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getting out of debt Q's

Discussion in 'The Lounge' started by R72K5, Feb 2, 2004.

  1. R72K5

    R72K5 Banned

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    getting out of debt Q\'s

    im in debt around 3500 now and still have not bene able to find work after the layoffs over a eyar ago and this debt and minimum payments are growing, they are two debts, one credit card and other gateway computers, gateway computers is $2k and been since year 2000 it started out at $1300, the credit card is about 5 months old and a little over $1,000, the credit card i cut up a couple months ago,
    minimum payment on the gateway is up to 150 now, and i forgot how much on the credit card id have to look again,
    what would you do if you had these two debts and no savings or income at all and wont until can land employment somehow ?
    it is alot of debt for smeone in my shoes who cant even afford to buy a can of soda, so im at a loss and have been for quite some time im having a really bad outlook on everything anymore.

    is there any way that i can get the interest lowered or stopped somehow ? or anything ? at least until i can earn and send in paychecks ? i really want to get this stuff paid off but have no way to and havent had any way to go at it for quite soem time now, this not a good thing.. i should have never gotten a puter in the first place and should have never touched the CC, i wish to God i had never done either. and am never going to do anything like it again




    thanks for anything suggestions ideas info, etc.
     
  2. Skigirl

    Skigirl 1/2 ton status

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    Re: getting out of debt Q\'s

    [ QUOTE ]
    what would you do if you had these two debts and no savings or income at all and wont until can land employment somehow?

    [/ QUOTE ]
    I'd go work odd jobs around the area for cash. Shovel snow, haul stuff for people, etc.
     
  3. 88Silverado

    88Silverado 1/2 ton status

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    Re: getting out of debt Q\'s

    In California theres Consumer Credit Counseling Service.
    They are a non-profit org that will work with the creditors to get payments and interest lowered so you do file chapt-11. Be careful as there are some fakes out there. These services do work but sometimes the credit card company may submit a charge-off against you wich will mess up your credit. I would check into this type of place first to try and salvage your credit.
     
  4. thatK30guy

    thatK30guy 1 ton status Premium Member

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    Re: getting out of debt Q\'s

    Should put both into one payment. Put whichever one has the higher interest onto the other. But you probably can't do that thru Gateway. I would just put Gateway onto the credit card to have one payment, which will be cheaper than both. Since your card is cut up, you should be able to call them and/or get online to their site and register with your info and card number to do a transfer payment of the Gateway to your CC. /forums/images/graemlins/thinking.gif
     
  5. R72K5

    R72K5 Banned

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    Re: getting out of debt Q\'s

    [ QUOTE ]
    [ QUOTE ]
    what would you do if you had these two debts and no savings or income at all and wont until can land employment somehow?

    [/ QUOTE ]
    I'd go work odd jobs around the area for cash. Shovel snow, haul stuff for people, etc.

    [/ QUOTE ]

    if there were any such odd jobs to find then id have been doing them starting a long time ago, ive had a ton of trucks in the last ten years and never have gotten a hauling job from having it, and shoveling snow or whatever everyone else already is on top of that stuffi dont live in a high population area, i cant explain any better than that

    thanks
     
  6. R72K5

    R72K5 Banned

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    Re: getting out of debt Q\'s

    [ QUOTE ]
    In California theres Consumer Credit Counseling Service.
    They are a non-profit org that will work with the creditors to get payments and interest lowered so you do file chapt-11. Be careful as there are some fakes out there. These services do work but sometimes the credit card company may submit a charge-off against you wich will mess up your credit. I would check into this type of place first to try and salvage your credit.

    [/ QUOTE ]

    i dotn care if it messes up my credit, its already messed anyways im sure, fakes of the Consumer Credit Counseling Service itself ? or ?

    i found one of these in decatur IL

    http://www.obre.state.il.us/CONSUMER/CREDIT%20COUNSELING.htm

    should i just call them now ? or wait til i find work or ? can they even do anything for me til then ?


    hmm

    thanks
     
  7. R72K5

    R72K5 Banned

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    Re: getting out of debt Q\'s

    [ QUOTE ]
    Should put both into one payment. Put whichever one has the higher interest onto the other. But you probably can't do that thru Gateway. I would just put Gateway onto the credit card to have one payment, which will be cheaper than both. Since your card is cut up, you should be able to call them and/or get online to their site and register with your info and card number to do a transfer payment of the Gateway to your CC. /forums/images/graemlins/thinking.gif

    [/ QUOTE ]

    i cant put gateway onto the credit card because the max limit on the card is way low and even lower now due to my lack of ability to make payments in last couple months, the card line is down to 1200 now, i now owe them right about exact same amount within like 50 bucks


    so now what ?

    thanks
     
  8. Lance

    Lance 1/2 ton status

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    Re: getting out of debt Q\'s

    I did one back in college. Was in up to my neck with credit card debt and joined up with Metropolitan Financial Management. They are now called Auriton (because I still get mail from them.)

