Help me to get my credit back in order?

Question

HELP ME...i got into a financial bind with my credit cards and want to get back on track but they are already at a collection agency. i am in good standing with my car note never missed a payment or late for 3yrs. Should i take out a consolidation loan or file bankruptcy? i really dont want to do that but what other solution do i have? I already had a nasty bill collector tell me that i should pay my bills on time even though he did not know my circumstances. i do know that i do owe but i just dont have all it at this time. I know they have heard every excuse in the book but my excuse is that i just am broke---car broke down, roommate left me with bills and RENT without a notice. I dont want handouts just a guiding hand for me to resolve this issue as quickly as possible.

Answer 1

Don't kick yourself too hard, this happens to lots of people every day, situations change, income changes, we all face it now and then.
First of all, don't let the collection agencies hound you, you have legal rights to protect you from these practices.
If you can do it, then I would recommend a loan consolidation to pay off creditors and stop the anxiety they cause you. Try and get a loan from a credit union, they are pretty easy to do if you have an account with them. They often work with people to help them out.
I have enclosed links to the Federal Trade Commission so you can find out your legal rights and how to protect them. These links are not "spam" just to steer you to some on line credit repair company.

I invite you to join the following Yahoo group "DontGetRippedOff" dedicated to helping those in financial trouble, Here you will find information to help you with debt collection agencies.
http://finance.groups.yahoo.com/group/dontgetrippedoff/

Answer 2

If this has gone to collection you are letting it get out of control but a logical first step is to call each creditor and set up a payment plan. Consolidation loans often make the problem worse rather than better but they do work for some people. But, if you do, be very careful and get some sound financial advice from someone who understands money.

Decide how much you can pay each month to liquidate your debt. Once you establish that figure pay systematically on your debts. Once your lowest balance debt is paid off take what you were paying on that and add it to the next lowest and keep up this system until you have paid everything off.

You might search the Internet for "Crown Financial Ministries" where you may find some further guidance. Don't file for bankruptcy.

Answer 3

Well, you must admit that bill collectors could NOT care less about your 'circumstances'. Their job is to get money from you to pay your delinquent bills. You MAY be able to settle some of these collection accounts for less than they are demanding, but that will require ready cash to make a full payment of any agreed settlement. If you DO elect this route, insure that you get IN WRITING the terms of the settlement, signed by someone authorized at the collection agency.

Meanwhile, you do need to learn to live within your means. Using a credit card to extend your financial difficulties always ends up with a situation like yours. You need to cut expenses and increase income level in order to gain on your mess. Consider a second job for a period of time, and living as starkly as you possibly can in the interim.

Answer 4

Credit cards can be alot of trouble.I used one for gambling,so don't feel bad.