Reply
New Member
rwashington89
Posts: 3
Registered: ‎03-15-2009
0

Getting too deep...almost at ends wit

Well heres my situation. I first started out with a Credit Card about a year ago to pay for small expenses. Everything was going good and I was able to pay it off in full every month(I only used it for gas and only used charged about 40 bucks a month.) Well school came around and my mom insisted tht I use my credit card to pay for my first semester and I did(it only came to about 1200). Thats where the trouble starts. I also needed a new  computer and books so I charged them also on a new card that I found that was open under my name. Now a year later I seem to be a bit in over my head.

 

 


Currently I have about 3500 in total debt and it's getting harder and harder to pay the minimum payments anymore. A HUGE chunk of my money is going towards my car then I pay my cell phone and whats left(which isnt much) goes to my two cards. I have no clue what to do now and my minumum payments are getting higher and it's tough to meet them.

Epic Contributor
Creditaddict
Posts: 21,599
Registered: ‎10-23-2007
0

Re: Getting too deep...almost at ends wit

Have you tried getting 1 new credit card with a 0% to transfer both your current credit cards to so you would only have 1 payment and maybe a year with no interest so your payments would actually work on paying that debt down?

or maybe a student loan to pay both credit cards off and then that could be deferred while in school. 

Fico Scores: EQ- 653 Cap1., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
65 Cards and Counting :smileytongue:
New Member
rwashington89
Posts: 3
Registered: ‎03-15-2009
0

Re: Getting too deep...almost at ends wit

I did apply for one but I wasn't approved for it. I'm really looking for solutions fast. If I was able to get my one card with the school tuition on it payed off till i graduated then that would be perfect(one less card for me to worry about lol).
Epic Contributor
Creditaddict
Posts: 21,599
Registered: ‎10-23-2007
0

Re: Getting too deep...almost at ends wit

Have you tried for a student loan, they should be a little easier to come by then credit cards.
Fico Scores: EQ- 653 Cap1., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
65 Cards and Counting :smileytongue:
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Getting too deep...almost at ends wit

If you've got high util in both cards, I doubt that you'll be approved for a 0% BT card, not these days, anyway.

When you said above that you were declined, was that for a third CC or for a student loan? Because I agree, an SL would be the best solution.

Why did your mom insist on you putting the tuition on the card? I generally do that because I'm always forgetting the payment deadlines, and a CC is fast, but I'm able to pay off the CC right away, thank goodness.

If you do qualify for SL's, and you have more school to go, I would plan on paying for your tuition that way, keeping the other stuff on your cards.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Contributor
Uborrow-Upay
Posts: 2,708
Registered: ‎10-16-2008

Re: Getting too deep...almost at ends wit

Welcome to the forum, rwashington89!

 

You've got to cut expenses and increase your income.

 

First off, stop using these cards! Credit is not free money.

 

You don't say if your car is financed or not, just that a huge chunk of cash is going towards it. Are you making payments on this car, or tricking it out with nice shiny 22's? Do you drive your friends around for free because you're the guy with the car? Continue making your payments on time if it's financed, but reevaluate if that particular car is necessary. Transportation is almost always a necessity, but a particular ride is not. Walk rather than drive, if possible. Cut your expenses.

 

Are you in a contract for the cell phone? If you can avoid penalties for early cancellation, dump the cell phone and go for a pre-paid version (Tracfone, for instance.) Cell phones aren't a necessity, but good credit is!

 

Try to earn an extra 20-30 dollars a week any way you can. Almost anyone can do this, even in this economy. Cut lawns, shovel snow, dog sit, whatever. I know it doesn't seem like much, but if you can earn that, you'll keep up with your card payments and then some. You've got to pay these cards down faster than minimum payments. Put every dime of this extra income into paying off these cards.

 

College years don't last very long, but credit issues stay around for what seems like forever. Get a grip on where your money is going before you spend it. Discipline yourself. I know it seems hard, but if you don't do it for yourself and right now, you will regret it later.

 

The credit card companies know you're an easy mark. They go after the college crowd big time because they know you are undisciplined with credit, and then they've got you hooked. There's still time for you to wiggle off, so just do it...

