Comments on: Why You Can’t Bank on Consolidating Your Loans

By: Courtney A

Courtney A — Thu, 27 May 2010 01:21:03 +0000

$18,000.00 in debt and I’m only 22 HELP!!!!?
Having an unexpected child, having my appendix removed, my job closed for business, and going to school all at once caught up with me. Wasn’t able to pay bills, so i got credit cards. I didn’t make enough money to pay those bills, and my home expenses, so i took out a loan against my car. My bills are more than what I make a month, and everything is only getting worse, and I don’t know how to get out. If I cancel my cards, then there home bills and baby food that I can’t afford to buy. If I don’t cancel the cards they are never going to get paid off.

Do those commercials on the radio that say "consolidate your debt" "cut your debt in half" "credit card debt a problem? we can help" really work or are they just a scam?

If i could some how make everything one giant lump of money I owe, and pay one monthly payment that could help tremendously, but I don’t know where to go or who to talk to? I’ve gone to my bank, and they cant help me. All they could do was combine part of 1 of my credit cards, but I would still make the same amount of payments, but I would owe more a month.

My unpaid bills are starting to back up on each other.

I can’t get any help from the state, so don’t suggest it.

Has any one else gotten them selves out of major debt? PLEASE HELP ME!
I have found a job, but while I wasn’t working was when i racked up all that debt. The state says that the job I have now is above the minimum for what they will give help out for. Basically saying that it’s my own debt and they’re not going to help me with anything because I make to much money. Also because I have a semi new car they consider what it’s worth when they look at my assets and such. But… since I have a loan from the bank against it… I can’t sell it. ( i wouldn’t get enough back to pay that loan off, I’ve tried)

By: coleblondehead

coleblondehead — Wed, 26 May 2010 15:39:59 +0000

I wouldnt advice debt consolidation, most of tem are ripoffs, fly by night companies, one of them kept 800 dls of mine didnt pay the creditor, closed their offices. You know you are very young, you could
file for bankruptcy and all debts would be erased of course you would
lose some benefits, the car probably will be repossesed, maybe you
can get a smaller car. But that way in 7-10 yrs. you can start fresh
even sooner. Because the way you explain yourself, your weakness
are credit cards so even if you do consolidate my fear is that you would
get another and another and youre back where you started. Dont you
think so? Think about it. Bankruptcy is not that big of a deal anymore
its an option of a young person like yourself or get a 2nd. job to
help with credit cards and just close them all and be firm and dont
open none come hell or high water, thats what I did. I cut all of them
in half. But I only owed half of what you do. Dont open anymore.
References :
Good luck!!!!

By: rayt721

rayt721 — Wed, 26 May 2010 15:37:59 +0000

First of all at 22 you could consider, but shouldn’t, filing bankruptcy on the debt and if appoved would not owe any it. You may be able to keep the car although it depends on the amount of equity in it. Those are situations that can be addressed by a bankruptcy attorney. If a chapter 7 is approved, you owe nothing. If they put you into a chapter 13, it’s a reorganization where you repay creditors what you can repay and they write off the difference. Again, neither are a good option.

You may wish to consider a free consumer credit counseling service. They can help you negotiate payments but will have to stop using the credit cards all together. You can rebuild your credit and it’s a voluntary plan. Remember… you didn’t get into debt overnight so you won’t get out overnight also. Check with NFCC.ORG at the link below.

You have to do SOMETHING. Consider increasing income, reducing expenses, negotiating for lower interest rates and better repayment terms. Yes, $18,000 is alot of money but it’s not worth beating yourself up over. You’ve got to get out of the cycle.

Might I suggest checking out Dave Ramsey (Fox Business TV on cable or his books from the library)???

The only way to achieve your goals are to set them, make them realistic, write them down and follow up on them.

Start with NFCC…
References :
http://www.nfcc.org

By: allterrainwarrior

allterrainwarrior — Wed, 26 May 2010 15:35:59 +0000

WOW C– You are in a tough bind and the last thing you want to hear is how much you screwed up. You don’t need any more negative talk since your finances are already in the negative.

