SRS Help! I am in debt.

Discussion in 'On Topic' started by Guz200sx, Nov 25, 2005.

  1. Guz200sx

    Guz200sx The man who does more than he is paid for will soo

    Joined:
    Sep 1, 2002
    Messages:
    15,741
    Likes Received:
    0
    Location:
    Wellington, Florida Bitches!
    stupid ass me I have acculumated(sp?) an outrageous amount of debt...

    I have 1 Credit Card at $12,700 (estimate)
    another at $5,000+ and another at $2,000+ (all estimates)

    I also have a student loan at about $9,000+ (estimate)

    SO total I am in debt for about $28,700(estimated amount, prolly a little higher)

    I took the first step in overcoming this and I told my family and they justly enough they were pissed, shocked, mad, and sad that I let it get this far out of control. I've been very nervous and mad. But once I told them it felt like a weight was lifted off my shoulders. I realize my mistake and all I wanna do is make it better now but my family was very dissappointed with me. :wtc:

    A while ago, I joined up with some company called Debt One and they were going to try to get the the CC's to settle but sometimes its almost impossible to reach them and they are in Cali and I'm in Virginia and the time difference is a bitch, so they have become really annoying, I'm thinking about dumping them because its an extra $110 and they aren't really helping me....But one of them may be willing to settle. I don't know yet. The higher one is with a CC that is apparently a really hard ass one and I don't think they want to settle. They said they will not neogiate with 3rd party companies.

    If the one CC does settle then My family is willing to help me. I would have to borrow from which is something I've never done. But I would have to pay it back to them and I may end up having to get a 2nd job OR a better full time job. I don't know about the higher CC and what will happen with them.

    What options do I have here?
    Debt Consolidate?? Could I possibly do this? The company that was helping me said the one CC may be willing to settle with me for half of the amount of what I owe and the other half the CC would write it off. ??? Has anyone heard of that?? I've heard that sometimes they sell it off to a 3rd company like a collection agency and then they come after you for that amount.

    I also have another loan with the federal govt for about $5,000 that I haven't told anyone. They take about $50 out of my savings every month for it. I feel if I could get rid of the other ones eventually then maybe on my own I can get rid of this one. I think my family will be even more pissed if I told them about this...I dunno what to do. I don't want to drop them with another one but this one is at the back of my head.
     
  2. RotiEatter

    RotiEatter New Member

    Joined:
    Dec 29, 2004
    Messages:
    131
    Likes Received:
    0
    What did you spend the money on??!??

    I've got about a lot on my credit cards, but I can tell you where most of it is to be honest.

    Don't use debt consildations, they hurt your credit.
    Is your credit still good? Get a 2nd job and pay more each month. I'm going to do the same in Janurary once I'm done with my Community Service and crap.
     
  3. Darketernal

    Darketernal Watch: Aria The Origination =)

    Joined:
    Oct 8, 2002
    Messages:
    10,498
    Likes Received:
    3
    Location:
    Care,for all is like a bonsai tree
    What you need is not only cold hard cash. But a different MENTALITY. Lets start out ,

    -why did you lend money in the first place?
    -on what did you spend this money.
    -How much do you earn each month.
    -How much do you waste each month.

    The amount you have left over will be your 'available cash' each month

    We have to re-evaluate on what you spend money on.

    29 K is do-able, (estimate 3 years)

    Lets say that we have re-evaluated your situation and your not spending any money on trash it would be roughly 9.7 k you have to solve. Of course read the debt management thing in the asylum wisdome when your ready.

    Now the thing is you 'cannot' afford to lose that extra 110 on that advisor, a real debt advisor wouldn't (hopefully) ask such amounts but would be government funded. Anyway it leads me to conclude that you 'think' too easy about money.

    SHRED YOUR CRED. This will be your first step. All the money has to flow thru your fingers from now on so that you will have a genuine 'feeling' of losing something. For you those 28k is an irritating number, but you have no idea of the 'value' of things.

    Loans are not just easy, they are TOO easy. You may have not noticed but all these companies 'trick' you into thinking that a debt is a good thing. WRONG WRONG WRONG, just post how much you work each week, and we'll see what you can do, in order to try to solve your debt i want to know how much you earn and how much you have left. Tell me if you have assets and are willing to sell any of them.
     
  4. RotiEatter

    RotiEatter New Member

    Joined:
    Dec 29, 2004
    Messages:
    131
    Likes Received:
    0
    Yup, share some finacial information and we can help you better.
     
