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credit recovery (Read 2007 times)
goPeacefully
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there is a light that
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credit recovery
Mar 7th, 2008 at 8:06pm
 
ok, so at 22 im sooo over my head in credit debt its absolutely ridiculous!!

i started building my credit at 18. i had a great paying job for a couple of years...during which i opened 4 credit cards in order to establish a good amount of revolving credit (as i was advised when i went in to buy a car for the first time) to really boost my credit score...things were great...until life decided to throw me a curve ball (or 20!)...i ended up having to relocate and things just havent been the easiest since...i have an average paying job now (not bad, but far from good). i dont qualify for any school loans or any financial assistance, so i had to resort to paying for college with my credit cards. i also spent some time in the hospital and since i have no health coverage, am stuck with $$$$ in medical bills..and now i cant for the life of me recover...im growing deeper into debt because my paychecks cover just the bare essentials...a roof over my had, electric/power, and food...i simply cant keep up with anything else Sad

i want to be able to have great credit like i once did, but i have NO way of even beginning to dig myself out of this hole!

has anyone else had any success in this type of situation??

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CarrieLee
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Re: credit recovery
Reply #1 - Mar 9th, 2008 at 1:20pm
 
Are you able to make the payments on time right now?
If you are late, they will jack up your interest rate and your minimum payment will be a lot higher.
I was late on one card and they jacked the rate up to 31%.
The thing that saved me was taking out a loan against my retirement. I am having the payments taken out of my paycheck,and I'm only paying 5% interest.
I was able to pay off the highest card, and I closed the account. I payed of all my small cards and now only keep one card, Chase.
If you borrow money from someone or or are able to qualify for a small loan, try to pay off your highest interest card. You'll probably pay less interest on a loan than what your credit card charges you.
Another thing you might try is talking to someone in Customer service telling them of your situation. Maybe they can lower your rate to help you out. You could also check to see if any of your cards offer a balance transfer at a lower rate. That way you would put one or more cards on a lower interest card.
Good Luck to you,
Carrie
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Rose_Red
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Re: credit recovery
Reply #2 - Mar 10th, 2008 at 12:32am
 
There's a tremendous problem with debt in the UK on credit cards and there are plenty of places to go for 'debt management'. I know that they recommend you call the credit company and talk to them - they are often willing to come to an arrangement over payment.
Loans...I'm not so sure. I would never take one, except in the short term and so far that hasn't happened. The danger is with lots of people - they think they have cleared their cards and then go on to spend again and run up the same as if not more debt - and they have their loan as well.
Can you find another way of making money to clear these debts? Anything you can cut down on? Find cheaper accomodation? Sell things?
It's a hard lesson, but worth learning early - you have to take responsibility for your spending and not use cards - in fact, cut them up!
Oh - I don;t know about the US, but in UK there are ALWAYS credit card companies offering interest free cards for a certain amount of time - this can save you hundreds. YOu might have to do it several times but you can get away without paying interest for years. And they like people with debts.....
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goPeacefully
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there is a light that
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the city of sin&bright lights
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Re: credit recovery
Reply #3 - Mar 10th, 2008 at 8:18pm
 
you know, i tried calling one of the credit companies and they at first agreed to work out payment arrangements...i set up 3 auto payments 3 consecutive months (which i had to do to qualify for a 'financial review' to lower my payments) but after the 3 months they're "lower" payment plan consisted of several hundred dollar monthly payments! *yikes!* which i CAN'T do at all...

what i'm thinking about doing is getting a second job and setting aside most (if not all) of that paycheck to go to my credit card payments...

in response to rose_red...i've cut back pretty much as much as i can. i room w/2 other people and i carpool to keep down expenses...i'm just strapped...

but like you mentioned...it's a hard lesson...learned early for the good i guess
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Rose_Red
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Re: credit recovery
Reply #4 - Mar 10th, 2008 at 11:46pm
 
/\ It happens to loads of people - and some never learn. I was watching a programme on debt, and this idiotic couple were $200,000 in debt and whining that it wasn't their fault 'The bank gave us the money'.
Well, yes, banks will - because they get it back with interest.
It's hard to economise sometimes - but worth it in the end. A second job in the short term using ALL the pay to work on the debt is a really good idea - the more you pay off, the quicker you'll be free of the worry.
Also - if you are tempted to buy something, just think ' Is this going to really improve my life and make me closer to being debt free?' This was one of the best pieces of advice I read.
I've always been good with money - but I've been married to, and friends with people who aren't. To really economise you need to look at where the money you have goes - I had a friend who spends $15+ on coffee and cakes, buys all the magazines and then wonders why she has no money! If you can give up a few pleasant but unnecessary habits for a while, you'll find that you do have that little bit more cash.
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goPeacefully
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there is a light that
never goes out [ch9829]

Posts: 1052
the city of sin&bright lights
Gender: female
Re: credit recovery
Reply #5 - Mar 13th, 2008 at 11:12pm
 
the sad thing is that i am good with my money as far as budgeting goes, i can make it stretch...i live VERY simply and am not AT ALL high maintenance...especially for my age group and the city i live in...most guys and girls my age live fast and high priced lives and don't double think it for a second...

it's just tough when you've already over extended yourself. i know i can eventually get myself out, but sometimes i just feel sooo incredibly hopeless...i know i can learn from this and never allow this to happen again...the only comfort i have is that none of my debt was run up on petty and stupid things...my debt is school associated credit card bills and hospital bills
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