What you need to do. Get rid of your credit cards ASAP. The reason I say this is because you are using this as an outlet to when you are in a bind and this is your get out of jail free card. But what it does is; little by little continues to dig your financial depression deeper. It provides short term relief for a long term problem and the problem is your ability to live withon your means. You may not make a whole lot of money, thats ok. But you need to remember that what you make you need to live off of three quarters of that or less.

You have to develop a strict budget. And what I mean about budget is you have to design a plan that says this what needs to be paid on the 1st and the 15th and this is how how much is going into my savings. many people budget and don’t budget for thee fun things they love to do. If you budget for it than you can do. But only you know what you can do. So you probably can’t eat out at the Cheesecake factory this week, but you can afford to go to a movie, eat ice cream with your kid and hit the Hong Kong Buffet. You have to start changing your frame of mind on how you spend and what you spend.

With regards to your debt, you can call the companies you owe and ask them yourself if there is anything you can do to reduce your debt. your not going to have instant good credit right away but you need to start working on paying your debt off. It may take 3 or 4 yrs, but remember this in 4 yrs you are going to be 26 yrs old with or without your debt paid off. So start now and in a few yrs it will be paid "AS LONG AS YOU DON"T MAKE ANY MORE DEBT"

Think of it this way in four yrs you need to pay off 18K thats approx 4k a year or 333 a month. It may be tough but you have to do it and the lesson you will learn from this will make you a much stronger mother and person still at a very young age.

But let me warn you, if it were that easy, every body would be doing it.

My wife and I ate Ramen Noodles and Fish caught from the river until I paid off all of my debt. We had to resource and live on less than what we make and it’s amazing how short of a time it took to get it all together. Im not going to fluff my feathers on this one, but all I can say is we don’t live from paycheck to paycheck and that in itself is a great accomplishment. So develop a plan and refine it and develop it some more until it supports you and get you out of debt without putting you in more debt. You can do it. You just have to believe you can.
References :

By: enn

enn — Wed, 26 May 2010 15:33:59 +0000

First of all, you DO Qualify for help from the federal government, if not from the state.
You need to go to the welfare office and sign up for food stamps for yourself and your baby. You qualify for food on a monthly basis. Don’t let the people there tell you you don’t qualify. If you have little or no income, or your income is below the poverty level, you qualify for food stamps. This takes care of your food needs.
You also qualify for Women and Infant Children assistance, also known as WIC. This is a FEDERAL program that provides milk, cheese, cereal, bread, and juice to women who are nursing or raising children under the age of 5. You need to emphasize your debt to the counselor there and explain that all of your income is going towards paying off your debt.
Next you need to call the hospital and ask if you can make minimum payments towards your bill. Ask to speak to a counselor or an administrator who can help reduce your bill or write off some of your debt to them.
As for your credit cards, I cannot emphasize this enough: EVEN ONE DOLLAR A MONTH IS CONSIDERED AN OPEN ACCOUNT.
All you have to do is pay one dollar a month on every credit card each month and they legally can not put you into collections, because you are making an honest attempt to pay money towards your bills. They can not call you to harrass you for more money.
Next you need to look in your phone book for a LOCAL credit counselor. I counted 22 in my hometown phonebook alone! A human credit counselor in your own town will help act as an advocate for you in contacting credit card companies and arranging for lowering your interest rates. Your credit may be suspended for a while, but a credit suspension is better than going into collections.
Next you need to go to your church group and ask for help. If you aren’t going to church, start. Most churches have financial programs or financila assistance of some sort for their members to help pay off your debt. This could be in the form of working for the church or being part of a group that financially helps others as they help you. Most churches also have a network of people who can help provide you with things you need directly such as clothing for yourself or your baby, assistance with finding a cheaper place to live so you can pay more towards your debt, and other services. Many church members volunteer to help with babysitting, fixing cars, helping donate cooked meals when you are sick, they will help teach you home management techniques so you can put your money towards your debt but still have items you need for daily life for free or really cheap. They will also help provide an emotional network of friendship and emotional as well as spiritual support.
You can also go to your counselor at school and ask for help with financial aid. You may not qualify for grants but sometimes the school can grant you free tuition. Your school counselor can also help refer you to a debt counselor as well as help you find student programs such as child care while you are in school.
You need not go through this alone. There really are people out there who can help you.
References :
experience helping another friend