    Like was said above, they re-negotiate your percentage rates on your debts. Somewhere in the neighborhood of 4% - 6% (except for Discover). You pay the Credit Counselor a lump sum once a month, which includes a small fee (~$10) for them, and they in turn pay all your debtors. It worked great at the time, because I was still very immature (my wife says I still am) and did not have the discipline necessary to pay off my debts.

    However, hindsight being 20/20 I would not go through one of these programs again. For the primary reason, it destroyed my credit. These programs are only slightly better than declaring bankruptcy. Even after you have long since paid everything off, it lingers on your credit for years. Almost prevented me from purchasing a house.

    I would recommend you (or a close family member or friend with a backbone) contact each of your creditors and re-negotiate your percentage rate. Tell them whatever it takes. It isn't easy, it becomes like a part time job but, it can be done. Plus that'll be $10 a month more for you to pay toward your debts. Then cut all your credit cards into tiny little pieces and don't ever get another one again. Your only making the banks rich by using them.

    Then, sell whatever isn't nailed down to earn some extra cash. Swallow some pride and take whatever job you can get to earn some extra money. McDonald's and Wal-Mart are always hiring.

    Whatever you do, keep the roof over your head, the lights on, food in your stomach and clothes on your back before you put one penny into their hands. You have to have these things to maintain your sanity and if your credit gets dinged up because you bought bread and milk instead of paying your CC minimum then so be it.

    I'd also recommend, go to a book store and cruise the financial section. There are several authors who have excellent plans on paying off debts and saving for the future. I recommend Dave Ramsey, and site several of his strategies in this post, but there are several other good ones that you could check out as well, like Suze Orman. Then stop by the library on the way home and check-it-out.

    I've lived for almost ten years without a credit card and won't ever own one again.

    Good luck and God Bless,

    Lance
     
  9. TruckNutzDude

    TruckNutzDude 1/2 ton status

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    Re: getting out of debt Q\'s

    I just got out of the boat you're in now. I've got $7,500 in Credit Card debt (well $1,000 is a loan from the bank and $350 is a loan from a friend) I was out of work for about a year and had no income at all so I had to use the CC's to pay my bills. It sucked but I got by. I'm working on transfering the balances to one or 2 cards to save on payments. I just sent a transfer request in today for almost $5,000. Hopefully I get it since it's for 0% until August /forums/images/graemlins/crazy.gif
     
  10. thatK30guy

    thatK30guy 1 ton status Premium Member

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    Re: getting out of debt Q\'s

    Apply for a new CC and hope you can get a higher credit limit. If its high enough to roll both accounts over to it, the payment should be cheaper. I think a $4000 line is somewhere around like $140 per month or in that ballpark. /forums/images/graemlins/thinking.gif
     
  11. R72K5

    R72K5 Banned

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    Re: getting out of debt Q\'s

    lefthand!
    what and how exactly should i talk to these two places i and in debt to in order to re negotiate my percentage rates ? i just sold my truck literally a few minutes ago for 500 bucks and i want to use most of that to pay toawrds these debts but im unsure how i should go about it or when- before or after i renegotiate the percentage rates ? also i have a motorcycle i could sell for about another 500 but i gotta get title transfered to my name(into my name in which i still never have gotten a chance to do since i traded my torch setup for it last summer), thats 65 bucks, so i dont know if i should use some of this 500 to do that so i can then sell the motorcycle when title gets here in about a month after i go to DMV with it ? what should i do ? also ive got a 92 cutlass supreme that the neighbors are going ot buy back for 900 when i get the replacement engine put in in which is ready to go in but been bad weather so havent been able to do yet, title is already in their name and car is in my posession until i can get engine in,.

    and i dont have any pride to lose by working at any places such as wal mart etc but i am limited in what i could do- i could never run a cash register so id have to try for stocking shelves type of work or i dont know. and i live with grandma so no worry on rent etc currently,

    we dontr have a book store here, just a small public library, so hmm..


    sounds like next step is to call gateway and the credit card and re negotiate perecentage rates, i just need tips on how to talk to them to accomplish such, then after that i could get this paid off alot easier and also at the same time im looking for any work i can find- of course.


    also getting one CC with 3500 or 4000 limit i think would be impossible for me now with my record, the card i owe to now was set max at 2500 and half that for cash and other half for credit, i highly doubt that i could get one with any more than that now after all of this- and one thats 0% also for certain length of time

    hmm.

    thanks!
     
  12. 84_Chevy_K10

    84_Chevy_K10 Banned

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    Re: getting out of debt Q\'s

    Any moron could run a cash register.

    In the sake of not bringing the old Tim back, I'm simply going to tell you to go get a job. This is the land of oppertunity.
     
  13. ryoken

    ryoken Puppy Fabricator Premium Member GMOTM Winner

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    Re: getting out of debt Q\'s

    most of the times you can "settle" with these companies for a lesser amount if you pay in full. i had the same issue about 20 yrs ago with a Discovery card i racked up. think i owed em $1200 for some tires and rims and it went to about $2000 cuz i couldn't pay em. think i settled it for about $1000 after a year or 2 of barely paying anything. the key is finding a way to pay a decent chunk at once...

    good luck...
     
