Is It Possible To Get Out Of All This Debt? Looking For Perspective

[Anonymous]

I recently posted about my crazy situation. I owe about 17k on my CC's, including two CC's that have been closed and I owe an additional 13k in loans. I have been playing with a debt calculator and although it will take a while, it seems possible to pay this all off EVENTUALLY. But it does feel very daunting abd extremely overwhelming. I was wondering has anyone been in a similar situation and was able to get out of debt and get their credit to the low 700's with time and diligence.

I suppose I am looking for honesty, support, advice, and perspective ar this point. Thanks!

[medicgrrl]

There are a few threads floating around on this. I think they're in the General Credit forum. One suggestion is to call your credit card companies and see if they can lower your interest rate. Even if it's only a short time, it'll add up in savings.

[Anonymous]

Yes it is completely achievable to get out from under all the debt. There are several routes you can go to do this. While doing a bankruptcy would obviously relieve you of the debt, I'm going to assume you don't want to do one and focus on other ways you can do it.

1. For the closed CCs have you contacted the creditor and see if they'll settle for less or work out a payment arrangement? If they're closed as in charged off/collections they maybe be willing to do a settlement for less with a payment arrangement, possibly with a Pay for Delete PFD worked into it, wherein once the debt is settled they'll delete negative from your report.

2. For the open loan and CCs in addition to making your monthly minimum throw more money at them each month as you can. Remember there's typically no limit to the number of payments you can make on an account each month. One thing I like to do is if I see something I'm thinking about buying, but it isn't exactly a necessity or I'm not sure I want it, I ask myself "Do I want to get this or should I throw the money at my debt?" Sometimes I'll still get the item, but a lot of times I decided to throw it at my debt. I cut out quite a few $20 - $30 miscellaneous purchases doing this and instead made a payment in that amount to a CC or loan. The best thing to do is make that payment right away, sort of a "it's done and no looking back" attitude with it.

Number two really helped me tack my nearly maxed out CCs way quicker than debt calculators predicted. 

I hope this helps some!!

[Anonymous]

Wassup bro i was in debt consolidation not too long ago myself !

But, I came across this guide a couple years back that told me 5 easy steps I can't really remember too well but it DID fix my debt and CHANGE EVERYTHING

Debt Consolidation Guide

[Anonymous]

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@medicgrrl wrote:
There are a few threads floating around on this. I think they're in the General Credit forum. One suggestion is to call your credit card companies and see if they can lower your interest rate. Even if it's only a short time, it'll add up in savings.

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Thank you! That is a great idea. I wonder if them lowering my interest rate would be contingent on my score, because my score is awful, 520!

[medicgrrl]

I think if you call them and explain that you are trying to pay off the debt without worsening your situation, they'll work with you. Don't agree to a lower payment amount because I think that'll negatively affect your credit. Research hardship department or something along that line

[Anonymous]

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@Anonymous wrote:

Yes it is completely achievable to get out from under all the debt. There are several routes you can go to do this. While doing a bankruptcy would obviously relieve you of the debt, I'm going to assume you don't want to do one and focus on other ways you can do it.

1. For the closed CCs have you contacted the creditor and see if they'll settle for less or work out a payment arrangement? If they're closed as in charged off/collections they maybe be willing to do a settlement for less with a payment arrangement, possibly with a Pay for Delete PFD worked into it, wherein once the debt is settled they'll delete negative from your report.

2. For the open loan and CCs in addition to making your monthly minimum throw more money at them each month as you can. Remember there's typically no limit to the number of payments you can make on an account each month. One thing I like to do is if I see something I'm thinking about buying, but it isn't exactly a necessity or I'm not sure I want it, I ask myself "Do I want to get this or should I throw the money at my debt?" Sometimes I'll still get the item, but a lot of times I decided to throw it at my debt. I cut out quite a few $20 - $30 miscellaneous purchases doing this and instead made a payment in that amount to a CC or loan. The best thing to do is make that payment right away, sort of a "it's done and no looking back" attitude with it.

Number two really helped me tack my nearly maxed out CCs way quicker than debt calculators predicted. 

I hope this helps some!!

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This was extremely helpful. I wasnt thinking about the power of making smaller payments throughout the month after making the inital payment. Fortunately, the closed accounts have not been sent to collections yet. Thank you!

[Anonymous]

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@medicgrrl wrote:
I think if you call them and explain that you are trying to pay off the debt without worsening your situation, they'll work with you. Don't agree to a lower payment amount because I think that'll negatively affect your credit. Research hardship department or something along that line

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Thanks! Do you think I should do this with both the open and closed cards? 

[medicgrrl]

Yes. Are the closed accounts charged off?

[Anonymous]

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@medicgrrl wrote:
Yes. Are the closed accounts charged off?

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Nope, not yet.