By: Pam s

Pam s — Wed, 26 May 2010 15:31:59 +0000

well, you saying that you cant get help from that state is BS. IF you can’t afford to buy baby formula, then you can always go to places that can sell necessaties such as churches, homes, or health and welfare places. Talk to govn’t agencies to help with that.

As for getting out of debt. It’s a slow process. It’s going to take a long time and there’s no "easy" way to get about it. You have to cut everything down a minimum spending. Get only necessary stuff and cut up the credit cards. They are not going to help at all. Call your creditors up and tell them about the situation and they will work with you. you shouldn’t have to worry about school. all school loans are defferable until your graduation or you quit school. The only bills that are a must is water, electric, rent, and food. If your house is too expensive, you can always apply for section eight housing allowance that will help for food and rent. Basically don’t spend any money and pay your bills as much as you can. It’s slow but possible. I’m sure your looking for a job as well. That always helps too..

Trust me, I have more debt than you and I live just fine. It’s a matter of balancing what you have and where your money goes.
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By: You Are a Moron

You Are a Moron — Wed, 26 May 2010 15:29:59 +0000

I set up several online businesses and got myself out of debt, but I recommend you to either file for bankruptcy so they cant sue you in the meantime, or join one of those debt consolidation places. Be careful as about 60% of them are scams. Only go with a company after you do alot of research on it, not just through the BBB but do google searches on the website to see if other people have mentioned it being a scam on any other sites. Theres tons of ways to make money online so you might want to check out a few ideas at keafy.com and see if any of them would work for you. If not, your just going to have to get a second job. Hey, if all else fails, I live in Thailand alot of the time and if you can just do a few things to make money on the internet, you could comfortably live on the beach in a country like that where things are like 10 times cheaper. I know it sounds crazy if you've never done it before but once you cross the ocean its just a pond after that and you dont have to make as much money to live good over there. When I was in debt thats what I did and I stayed there for about 8 months. The little bit of money I was making on the internet allowed me to live there so I didnt have to work a job and that gave me more time to figure new ways to make even more money on the internet, which got me out of debt.
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By: Josh S

Josh S — Wed, 26 May 2010 15:27:59 +0000

if you don’t make enough money to cover the bills I cannot see how it is possible that you cannot get some type of government help. don’t go with those companies that you see on tv….they will pay off your debt and you will pay them back in one lump (extremely high interest loan) so in the long run you will lose money. Call the credit card company and explain your situation…they will most likely put a hold on your account and put you on a payment plan. Same goes with the hospital bills. A lot of hospitals have a community program…they will help you pay part of your bill. Sending five bucks a month to the hospital….they cannot put it in collections…they may threaten to, but legally they cannot as long as you make an effort to pay. There is got to be something that you can cut out of your life for the time being. Going out to eat? cell phone? Internet? cable? You have a child and responsibility to provide for that child…so you should temporarily cut out any luxuries that you have until you are back on your feet. Seriously? no food stamps? no medical assistance? Housing assistance? child care assistance? wow you must live in a rigid state that does not like to help out people in dire need.
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By: megan rae

megan rae — Wed, 26 May 2010 15:25:59 +0000

oh my poor dear you are in a deep deep hell hole.
i really dont know what to say other than, the best of luck to you..
try getting a loan! if your credit is good that is.. if not.. i dunno.. im sry…. i hope you find some help!!!! GOOD LUCK
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By: TJ

TJ — Wed, 26 May 2010 15:23:59 +0000

ur pritty stuffed really
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