  5. Guz200sx

    Guz200sx The man who does more than he is paid for will soo

    Joined:
    Sep 1, 2002
    Messages:
    15,741
    Likes Received:
    0
    Location:
    Wellington, Florida Bitches!
    Thats the million dollar question:o

    I used some of it on school and school related items and some it was on misc items. I basically mis-managed them and before I knew it they spiraled out of control and I spent the last year or so trying to get them down but my effort has been vain and I finally decided I needed help.
     
  6. Guz200sx

    Guz200sx The man who does more than he is paid for will soo

    Joined:
    Sep 1, 2002
    Messages:
    15,741
    Likes Received:
    0
    Location:
    Wellington, Florida Bitches!
    BTW, I am also behind on my payments with two of my CC'S...Since I joined Debt One I have not paid two of the CC's. I'm behind like $350 on one and maybe $1k on another.

    I shredded my CC's on Monday right after I told my family. I also gave up my debit card.

    I will be telling Debt One that I don't want to be in their program anymore. I hope to reach them Monday (before they take out their monthly payment) and let them know this.

    I make about $1400-1500 a month, give or take a hundred.
    These are my monthly expenses ...

    $115 for School Loan
    $60 for High Speed Internet Access
    $60 for cellphone
    $20 Gas
    $38 for a education class I am taking
    $120 car insurance
    $200 for car payment (until June '06 then I am done with it)
    $50 a month comes out of savings for the other Govt loan
    $100 prolly more for entertainment purposes like going to the movies, eating out, buying CD's/DVD's, and just spending on misc items that I don't really need.

    I spoke to a Loan Officer at my Credit Union today and we spoke about Debit Conslidation today. I feel a little better today because what she said encouraged me a bit.

    I also spoke to reps in both of the CC's. One CC ($5k one) is willing to settle with me for about half of the amount and the Loan Officer at the Credit Union said thats a good thing but to get everything they are saying in writing.
    The other ($12k one) is actually with an Attorney's office now...But the man is willing to work with me (just as long as I told him I wasn't with a 3rd party group anymore)
    I have to call them back next week, I'm going to go ahead with the settlement on the 5k one.
    I may only end up consolidating one CC. Then I would only need to worry about that one loan and my school loan and I may end up having to get another job like at a supermarket or something...either that or get a better job.:hs:

    btw, I have no assets...I only partially own my car but I can't sell that because its my transportation. I'm in the process of selling a bunch of old stuff I collected when I was younger. I may also sell some other items that I am rarely ever using.




     
  7. Guz200sx

    Guz200sx The man who does more than he is paid for will soo

    Joined:
    Sep 1, 2002
    Messages:
    15,741
    Likes Received:
    0
    Location:
    Wellington, Florida Bitches!
    The loan Officer said my credit looks ok but the late payments on the two CC's are killin me. Everything else I have paid on time, every month.

    How do Debt Consolidations hurt your credit???????

    Like I said I may end up gettin a 2nd job or just a better higher paying job.
     
  8. pashy

    pashy New Member

    Joined:
    Nov 10, 2005
    Messages:
    44
    Likes Received:
    0
    a good debt consolidation company should not charge any fees for their work. what they should be doing is arranging to re-finance you with another lender which will give you one payment per month/fortnight/week that you can EASILY afford, rather than several payments.

    debt consolidation companies make their money in commissions from the lenders, not from you. it's a good indication of a shoddy business if they are wanting fees from you.

    youve made a good start cutting your credit cards. clearly you cant handle having credit and should keep this in mind if you consider applying for a card again.

    find a reputable debt consolidation company, using one doesnt mean you have a bad credit rating, though, i suspect you might already if you have defaulted several times on your loan payments or credit card payments.

    i have recently gone through this process for 100's of thousands. it's not hard, it's easy and a big weight is lifted off your shoulders at the end of it.

    whilst i was going through the process of organising paperwork and documents for the debt consolidation, i advised all my existing lenders and credit card companies of the process i was going through and paid off as much as i could at the time, even if it didnt meet their minimum payment requirements. if you are showing yourself to be attempting to make payments, then companies are very mindful of this when it comes to issuing default notices which could lead to legal action.
     
  9. Guz200sx

    Guz200sx The man who does more than he is paid for will soo

    Joined:
    Sep 1, 2002
    Messages:
    15,741
    Likes Received:
    0
    Location:
    Wellington, Florida Bitches!
    Well, Debt One is the the company that charged me and like I just read somewhere, no company should be charging me for the first couple of payments for their fees...too bad I can't get that money back

    I'm gonna go through my Credit Union and do debt consolidation on possibly only one CC. When I talked to them today...they didn't mention anything about any fees. That would be the highest one. My family is gonna help me pay off the other ones. Hopefully, the one CC that mentioned settlement will settle.

