topic Rebuilding but overwhelmed? Help! in Rebuilding Your Credit

Rebuilding but overwhelmed? Help!

Anonymous — Sun, 02 Oct 2016 19:02:34 GMT

Hello all!

I am new to this forum, and I am trying to learn everything I can to help myself get back in the right direction....

A little backstory, new mommy, went to school, became a medical assistant. Got into very bad accident with car, deer through windshield....made the bad decision to buy a brand new full sized pickup as to not have that happen again....long story short I have a big truck payment, a small loan, four credit cards with not super high balances, but high enough that they are not getting paid down, but my interest rates are horrible!!

I'm trying to find a good solution, because while all of my payments have been on time I am getting nowhere cause it's all interest.....at this point I owe more on the truck than it's worth, but I have NEVER had a repo and don't want to start...my current fico is 603, as I am drowning just making minimum payments....

Is there any hope for this mama? I have been a part of credit karma, but none of the information is ever correct!

I am beyond frustrated and don't know where to turn.

The small loan from my credit union which is an ok rate, it paid off some other debts from my credit which have not come back, the credit cards weren't in on that mix....bad choice by me....there's been a lot of that in my past but I'm trying to break it.....done good with payments just trying to get some light at the end of a very dark tunne!

current debt total truck included is 53,790.07

have had truck for just over a year (April 2015)

Thank you to anyone who can offer any guidance...

Thought about a debt consolidation loan, but 53k with a 603 Fico? I would get laughed out of anywhere and I'm ready to cry

Re: Rebuilding but overwhelmed? Help!

Anonymous — Sun, 02 Oct 2016 20:17:03 GMT

@Anonymous wrote:
Hello all!

I am new to this forum, and I am trying to learn everything I can to help myself get back in the right direction....
A little backstory, new mommy, went to school, became a medical assistant. Got into very bad accident with car, deer through windshield....made the bad decision to buy a brand new full sized pickup as to not have that happen again....long story short I have a big truck payment, a small loan, four credit cards with not super high balances, but high enough that they are not getting paid down, but my interest rates are horrible!!

I'm trying to find a good solution, because while all of my payments have been on time I am getting nowhere cause it's all interest.....at this point I owe more on the truck than it's worth, but I have NEVER had a repo and don't want to start...my current fico is 603, as I am drowning just making minimum payments....

Is there any hope for this mama? I have been a part of credit karma, but none of the information is ever correct!
I am beyond frustrated and don't know where to turn.
The small loan from my credit union which is an ok rate, it paid off some other debts from my credit which have not come back, the credit cards weren't in on that mix....bad choice by me....there's been a lot of that in my past but I'm trying to break it.....done good with payments just trying to get some light at the end of a very dark tunne!

current debt total truck included is 53,790.07
have had truck for just over a year (April 2015)

Thank you to anyone who can offer any guidance...
Thought about a debt consolidation loan, but 53k with a 603 Fico? I would get laughed out of anywhere and I'm ready to cry

Abframe76, welcome!

There are some very knowledgeable people on this site, so I will leave the suggestions to them regarding your situation. I just wanted to welcome you to the community...

You may want to provide some more details regarding your situation - what's your income? Maybe also list your debts individually and monthly payments for each.

Re: Rebuilding but overwhelmed? Help!

Anonymous — Sun, 02 Oct 2016 20:56:21 GMT

Thanks LOTR!

This has all been very frustrating and overwhelming, but from some of what I've been reading there are some amazing people on this site, and I'm looking forward to learning more and getting my life back on track!

I will admit, I have nooooo idea what some of the abbreviations mean that I've seen on here but I'm hoping that I don't sound too dumb lol

situation on is kind of rough, my husband and I both work, both long hours so second job with kids is impossible...but here's a basic breakdown..

combined income is 4558 after insurance and taxes come out.

740 a month goes to daycare and 1103 to the mortgage....right off the top.

we don't have a lot of extras, just internet cause we use streaming for everything. Cell phone at a minimum.

we don't eat out much maybe once a month....toddler = nuff said

debts for the amount I came up with....

Truck-Chrysler capital-40,303.74 (payments 830 mo)

Capital one-811.24-bal-limit-1,000

capital one-662.10-bal-limit-750

barclaycard-1427.80-bal-limit-1500

target-253-bal-limit-300

regional finance-1029-old loan of husbands...98 monthly until paid, 11 payments left.

state employees credit union-7202.19-loan-177.00 monthly 10.75% (they have a set rate here)

old accounts that I've tried disputing because two of them aren't mine at all, but they are still there! Just want things off there!

Tek-Collect-812 medical bill from out of state, I live in NC!! Have my whole life!

William and Fudge-804-southern New Hampshire university-never been there!

Credit collection-255-progressive insurance, old auto insurance that we switched companies and I didn't realize we owed until I get this letter as we had moved...just haven't been able to pay them yet....

The credit cards have been getting minimum payments just so they aren't late cause that would just make everything way worse!

We we filed Chapter 7 bankruptcy in 2007 (discharged but still on credit-discharge was 12/2007) when our business closed, we have since done what we could to get by, played a lot of catch up!!

We we own our home, but my husband is the only one on the loan, no equity yet, I am on deed just not loan....usda loan, bought by Wells Fargo....3.875% fixed rate.

Im not sure what else to include as far as information that would be helpful......no repos at all, I have an almost perfect auto loan payment history, I got one 30 day late in 13 years, and of course it was with this truck.....grrrrrrrr I was late once.....truck payment comes in a little late sometimes but never 30 days late!

Re: Rebuilding but overwhelmed? Help!

