ok! I am 21 years old and I have a huge amount of debt and bad credit. Yes, I know too young, but it happened. I now realized my mistakes but that is not helping me get out of this hole. I have a $470.00 car payment a month that I cant get rid of. Cant sell it because I still owe $15,000, I have $5,000 in credit card debt, and I live alone. Rent, utilities, and car maint. is a debt within itself. I have a desire to own my restaurant within the next 8 years. How can I reach my goal? I am paying bills every month but I cannot save a dime. HELP ME! How do I balance my life out. This is seriously damaging my future and every positive thing it holds. HELP ME!
2007-11-10 12:22:41 · 4 answers · asked by Lance D 1 in Business & Finance ➔ Credit
Look closely at your expenses and cut back on anything you can. And pick up a second job, and put ALL of the money from that job toward paying off your debt - then when that's paid off, put it into savings toward what you'll need to start a business.
2007-11-10 12:56:24 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
well i am an auto deficeincy bill collector so first and formost dont let that car go in the rears because even if they take the car and mark it as a repo u will still owe the money after auction. so keep that up however if the payments are too steep you may want to talk to the bank about refinancing to lower your payments....As far as the credit cards you should figure out first how many card accounts do you have and how much is on each from there call the agencies whom have them and work out settlement agreements on credit cards you can get up to 30% off the debt and work it out normally within 3 installments so for example if you owe 1000.00 offer to settle at a total of 700.00 in payments of 250.00, 250.00 and 200.00 the best thing to do is call them now and get this worked out otherwise interest or finance charges will still incrue. the best thing to do is the settlement option though because even if you do payments if they are not more than the minimum you are throwing your money away every month on interest. and its better to call and ask the collector to settle before they offer it to you and don't let them say they cant because i guarantee they can and if 30% is less than what they say they can do tell them to submit a request to the client. and one more thing if it is a current credit card the only way to avoid interest is to pay the balance of which you charge within 30 days of charging it. wish you the best of luck
2007-11-10 20:44:41 · answer #2 · answered by Aleshia E 1 · 0⤊ 0⤋
My first suggestion would be to get rid of the $470/month car payment. You say you can not get rid of it because you owe to much but is that really what you owe? Talk to the lender and find out what the pay off is and go from there. Do you really need that "much" of a car? The $5000 credit card debt you can eat away at it a little at a time and even more so once you free up the $470 from the car payment. You have to be frugal in your efforts and pay down the debts.
2007-11-10 20:38:49 · answer #3 · answered by Boat Junkie 2 · 0⤊ 0⤋
contact consumer credit counseling they will help you set up a program that is workable. Usually you are debt free within 3 years. Good luck!
2007-11-10 22:06:04 · answer #4 · answered by frogbfound 4 · 0⤊ 0⤋