    I do not plan on having anymore CC's. They truly are no good. I realized I don't need them. If I need anything I will pay with Cash and If I don't have cash i won't buy it. Plain & Simple.

    Couple of weeks ago, someone from one of the CC's told me I had a credit rating of 712...whatever that means:hs:

    With the help of my family and good guidance I believe I will be able to overcome this and begin my road to building up my savings again.

     
  10. pashy

    pashy New Member

    Joined:
    Nov 10, 2005
    Messages:
    44
    Likes Received:
    0
    debt consolidation isnt about consolidating one debt. it's about joining all your debts into one to make it easier.

    if your family is going to help thats great, lucky for you. but seriously consider consolidating them all before doing so. debt consolidation companies can also arrange for your card to be kept in use.
     
  11. Cerridwen

    Cerridwen Guest

    HOW on earth will that help things to have the card kept in use?
    If you are still using the card,you are simply occuring more debt. If the whole point is ot get OUT of debt, the cards should be cut up immediately.
    Most people who do debt consolidations end up with MORE debt after they are done with it all (because they have more money left over at the end of the month and finance more things). NOT a good idea.
     
  12. Darketernal

    Darketernal Watch: Aria The Origination =)

    Joined:
    Oct 8, 2002
    Messages:
    10,498
    Likes Received:
    3
    Location:
    Care,for all is like a bonsai tree
    Your monthly expenses are 763$ ,that's much too high.
    going from 1400$ that leaves you with 637$ a month.

    From the 763$ an amount of 165$ is spend on paying of loans meaning that your not effectivly paying of your debt , while 220$ is spend on your car.

    Here's what you start out with (well done on shredding your cred)

    - Use a regular phone instead of a cellphone, and try to cut down monthly expenses on it to 30$ a month
    - Check out if you can get a (very reliable used and recommended by friends low cost car insurance) , i think the 120$ is a lot of money :sad2: but maby that's just me.
    - Stop living asif you are big foot, From now on only buy what you really really need. Reduce that 100$ , to 30$ or less.

    So we have

    $12,700
    $9,000
    $5,000
    $5,000
    $2,000
    _________

    $33700 Debt

    Effectivly we have to solve the largest debt,and debt in its totality as fast as possible , its essensial because its like weightlifting a heavy rock, the longer you have to carry it the more heavier it becomes. By paying of we reduce debt.

    Make it happen that these cut-offs are pushed thru into your lifestyle and have 700$ debt paying money power left each month. on a 2 month basis you would have 1400$ saved going from that, throwing this over your debt.

    $12,700 -700
    $9,000 -400
    $5,000 -100
    $5,000 -100
    $2,000 -100
    _________

    $33700 Debt - 1400 = 32300

    if you pay off like this then in 4 years your debt will have been solved. You might have noticed that this is a 'long period' so you might want to take an extra job, or work on absurd times or during the hollidays when extra income for certain jobs can be expected.

    When you finish of the debt of 2000$ use the 100 month that gets released for the 5000$ above it, this gives a boost of 100$ in the debt solve which will mean that 5000$ will get solved extra fast. Same with the other 5000$ and when you finally solve that debt you will be able to pay off the 9000$ with a 700$ a month payment, and when that debt is solved you can smash 1400$ against the remains of the 12700$

    Now experience learns that the beginning is the hardest when it comes to debt solving so be prepared to bite on a wooden stick. You see a debt is like a fire out of control, in the beginning you want to use large and as much amounts of water (in the form of money) against that raging fire, and showing a large counter force against the misery of your own cause I hope you have learned your lesson from this experience. :hs:
     
  13. pashy

    pashy New Member

    Joined:
    Nov 10, 2005
    Messages:
    44
    Likes Received:
    0
    i dont suggest it, but i thought initiall he said he was going to keep a card and if he was, then theres no reason why he cant lower his limit and keep it within reasonable boundaries with his families help.

    debt consolidation doesnt erase your debt, it refinances it so it's manageable. it takes into account every damn thing you owe at the time of consolidation and the lender pays all those outstanding amounts off. then you start paying the lender back. one easy payment.

    for you to sit back and say that MOST ppl end up in more debt after consolidation, how fucking ignorant lol. i work in finance and havent seen anyone with issues after a consolidation.

    debt consolidation is not just for ppl have default and arrears trouble. it's for ppl who want to simplify their loans.
     
