware of your situation, but do not ignore them. You'll be surprised how much they will be willing to work with you. See if you can lower the interest rate or negotiate some kind of payment arrangements. Then, evaluate your spending and how you can apply x amount of money to each debt, start paying extra on the lower balances to pay those off faster, then apply the additional money to your other balances, and so on. It will take some time, but you will eventually be out of your situation. The last thing you want to do is file bankruptcy or go to one of those "non profit debt consolidation" they don't tell you, but it's as bad as filing bankruptcy. Hang in thier things can only get better from here.

Answer 2

The most logical solution would be for you to work if you already do not have a job or get a second job. Look into how you can make more money. Also, make a list of all your debts and get a copy of your credit report. Pay the smallest bills first and then work your way to the larger debts. You also should sit down with a credit counselor before you consider any kind of debt consolidation. Look for a non-profit like Consumer Credit Counseling Services.

Answer 3

That isn't as bad as some people you can dig out of this. Work a second job and dedicate all that money to the debt. Along with what you are paying now will have it wiped out fast. Call the creditors and ask for an interest rate break. Don't consolidate they are easier to pay one at a time because once you pay off one you have more to apply to the next debt.

Answer 4

I had a similar problem several years ago and went to a credit counseling service. The one I used helped negotiate terms with my creditors and after about 2 or 3 years, I paid off over $40,000 in credit card and other bills. It was a painful experience but worth not having to declare bankruptcy. My credit was bad for a few years but is now close to 800...so it was worth it in the long run. Hang in there and do what you believe to be the right thing to do...and get help from a professional credit service. They can help stop the phone calls.

Answer 5

I would definantly suggest consolidating. It will give you one big bill and one payment. You won't feel as stressed when it comes time to paying those bills. Instead of getting 10 bills you just get 1.
You could also get a personal loan through your bank or anwhere really....but this is just the same as consolidating.

So get a sheet of paper list all of the companies or banks you can consolidate and take a loan out from. Then make columns labled intrest, monthy payment, time frame to pay, etc. Then compare and see which one works.

Once you do that, you must start paying them and then pay yourself...but DON'T touch it. You have to be disciplined. It is important to save more than you spend. Give yourself and your hubby a weekly limit. This includes grocery money. Try to spend weekly within that allowence...make it a game. Keep track of which week you spent the least.

**Try going to oprah.com. She has a ton of stuff about debt.

Good Luck...and remain level headed and calm. It will work out in the end.

Answer 6

Visit the ACS (Army Communit Service) office and Talk to the AER (Army Emergency Relief) Section. They are usually able to help out with situations like yours. See what they say.