Massive Credit Card Debt

I have about 7500 in credit card debt. I know this may not seem like a lot to some people, but I'm only 24 and I bought a truck that I probably shouldn't have and the payments on that are what's killing me. I've decided that the last thing I want to do is get rid of the truck. I have fallen behind on some of my payments and am acquiring late fees and higher interest rates, and my credit is being shot to hell in a hurry. I have applied for several personal loans to pay off my credit cards and get one lower monthly payment, but I've been denied every time because of my poor credit. I don't really want to go through a credit counseling service yet, because that shows up on my credit report and will further reduce my score. I have worked thorugh my budget with a fine tooth comb and I've done calcualting with differnt loan terms/interest rates/etc. and I know I can afford one, but how do I get one? Any advice you can give would be greatly appreciated.
I would appreciate worthwhile answers only, please. I've only had the truck since March, so my loan would be way upside down, and with my credit what it is now, I wouldn't get anything reliable for the loan I'd get.

Hi Nick:

Obviously you don't want to get rid of the truck. This appears to be your priority. However, you've already experienced difficulty getting a consolidation loan. Having said that I would suggest:

1. Figure out how much you can send realistically to your credit cards.

2. Call your creditors and explain that you've overextended yourself. You know that you've got to pay your bills and want to do the responsible thing. Work out a payment arrangement. Get names, and dates of each person you speak to.

3. Cover every conversation with a letter outlining the payment arrangements and the person you've spoken to. Send it via certified, registered or overnight mail.

4. Cover your assets by keeping copies of the letters and confirmation of receipt in a safe place.

5. Get a part-time job. This will help you earn extra money and keep out of spending trouble.

6. Cut up or shred all your credit cards. You won't need them to keep your credit active because you'll be making payments on your truck.

7. Follow your payment plan exactly.

It is very important that you clean up your credit now. A poor credit score can cost you thousands in higher interest charges. It also affects how much you pay for car insurance, whether you can get utilities without a deposit and possibly your ability to get a job.

Good Luck!

Anne

2006-08-09 03:34:42 by Nick

On Hardball, Mike Barnicle and Margaret Carlson do their best to paint Obama and McCain with the same "elitist" stripe, and Carlson ...

A week or two ago, when congress was still debating this "credit card bill of rights", there were stories on the news featuring people who had massive credit card debt. There was one story I saw about a woman who got a credit card at age 20 and by age 22 had amassed $30,000 in credit card debt that she had no ability to pay off. The story wanted us to be sympathetic to the woman.

Why should we feel bad for people who rack up tens of thousands of dollars in credit card debt? How is that related to sneaky practices by the credit card companies?

I don't think we should feel bad for them. I am one person who has a TON of credit card debt, its my own fault, and I in no way expect anybody to feel bad for me! Its my own fault and I will get out of it. The thing that I do expect is that there be some guidelines for credit card companies in which they aren't allowed to treat me unfairly because of the situation that I am in as long as I am paying them each month, at least the minimum (although I pay significantly more than that), and I don't make payments late. Some credit card companies have adjusted their interest rates to unreasonable amounts and people can not get ahead. That isn't fair to people, and I do feel bad when they have done NOTHING wrong and were paying all payments on time, making progress, and then the credit card company increases their rates just because they want to pad their income more!

2009-05-26 14:25:55 by agactual

Price: $22.95

Also I am the United States of America.



All joking aside - Do you think piling on massive amounts of debt and inflating the system like a balloon at a Macy's parade will save the country? Please explain why/why not.

It wont, and it cant. It can only make things worse in the long run.

What it can do is disguise things for a bit, and it can definitely expand the power and size and cost of government.

Remember, the Keynesian view of economics is supported by politicians for one reason. It is all about governments ability to take on debt in the name of citizens, and inflate the currency behind peoples back in order to give away money to where the central planners decide. These are people who thought FDRs 17 year depression needed MORE spending. These same folks ignore how fast the market recovers without government intervention, like the 1920-1921 depression.


The only way to save us, is for citizens, and government to cut spending, and save. Pay off debt. Government must reduce its size, and cost.

2009-01-14 20:34:38 by Briantology

I have racked up about 27k in credit card debt due to online sportsbetting over the past year. Problem is I don't have the money to pay it off. I am just a 19 year old college student and looking back on it..I don't know what the hell I was doing. I realize I have a problem and have quit for good but what should I do? If I confess to the credit card company what will happen? Technically speaking it is illegal for them to fund online gambling sites but the websites disguise there purchases. In fact I, when they used to call me about the deposits I was making I told them it was a sportsbetting site and they never said anything of it. Can I use this to my benefit. My credit is pretty decent right now..about 722...but I am assuming it will tank. I was thinking about taking out a private student loan and paying my cards off. Should I get a lawyer? Any help, advice is greatly appreciated.

There are some weird things about this story that I am not sure about.

First off, I've never heard of a 19 year old with a 722 credit score, especially with that kind of credit card debt.

Secondly, how does an 18 year old student with no credit suddenly get credit limits that allow him to spend $27K over the course of a single year?

Third, if you have no money I again wonder how you convinced these credit card companies to loan you that kind of money in the first place.

But ignoring these strange anomalies for a moment, the best thing I can suggest is getting with one of those debt management services. They will help you to negotiate lower interest rates and a pay off scheme to get out of debt. Max out on those student loans because the interest rate is way lower than credit cards. Pay your way out of this.

It's going to take time, and its going to take effort, but eventually you will pay it off.

There have been cases in the past where a good lawyer sues the credit card companies for 'allowing' a person to get in this much debt through illegal gambling. Sports betting is probably the most illegal of all online gambling. Most of it is really not even considered illegal, even after the change in the law. But sports betting is specifically mentioned in some 1960s telephone betting act, and can often be argued as pertaining to Internet gambling.

So maybe with a good lawyer you can argue that you were a naive young idiot, suckered into a gambling addiction facilitated by the credit card companies, who were illegally participating in online gambling. With a good lawyer you might get away with it. The issue becomes how you pay them. Unless you want to get really cocky and sue them for a few hundred grand for all the pain and suffering they have caused you.

Finally, that guy who answered earlier is correct. These days if you file bankruptcy the credit card debt still follows you. Thanks to lovely Mr. Bush, the new law basically takes our tax dollars that fund the court system, and has the court system act as debt collectors for the multi billion dollar credit card industry. So unlike before when credit card companies were SOL, now they have a free debt collection agency run by the government collecting their bad debts. It's a win win for them.

So if you file bankruptcy, there is a very good chance you will not only ruin your credit but you will still end up paying back all that money.

Whatever you do, stop the sports betting. You have clearly demonstrated that you suck at it. You might just as well have spend $27K on the lottery.

2007-05-06 02:30:30 by mohit062005

I currently have over $13, 000.00 in credit card debt, and as a result have withdrawn from college. Since February I have been working, but feel the need to return to school to finish my last year of college. I would like to return to school in the summer, but would like to continue working part-time to pay of my debts. My dilemna is whether I should find a full-time permanent job and go to school part-time in order to pay off debt faster, or get a part-time job and go to school full-time in order to finish school faster, or put off school till debt is paid, or put off debt till school is finished, so I can make more money with my degree. Ideally I would like to graduate with little to no credit card debt. Also, I need help with money management, budgeting, and tips on saving. Please HELP.

Uh, I'm going to school full time, and working full time, and have no problem with my classes. If you apply yourself this shouldn't be a problem.

2008-04-03 01:19:44 by CalCreeBoy