  14. RotiEatter

    RotiEatter New Member

    Joined:
    Dec 29, 2004
    Messages:
    131
    Likes Received:
    0
    I think dark eternal pretty much nailed it.
     
  15. RotiEatter

    RotiEatter New Member

    Joined:
    Dec 29, 2004
    Messages:
    131
    Likes Received:
    0
    But yah... the best advice is to cut out as much as you can.
     
  16. Cerridwen

    Cerridwen Guest

    Actually it's not ignorant. We just did a cash out refi to consolidate all of our debt. From the research that I have done (I'll see if I can find the statistics later today) the vast majority of people end up in more debt 3 years later than if they hadn't done the debt consolidation. Our mortgage broker even warned us about this.

    edit: first hit on google
    http://www.bankrate.com/brm/news/cc/20031007a1.asp
    [​IMG]
    But, says Viale, 70 percent of Americans who take out a home equity loan or other type of loan to pay off credit cards end up with the same (if not higher) debt load within two years.
     
  17. pashy

    pashy New Member

    Joined:
    Nov 10, 2005
    Messages:
    44
    Likes Received:
    0
    there cant be a clear statistic on ppl being worse off because the initial debts have been cleared.

    what makes ppl worse is they havent learned from their first mistakes and once they think they are on easy street they resort to their previous spending habits.

    a reputable lender will not make you worse off. that is ignorant to believe. you do realise all mortgage brokers have to disclose that information as a warning to all - just like any lender does at any time.

    if a person takes a debt consolidation and manages their loan with sensibility, there is no disadvantage in gaining another lender.

    when you deal with refinancing as part of your job description, i'll listen to your opinion more. at the moment, i think your comments are pretty worthless.
     
  18. PuppyCat

    PuppyCat O.T. Mom

    Joined:
    Feb 6, 2005
    Messages:
    1,047
    Likes Received:
    0
    Location:
    Land of Provincialism
    Managing one's money takes discipline. My Grandparent's taught me to SAVE as much money as I can...and I do. I always pay my savings account each week when I get paid, when my savings reach $1,000, I put it in paper, when the paper comes due, I put invest it somewhere solid. I very rarely use my credit cards (perhaps twice a year to keep them active). When I am travelling, I use them, but settle my bill in cash. If I really want something (ie: a new sofa), I put it on layaway and pay X amount per week. There is a certain satisfaction in knowing that one's possessions are one's own and NOT owned by a credit card company or a bank.
    It's a shame you are so much in debt...I can understand education debt, but Holy Doodle...going crazy with credit cards? That's just sheer folly.
    I think that the suggestion of you shredding your cards would be a very good idea. It would put temptation out of your way.
    Also, I would advise you that once your debt question is managable, you start thinking right away about your old age and how you are going to live. Retirement age, although it may seem very far away, zooms up faster than you think. Since you have a problem with money slipping through your hands, perhaps you could put something aside in a LIRA, where you cannot touch it until you are retired.
    Just some thoughts from an old lady.
     
  19. Cerridwen

    Cerridwen Guest

    the initial debts have *NOT* been cleared though. They are still there, only consolidated now. They are still being paid off (depending on the terms of the original loan).
    I completely agree with your second paragraph. It takes a change of mind about finances before anything will change.
    I find it pretty ignorant of you to say that as long as I am not refinancing as part of my job description my opinion isn't worth anything. I don't claim to know things that I don't, I absolutely hate people who do that. All I can do is share my experiences and from my own research.
     
  20. Settling for half is the standard. If you're lucky you can settle for 30%. $110 is CHEAP for what they are doing. You'd spend a lot more going to a lawyer but would also get better results.

    How long have you been in debt? If it's for a short time (2 years or less) they're not going to be very willing to settle and especially not if you've been paying little by little. The first thing you need to do is stop paying so that the account gets completely closed if you haven't done so already. Don't worry, nobody is going to show up at your door demanding money. You'll just get notices for years to come and won't be able to buy a car, house, or get a credit card. After awhile I guarantee you that they'll be willing to settle for at least half.
     
  21. Toasty

    Toasty Naked people have little or no influence on societ

    Joined:
    Mar 4, 2005
    Messages:
    790
    Likes Received:
    0
    You can do it. Your debt is high but think of it like you just bought a new car and you gotta pay that off. 4 years or so should do it.

