Credit is shot...

[Anonymous]

My credit shot... But I hope to start rebuilding it...but im not sure how..most of my cards are maxed out...and just trying to pay the minimum is hard... I am already aware that i need to pay more than the minimum but im not sure how to get it done..please help

[Bigreg]

sdwahine you are in the right place!!  Although it seems pretty awful right now, there is strength in numbers!! I, as well as most of the others guys around here, have had to fight and work hard to take control of our credit.  The first thing you can do is get an updated CR from each of the three agencies.  Write some GW letters to those creditors whom you may have "strained relationships" with. Stay current on all of your payments no matter how much it hurts and DON'T EVER BE LATE!!!!  It takes time and I'm still working on it. Read some of the other threads: Credit 101, abbreviations, FICO scoring and you will be surprised how smart and knowledgable these guys are around here.  Good luck and start reading!!

[fishbjc]

A.  Call the creditors, explain and ask for help.

B.  Join a Debt Management Program.  It's usually a five-year plan and they are usually able to greatly reduce your interest, lose the over-the-limit and late fees.  You cards will be closed during that pay off period.  You pay them direct for a small monthly fee and they send the creditors the money.  It's your responsibility to review each credit card statement to make sure the payments are being posted properly

C.  The company I used I can highly recommend.  Send me a PM if you are interested.  I've sent several people there and they've been treated well.

D.  Pick up a part-time job to help make the minimums.  Return everything you can and sell the rest on eBay (as long as it's tangible).  Craigslist is another forum. 

E.  Review the bankruptcy forum here.

F.  You can stop paying all together and get hounded and harassed.

G.  Take out a consolidation loan and cut up your cards or cancel them.

Once you begin the rebuild process you'll feel so much better and your sleep pattern miraculously improves.  We're here to help!!!!!!

Please post your cards with credit lines, what you owe and if you're late, etc. if you want us to take a look at what you have. 

[Anonymous]

Unfortunately i owe a lot

Auto Loan 16300

Card #1 8838 card limit 8600 I am already on a dmp with the card company  (30 days late) nov 08

Card #2 3813 card limit 3600 (30, 60 days late ) nov 08

charge account 3128 charge limit 4000

Card #3 2848 card limt 3000

student loan 1414

Card #4 776 card limit 700 (30 days late) nov 08

[fishbjc]

Time to begin rebuilding as all is not lost.

You're at approx 102% utilization, your score is taking a HUGE hit because of this.

If the $700 limit card hasn't been CLOSED, get it current because you're going to need to keep an emergency card.  Get it CURRENT and find a way to get it paid down so you will have some room.

Put the $8838, 3813, 2848 into the DMP.  I've sent you the information via PM.  Your monthly payment s/b approx $325 per month. 

Right now your lates & o/l fees are costing you an extra $230+ PER MONTH.  I would (and I did) call each creditor and explain that you are SERIOUS about getting this paid off and are entering into a DMP.  Call the contact I gave you immediately.  This will all happen pretty fast for you.

I don't know what to tell you about the student loan or the auto payment...are they current??? 

[haulingthescoreup]

If you haven't already, make a budget.

Write down everything you have to have: rent/mortgage, utilities, insurance premiums, minimum payments. Then look at where you can cut back: grocery bills, gas. Then look at what you can dump: cable, internet (visit the forums at work or at the library), eating out, clothes shopping. All this stuff will be available when you get through this.

Now look at your take-home pay and think, what would I do if it were cut 10%? 20%? Go back and look at your expenses and see what else can go. Think about a part-time job --weekends, morning drive-through at Mickey D's, etc. I found that when I got a second job, I didn't have the time or energy to spend money.

If you really can't free up enough money from this to attack your debts, then I echo the others and suggest a debt management program. Not a debt negotiation or settlement program; they're rip-offs. But even if you go into a DMP, learn to cut way back as well. In this economy, it's all about living cheap and building up savings as fast as you can.

[oracles]

Kudos to both fish and HTSU.

These are all excellent points.

Definitely take advantage of this wise information so you can be on your way to a happier and prosperous life.

Good sleeping is amazing BTW.

[Anonymous]

Well,  the $700 limit... is not really a card  its more like credit line but listed on my report as a card. As for my auto and student loans they are both current and in good standing.

Message Edited by sdwahine on 02-03-2009 11:56 PM

[Anonymous]

Auto loan for $16.3K?  Can you sell or trade in for something that is worth 1/3-1/2 as much.  Would love to see you cut the monthly auto loan payment and apply the difference to your highest interest CC and get current on yuor payments to avoid the penalties.

[Anonymous]

As mentioned earlier, cut back on eating out. During my time of getting myself under control, I ate cereal in the morning and 1 - $1.50 soup at night (do you know how quick you get sick of soup?), if you're serious you'll do just about anything. You didn't mention if you have kids to support and if you do by no means put them on my bill paying diet!

Best of luck to you getting back under control. One thing about all of this is hopefully you've learned your lesson, as I did, and will never be in this soup again (no pun intended).

One thing I did after making my list was to put each and who was being paid on a calendar (the more visuals you have the better).

Message Edited by RenoFico on 02-04-2009 01:05 PM