  14. R72K5

    R72K5 Banned

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    Re: getting out of debt Q\'s

    interesting, 95% exactly identical debt as my gateway one, hmm.. evne with the period of time of lack of ability to make any payments and all



    very possible way of taking care of these or one of these debts, especially the gateway one since it is so old and so forth, humm


    thanks /forums/images/graemlins/laugh.gif
     
  15. R72K5

    R72K5 Banned

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    Re: getting out of debt Q\'s

    [ QUOTE ]
    Any moron could run a cash register.

    In the sake of not bringing the old Tim back, I'm simply going to tell you to go get a job. This is the land of oppertunity.

    [/ QUOTE ]

    land of opportunity my ***

    and as a matter of fact i once did have a cash register job at a local gas station and i could not do it, i hate the stupid things they are insane and thats all there is to them, if its not windows based then i cant run it, but i cant run windows based games and programs either, so.. but i can build a tower from scratch though, etc.


    thanks
     
  16. jeffro

    jeffro 1/2 ton status

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    Re: getting out of debt Q\'s

    my guess is that you're going to be in collection soon. Screw em. Credit isn't that important...unless you want to be in deeper debt. It's ironic that the people who need credit the most are the people who can afford it the least. I bought a computer from CompUsa years ago and i hate to say how much I eventually paid with interest but it was stupid when a new puter is only 700 bux. If you can't save 700 bux what makes you think you can afford a monthly payment? None of this is to be considered financial advise since I'm a moron anyway.
     
  17. R72K5

    R72K5 Banned

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    Re: getting out of debt Q\'s

    youre not a moron, you make good points totally, so true, i agree with what you are saying, use of credit is a trick to help places become rich off you and cause nothing but problems in most all cases.
    thats whjat i beleive at this point
    ill never be able to own a new car or anything unless i went to hollywood or won a lottery or something else crazy like that so what the heck... will eventually have some savings finally, but it wont ever be much at all, so dont have much to ever look forward to really, wont be able to go to any schooling or get a real nice job or anything, so hmm.. unless something magical happens somehow,

    thanks
     
  18. Lance

    Lance 1/2 ton status

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    Re: getting out of debt Q\'s

    Precisely as Jeffro stated, tell them you can't afford the minimum payments and if they don't help it could go into collections and if that happens you'll just declare bankruptcy and good luck getting their money then. Don't be disresectful and TRY to keep emotions out of the deal. All creditors have room to negotiate on their interest rates and if the first person tells you "no", ask to speak to their supervisor and so on until you get satisfaction. This may sound corny, but tell them you realize you are in trouble and are trying desperately to handle this in a mature manner and realize you have an obligation to pay back the debt, but you need their assistance. Whatever you do, once you reach an agreement ask them to submit it writing. Be sure to get names, numbers and times you speak with people and whatever you do, don't let up.

    Be sure to tell them you'd be willing to make a large lump sum payment towards the balance once they lower the interest rate, and provide written confirmation of the same, as a "ood faith" gesture.

    Although I think more credit is a bad idea (I'll admit, I've been brainwashed), have you tried to get a signature loan from your local credit union. They are USUALLY more lenient in extending credit to marginal lenders (which you sound like you may be), that is if you can demonstrate the ability to pay off the loan. I would definitely not recommend getting any more credit cards, because it only opens you to more problems.

    Send me your address, I'm giving you my copy of "Financial Peace" by Dave Ramsey. It's has some good advice in it if you'll commit completely. It also has strategies and sample letters to submit to creditors, collection agencies, etc. Maybe it'll help you and prevent the worst from happening.

    Good luck,

    Lance
     
  19. gotmud?

    gotmud? 1/2 ton status

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    Re: getting out of debt Q\'s

    [ QUOTE ]
    Credit isn't that important...unless you want to be in deeper debt.

    [/ QUOTE ]

    Or live in the back of your Blazer or in the ghetto cause no one will rent to you because of your credit history. Bad credit also affects what you're charged for insurance. [​IMG]
     
  20. Lance

    Lance 1/2 ton status

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    Re: getting out of debt Q\'s

    Also, if you have about 75% of the original loan amount and can pay it all at once, ask them if they'd take a settlement on the FULL AMOUNT. That means the account will be considered "Paid In Full". Be sure to get it in writing and provide nothing, not one red cent, until you read it and confirm it's what you verbally agreed to. Be aware though, it'll booger up your credit especially when it comes time for home buying. It may make you a renter for a few more years than you'd probably like, but if you are in trouble now.

    Dude, you just gotta do what it takes, no matter how uncomfortable it makes you, to pay this debt off. I worked at Home Depot every weekend for almost two years, in addition to a full-time 5-day-a-week job, to try and accelerate paying off some bills my wife had accumulated before we got married in addition to the last bit of my student loans. So, it can be done. you just have to get serious enough to do it..
     

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