    There's been enough said here, but having gone through getting out of debt myself, here's where I want to encourage you...

    a) although I've never tried a 3rd party debt consolidation lender, putting everything together via your bank or credit union into a fixed loan is an easy way to get things under control. This way, you can pay more on months you can, or pay the minimum on months where something might have come up. You can watch your progress on the loan and it's encouraging to see it chip away a little at a time.

    b) definitely...chop those cards. Keep 1 for emergencies. If you haven't yet done so, develop a strong distaste for using them. Pay everything in cash or debit if you can, otherwise if you buy something on this card, pay everything off when the bill comes.

    c) swallow your pride and lend from your family if you have to. But consider paying them back in full just as you would any other lender. The nice thing about family is they usually won't charge you interest or late fees. :) But definitely pay them or that may one day come back and bite you.

    Good luck :hsd:
     
  22. happyrobots

    happyrobots Ü

    Joined:
    Aug 27, 2005
    Messages:
    1,184
    Likes Received:
    0
    Location:
    Phx
    Everyone has given great feedback for you, and you should be able to do it if you take action.

    Here's my say on a few things:
    -If your car is reliable, but not fancy - keep it. If you sell it and buy a cheaper one that is considered reliable but is older, you may end up paying for repairs monthly (or every other). It all depends on what you can find for a used car, what your car is now and the condition is.

    -I don't know where you're living b/c you don't have rent, but $60 for high speed internet you could possible cut out. If you're taking classes, use the school computers (which could also mean you sell your comp:noes:),...or even get dial up. Yes I said dial up, sorry. But you'd save nearly $50/month.

    -As for the cell phone, you could even get rid of this (but you're probably in a contract). If you can't, use less minutes. Tell people it's only for emergencies. If someone calls and there is a phone near, tell them you'll call them back. Having no phone would save another $60/month, but it would be very hard as it's not accepted in our society today. If you just used it minimal, you'd probably save $30/month.

    -$20 for gas a month is good. Keep that low if you can (as you're doing so already). Car pool if you can, or ride the bus or train, call a friend, etc. Every penny you can save helps.

    -$100/month for entertainment is ok, but don't let that go to your head. It could be a lot cheaper. You can "find" CDs online and get them that way, as well as DVD's IF you really need them. Whenever you spend money on entertainment, ask yourself if its' needed. If you're eating is it b/c you're hungry, or b/c you're bored or w/ friends who are hungry.

    -From now on, consider keeping track of every dollar you spend. Esp do this for entertainment expenses, so you can evaluate it at the end of the money saying "I didn't need that", or "I could have just had a water", etc. By doing this you may find out you're spending more than $100/month, or just that you can spend less.

    -If you have the time, get a 2nd job. Put all the money earned from it towards payments. Even working 15 hours a week @ $7 would be ~$400 more towards loans, and you probably can get more than $7 and put in more than 15 hours. Make it work, and tell yourself you need that 2nd job if this is what you decided. If may mean you have less social life, but in 3-4 years, you will be able to have a much better life.

    I have a lot in loans as well right now. Each month I put 1k towards them and I'm making just as much as you. I am going to get a 2nd job once my first job settles (long story) which will mean I will be able to put more towards loans. I am making it work, I cut all my bills down and cut anything I didn't need.
    Also consider eBaying some old stuff that you have. That could bring in even just $100 more, but you'd get rid of old useless stuff.

    Hope all this helps.
     
  23. Cerridwen

    Cerridwen Guest

    Screw being acceptable or not. Cell phones are not neccesary (unless you need them for a job). Land phones work just as well.
    I've never had one and refuse to waste the money on one each month.
     
  24. pashy

    pashy New Member

    Joined:
    Nov 10, 2005
    Messages:
    44
    Likes Received:
    0
    your own research doesnt compare to my work experience in this field. i spose you'd tell a doctor how to diagnose a patient based on your own research would you?

    INITIAL DEBTS WILL BE CLEARED BY THE DEBT CONSOLIDATION. THATS WHAT A DEBT CONSOLIDATION DOES. IT PAYS OUT YOUR LOANS AND CREDIT CARDS WITH THE EXISTING LENDERS/BANKS/FINANCIAL INSTITUTIONS IN FULL INCLUDING ANY EARLY TERMINATION OF LOAN FEES.

    the debt is then carried over with NEW LOAN DATES, NEW PAYMENT AMOUNTS, NEW PAYMENT DATES. it's an entirely NEW loan with NEW agreements. THEY HAVE NOTHING TO DO WITH THE ORIGINAL LOAN.
     
  25. happyrobots

    happyrobots Ü

    Joined:
    Aug 27, 2005
    Messages:
    1,184
    Likes Received:
    0
    Location:
    Phx
    My point exactly, drop it if you can.
     

Share This Page