Valued Contributor
cobra19
Posts: 1,424
Registered: ‎07-24-2007
0

Re: Getting too deep...almost at ends wit

I would agree with UU - get rid of the cell. It probably won't by itself, solve all your problems. But, it is an unnecessary monthly expense
New York Yankees - 2009 World Series Champions. 27... and counting.....
Established Contributor
Posts: 513
Registered: ‎04-03-2007
0

Re: Getting too deep...almost at ends wit


rwashington89 wrote:

 

(1) Well school came around and my mom insisted that I use my credit card to pay for my first semester and I did (it only came to about 1200).

 

(2) Thats where the trouble starts. I also needed a new  computer and books so I charged them also on a new card that I found that was open under my name. Now a year later I seem to be a bit in over my head.

 

(3) Currently I have about 3500 in total debt and it's getting harder and harder to pay the minimum payments anymore.

 

(4) A HUGE chunk of my money is going towards my car then I pay my cell phone and what's left(which isn't much) goes to my two cards.

 

(5) I have no clue what to do now and my minimum payments are getting higher and it's tough to meet them.


(1) What kind of school "came around"? 

Did you have money saved for school? I only ask because you seem to have decided to go to some kind of school at the last minute without planning for it.  Is it an accredited university? Is it a trade school? How long will you be going to school? Will you be able to skip the next semester to dig yourself out of debt? How are your grades? What are your chances in your chosen field for employment when you graduate?

 

I only ask these questions because many people get sold a bill of goods by trade schools that only seem to exist to sell dreams and suck money out of people who will never finish the courses. Frequently when finishing the courses there is no available employment. This is the main issue I would consider if it applies to you. It is important to be sure that your chosen school is worth the debt you are acquiring.

 

(2) How was an account opened (by somebody else) under your name?

Who issued the card? Can that card only be used for school supplies? By any chance did the school open the account for you so that it could sell you the books? Did you by any chance buy the computer from the school?

 

(3) How much of the $3,500 debt was incurred for school supplies?

If tuition was $1200, did you pay $2,300 for books and a computer in less than one semester? Did you charge more than one semester? Are the minimum payments constantly going up? Do you charge more than you are paying on the cards every month?    

 

(4) Where does your money come from?

Do you have a regular job? Is it full time or part time? Do you live at home? Do you pay rent? The solution to your problem is a carefully considered financial plan. 

 

(5) What you must do now is look at the big picture. 

(A) Did you carefully consider your options before enrolling in school? Why doesn't there seem to be any student loans available to you if the school is a college or university?

(B) Is taking a semester off to pay all of your debt and save for the next semester an option?

(C) Have you stopped using the credit cards so that the minimum payments will go down?


 

 

Established Contributor
Posts: 513
Registered: ‎04-03-2007
0

Re: Getting too deep...almost at ends wit


rwashington89 wrote:
(1) I did apply for one but I wasn't approved for it.

 

(2) I'm really looking for solutions fast.

 

(3) If I was able to get my one card with the school tuition on it payed off till i graduated then that would be perfect(one less card for me to worry about lol).


(1) What was the reason that you were denied a student loan?

 

(2) There are no fast solutions. There are only immediate decisions which you must make that will assure you that you can work your way out of the debt. You cannot borrow your way out of debt. You must establish your priorities, make a plan and then stick to the plan.

 

(3) How long before you graduate and how much debt is on the (tuition) card? 


Established Contributor
Pappy214
Posts: 794
Registered: ‎08-05-2008

Re: Getting too deep...almost at ends wit

How did you get denied for a student loan?  They give those away like perverts give away free candy.  My bro is living proof of that , he had 6 CO's and a repo on his credit and still got money for college from the feds. I honestly don't think they even checked a credit report before handing out the loans.

 

As far as your situation the only way to honestly take care of this fast is to work a second job, sell things on ebay or borrow from your parents. There is no magic fix.

 

 

____________________________________________________

"Evacuate, in our moment of triumph? I think you overestimate their chances."

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}