i have the worst credit, not talking score of 500; below that and i have never paid any of my creditors: HELP!
When i was young in college i received 3 different credit cards, maxed em all out never repaid them, i also took out many money payday loans, never repaid those, and now i can’t get anything because my credit is so jacked up. i also have some other things that are on my credit report & i don’t know what to do i have never purchased anything and basically i feel trapped because i will never be able to get anything without a decent credit rating. should i file bankruptcy or where do i begin?
Posted May 7th, 2010 in When To File Bankruptcy. Tagged: amp, credit cards, credit rating, credit report, money, payday loans, should I file bankruptcy.
There is only one thing to do, and you will feel SO MUCH BETTER when you have done so!
First, make a plan.
1. List all your debts to be repaid. Then put them in order with the one with the highest interest first and so on down the line.
2. Make your balance sheet. List all your assets (what you have, including your possessions no matter how old) and your debits (what you owe). The difference is that "balance," and although you may be technically bankrupt, try to do this without declaring bankruptcy.
3. Make your budget. List all your sources of income, like job(s), interest on savings, or anything else. List all your necessary expenses, including food, shelter, and medical. The difference is what you are going use to pay back what you owe.
4. Now study that HARD! Find at least one way to ADD to your income, and find multiple ways to CUT your spending. Painful as it is, this is what you must do. I assume you are on a cash basis now, but if not, get rid of any remaining credit, such as a gas card. If you have one of those high interest cards, get rid of it. No cell phone, no nothing. Cash basis for now.
5. Set some realistic goals. I suggest five as a maximum, as you want to succeed, so they have to be achievable, but you must really go for them. Get ready to hit this HARD!
6. Finalize your repayment plan. As an example, let’s say you have 12 bills to pay. Four of them are at sky-high interest, four not so high, four are family loans and maybe even interest-free. And let’s say you also worked out that you could pay $500 a month on this big debt. I would suggest you plan pay $380 a month on the highest four ($95 on each), $80 a month on the next four ($20 on each), and $40 on the last four ($10 on each). The point is that you would pay off the highest interest ones first. Once these were paid off, you could work down the other ones that are less costly.
7. Contact EVERYONE and tell them you are planning to repay them all and that you have a plan to do so. Ask them for any forgiveness they can accord you, but COMMIT TO REPAY AND DO IT.
And then get busy and do it. Only in this way will you feel better. Once you get going, you will start to feel better. You will be motivated to make this plan work. Your sacrifices will have meaning, even though they will be difficult, as they will be a proper part of your maturing that you missed earlier. Even though you may get sick of NO dinners out, shopping at Goodwill, and riding the bus (oh yes, sell your car), it will be totally worth it! If someone graces you with a gift of money, you know where it goes…
And when this is all over, that $500 per month can go to savings and you will be a rich person one day. Furthermore, as you get raises, put them towards this project. Keep a tally, and watch with excitement as the balance drops on your debt, knowing that one day, you can watch with the same excitement when your savings balance goes up!
Good luck to you!
May 7th, 2010 at 7:00 pmBankruptcy will not help your credit score.
It was easy to get in your situation, but it will not be easy to correct it.
May 7th, 2010 at 7:00 pmThere is no easy way out. Grow up, take responsibility.
May 7th, 2010 at 7:00 pmYou can file bankruptcy on the credit cards, but payday loans keep getting higher and higher and higher and higher, and they never, ever stop collecting interest. I feel sorry for you because you will probably never, ever get out of that debt unless you win the lottery.
May 7th, 2010 at 7:00 pmBankruptcy is the easy way out.
You should talk to a credit counseling service. It will take some time, but if you stick with it, you can make it better.
May 7th, 2010 at 7:00 pmCan you blame anyone for not giving you a loan?
Credit card – just another type of loan- and you have never paid those. You took out pay day loans and never paid those. You have taken out all these loans and never paid them. A lender would have to be nuts to loan you money. Why would they expect you to pay them when have never paid them in the past? You take out a loan – give your word that you will pay it back and don’t.
Not trying to be mean– just giving you a look at reality. You are an awful credit risk!
Declaring bankruptcy will not make those unpaid loans go away. It’s not going to make you a better credit risk.
Your best bet is to start to pay your debts. Pay all of your bills on time. It may be worth it to see if you can call some of those creditors and make payment arraignments. Would they change how those debts appear on your credit report? It might be worth looking into.
May 7th, 2010 at 7:00 pm