i know i know i was young stupid, naive, hardheaded, and just plaine dumb. i learn my lesson now and all i want to do is prepare for my future. why do i fell like im the only one in the world who got it this bad please help me.... thank you sooooo much!!!!
2007-12-28 08:04:50 · 21 answers · asked by ? 1 in Business & Finance ➔ Credit
Good news. $6400 and change may seem like a lot right now, but there are people with WAY more than that. So, you learned your lesson cheap.
First. Don't run up any more debt! Next. Make sure you stay up on your current obligations; rent, utilities, etc. If you are getting over limit charges on credit cards pay them down so the fees stop. Fees will kill your budget, do anything you can to stop them. If you can't pay down enough call the credit company and see if they can give you a break on them for a few months. Then start paying off your smallest debts first, that way they will go away. and you'll feel like you are making progress.
Once the small debts are gone pay down the high interest rate debts, while paying small amounts on the rest so your creditors know you aren't ignoring them. If you have more than one credit card pay off either the smallest balance or the highest interest rate first, then apply the large payments to the next one.
To help yourself keep a record of every $ you spend for a month. Take it with you everywhere. Write down everything you spend and what you spent it on.. If you are like most people you will be amazed by what you spend on things you don't really need.
2007-12-28 08:18:39 · answer #1 · answered by don_sv_az 7 · 0⤊ 0⤋
$6400.00 seems like a lot of money right now, but it's not that bad. You could do the "snowball' effect on your debt. Basically what you do is look at your statements, find the card or loan that has the highest APR. (you want to pay that off first) Any extra money that you have you apply it to this payment. The rest of the debts get minimum payments. Once the first one is paid off, move on the the next highest APR, do the same as the first one. When that one is paid off go to the next one. I've attached a spread sheet to help you track your progress. It's a great tool and makes you feel like you are accomplishing something. Good luck, and don't use those cards til you can stay in a budget and pay them off every month!
2007-12-28 16:56:39 · answer #2 · answered by ms.toni67 3 · 0⤊ 0⤋
That really is not a lot of money to be in debt. When you are approaching 100k then that is a mess. Best advice I can give is make a budget. Write down all your monthly expenses. Everything that is reoccurring each month. Gas, Phone, Electric etc. Write down how much you make in income. subtract your expenses from your income and that leaves you the money you have left over. Take 50% of that and add it to your debt. Leaving you 50% left over for play or for "just in case". It will take probably the rest of the year to pay down your debt but you will do it. As well as build credit.
BTW: Cutting up your credit cards is fine but do not cancel your accounts unless they charge you an annual fee. Having a zero balance on credit card accounts will HELP your credit. Any accountant worth his salt should know this.
2007-12-28 16:12:17 · answer #3 · answered by Alan E 2 · 1⤊ 0⤋
You can apply for a personal loan, but at 21 years of age this might be hard to get as you don't have a very long credit history, and the one you do has doesn't show a lot of responsibility. I'm glad you've learned your lesson at 21 instead of 41. Good job!
I really do recommend a credit counseling service. It sounds like you might be a good candidate for that. Here's teh pros and cons of a credit counseling service.
Pro
Payments can be cut by as much as 1/2
You pay off all your debts in 2 to 3 years (sooner if you like)
You make one monthly payment to the counseling service and they disburse it to your creditors
Cons
You will have to cancel ALL your credit cards
You will usually have to get set up on a direct w/d for payments
Your credit report may reflect that you are not making the minimum payments during the payoff time, but once the loans are closed they will show "paid off." which will increase your score
I have used credit counselors before and it's a great setup. It gets you out of the cycle of making late payments and paying high interest. Your credit score will remain about where it is now, but once the debts are cleared you'll see it jump up.
If you want to contact a credit counselor you are welcome to check them out, or just read more about them, on my site here: www.1-800badcredit.com.
Good luck to you!
2007-12-28 16:27:31 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Well, $6434.00 in debt is not very much, and is farr from dire straits. If you have a job and steady income, it all comes down to discipline. You have to prioritize and start paying down your debts. Look at all your statements. Take the account with the higest APR and pay that off first. Send a minimum payment on everything else, but send a large payment to this account every month until it is gone, then move to the next APR.
Good lcuk to you. Hopefully you will be debt free by 2009!
2007-12-28 16:10:44 · answer #5 · answered by Anonymous · 2⤊ 0⤋
If it makes you feel better I was up to almost 17,000 in cc debt at one time. I was older than you too. So hey look at the good side, you realized this young and youll be able to fix it very soon. You need to cut up the cc first. Put about 500$ in a savings account for emergencies. Now pay everything extra you can each month towards your debt. Youll have good credit too when youre done. I only have 2,000 left to go. You can do it!
2007-12-28 16:09:26 · answer #6 · answered by Yeppers! 2 · 2⤊ 0⤋
Cut up your Credit Card's.
Apply for a new one, with 0% interest for the first year
Keep track of your expenses, set away $50-$100 from every paycheck. So in about 1 year you would have saved up atleast $1200.
Work an extra job if you can.
You'll be out of it in no time. Keep your head high. You can do it
2007-12-28 21:37:25 · answer #7 · answered by Aditya G 1 · 0⤊ 0⤋
Put yourself on a strict budget. Elimnate all the extras -- eating out, new clothes, cell phone, premium cable and internet, etc. Take every penny you can squeeze out of that budget and put it on the highest interest credit card while paying minimums on the rest. When the highest interest rate card is paid off, move to the next till all your debt is paid in full.
You can also look for ways to bring in extra cash -- garage sale, collect alum cans, get a second job. Throw all that at your debt.
If you work at it, you could pay it off within a year or two. Then only charge on credit cards what you can afford to pay in full every month.
The way to stay out of debt is to live within your means. Don't buy on credit. Save up and pay cash.
2007-12-28 16:21:06 · answer #8 · answered by bdancer222 7 · 0⤊ 0⤋
Relax, that's not really that bad, believe me there are many people much worse off. You don't say what your debt is (credit cards, student loans, payday loans?) Regardless you just have to start paying as much as you can each month to whoever you owe the money too. If it means working a second part-time job just to pay it off then do so. Then make sure you aren't living beyond your means and start saving. You are so young, don't worry about it, just pay it off then stay out of debt later!!
2007-12-28 16:12:55 · answer #9 · answered by scooter 5 · 1⤊ 0⤋
Cut up cards and stop using them
Take a second job (20 hrs x min wage is around $100 a week you can use to pay the debt)
Buckle down, make extra money and pay all that you can every chance you can. You will be fine.
2007-12-28 16:19:56 · answer #10 · answered by Gem 7 · 0⤊ 0⤋