I аm 21 years οld аnd hаνе found myself іn a rаthеr deep hole wіth creditors. In thе bіg picture, mу credit isnt anything tοο bаd. I hаνе аbουt four deliquent accounts totalling nο more thаn 4,000 dollars. Hοwеνеr, having a car payment аnd rent doesnt leave much room fοr mе tο pay οff thіѕ debt. I wanted tο know іf anyone hаѕ dealt wіth аnу companies thаt wουld bе аblе tο hеlр mу situation іn thе sense οf debt consolidation, οr counseling. Itѕ аbουt thаt time fοr mе tο gеt a hold οf mу finances, bυt living expenses seem tο push mу debt farther аnd farther down thе road. Anу advice wουld bе greatly appreciated. Thank уου!
If I do not have the cash I do not spend. I do not rely heavily on credit. Do not pay interest on consumable items. . . food, gasoline, entertainment.
Now, go to your bank and inquire about a consolidation loan or a personal loan with low interest. You will only acquire low interest with a good creditd score. . . preferrably above 630. The lower your credit score and the higher your debt to income ratio is the less likely you are to qualify for a loan. Most consolidation loans require a minimum debt of $10k and higher.
A few years ago I owed about the same amount on a couple of credit cards. One of the credit card companies actually took me to court, because I stopped payment. Don’t let it get to that. Try to get the interest rates down and just make payments. Everytime I had a little extra money, it went to the credit card company. It was hard staying on top of that and it took me about 2 1/2 years to get it all paid off.
You could sell your car and buy a $3000 used car. It might be a difficult choice to make, but the used car would be paid for and the money you’re paying each month for your car could go towards getting out of debt. In fact, the money you get for your car could get you completely out of debt.
Why not get a part time job and use that money to pay off all your debts then quit.
Sell your car and buy a cheaper one.
Move from where you live to somewhere cheaper or get a roommate.
There is no magic answer.
Income minus expenses.
If you cant increase your income (substanially), then you have to lower your expenses.
And I have sympathy for you. My son got into the same mess in college since the credit card companies were DELIGHTED to extend credit to students. So I helped him out until he was able to finish school and pay me and the credit card companies back.
But do not believe any of these quick fix, credit card consolidation companies. They are primarily NOT non-profit, and even if they are, they are going to charge you for their service.
It’s a harsh reality, but living within your means and valuing your reputation and credit history must be your first priority or this trend will continue. You’re only 21. And you are starting your life in the hole (as you’ve stated above)
Get out of it now and vow to not let it happen again, or you’ll never dig your way out. I know its tough to do, but if you want to, you can.
Good Luck
Sell your car and get an inexpensive used car. If there is any money left over from that pay off the debt with the highest interest first. Even if there isn’t money left over from the car swap, you can still use the money that was going towards car payments to pay down the other debts.