Anonymous — Sun, 02 Oct 2016 20:59:40 GMT

Ok crap, my estimate was off somewhere....

total debt trying to consolidate: 53,560.07

sorry bout that! :-)

Re: Rebuilding but overwhelmed? Help!

StartingOver10 — Sun, 02 Oct 2016 21:27:47 GMT

Welcome to MyFICO Abframe76!

Most of us found this website just the way you did...hitting the wall and deciding to research alternatives. There are a ton of us here that have been through your heavy debt situation and learned a great deal just by reading the posts here at MyFICO.

I have a question for you - you said your income is $4558 per month combined after taxes and insurance comes out of your check. Do you get a big refund every year? If so, consider having less taken out of your check so you have more coming in monthly. Example, if your normal federal tax refund is $5000/year between you both, that is an extra $416 per month you could get now, rather than getting a lump sum each year. Talk to your HR department to see what you need to do to have the right amount taken out of your check rather than too much.

Another source of "income" is to go through your budget again to make sure those $5 to $10 items are gone. You know - all those little things that add up to a few hundred per month before you know it. Get rid of those items.

Another way to add to your income is to sell anything you have around the house you don't need - craigslist or any other way you are comfortable.

Then do the snowball method on your accounts. Google it - there are all kinds of ways to snowball. I like paying off the small debt first and then going to the next smallest and adding the paid off debt to the next debt payoff. Others like to start with the highest interest rate.

The first thing to do is get the maxed out credit cards paid down so they are under 50% and then under 30%. Once you start paying down the debt your credit score ought to rebound enough to refi your truck. Since the truck is new(er) you should be able to refi into a much better rate once your score hits 680 or so, that will be a big help.

EDIT:

Looking at your current debt:

Truck-Chrysler capital-40,303.74 (payments 830 mo)

Capital one-811.24-bal-limit-1,000 <=then pay this one off (3)

capital one-662.10-bal-limit-750 <=then pay this one off with accelerated payments (2)

barclaycard-1427.80-bal-limit-1500 <= then this one (4)

target-253-bal-limit-300 <= personally I would start with this one, payoff and sockdrawer until you get your debt where you want it to be (1)

regional finance-1029-old loan of husbands...98 monthly until paid, 11 payments left.

state employees credit union-7202.19-loan-177.00 monthly 10.75% (they have a set rate here)

By the time you have paid those 4, it really shouldn't take long. Keep those cards active, not closed and your score should be higher to refi your truck with another CU at a much better rate. JMO

Re: Rebuilding but overwhelmed? Help!

Anonymous — Sun, 02 Oct 2016 21:25:57 GMT

It's good that you are atleast making the minimum payments!

Have you tried to get a low intro rate 0% card and do a balance transfer from a card you currently have that has a high interest rate? This is one way to free up some money that you can then put towards your lowest balance card. You can then use the snowball method to get things paid off/down much quicker.

Re: Rebuilding but overwhelmed? Help!

Anonymous — Sun, 02 Oct 2016 21:24:46 GMT

You can find a list of abbreviations and their meanings here:
http://ficoforums.myfico.com/t5/User-Guidelines-General/Common-Abbreviations/m-p/88458#M23

Re: Rebuilding but overwhelmed? Help!

Anonymous — Sun, 02 Oct 2016 21:30:16 GMT

@StartingOver10 wrote:
Welcome to MyFICO Abframe76!

Most of us found this website just the way you did...hitting the wall and deciding to research alternatives. There are a ton of us here that have been through your heavy debt situation and learned a great deal just by reading the posts here at MyFICO.

I have a question for you - you said your income is $4558 per month combined after taxes and insurance comes out of your check. Do you get a big refund every year? If so, consider having less taken out of your check so you have more coming in monthly. Example, if your normal federal tax refund is $5000/year between you both, that is an extra $416 per month you could get now, rather than getting a lump sum each year. Talk to your HR department to see what you need to do to have the right amount taken out of your check rather than too much.

Another source of "income" is to go through your budget again to make sure those $5 to $10 items are gone. You know - all those little things that add up to a few hundred per month before you know it. Get rid of those items.

Another way to add to your income is to sell anything you have around the house you don't need - craigslist or any other way you are comfortable.

Then do the snowball method on your accounts. Google it - there are all kinds of ways to snowball. I like paying off the small debt first and then going to the next smallest and adding the paid off debt to the next debt payoff. Others like to start with the highest interest rate.
The first thing to do is get the maxed out credit cards paid down so they are under 50% and then under 30%. Once you start paying down the debt your credit score ought to rebound enough to refi your truck. Since the truck is new(er) you should be able to refi into a much better rate once your score hits 680 or so, that will be a big help.

EDIT:
Looking at your current debt:

Truck-Chrysler capital-40,303.74 (payments 830 mo)

Capital one-811.24-bal-limit-1,000 <=then pay this one off (3)

capital one-662.10-bal-limit-750 <=then pay this one off with accelerated payments (2)

barclaycard-1427.80-bal-limit-1500 <= then this one (4)

target-253-bal-limit-300 <= personally I would start with this one, payoff and sockdrawer until you get your debt where you want it to be (1)

regional finance-1029-old loan of husbands...98 monthly until paid, 11 payments left.

state employees credit union-7202.19-loan-177.00 monthly 10.75% (they have a set rate here)

By the time you have paid those 4, it really shouldn't take long. Keep those cards active, not closed and your score should be higher to refi your truck with another CU at a much better rate. JMO

+100

Awesome suggestions! I did the snowball method for the student loan debt. Works wonders!

Re: Rebuilding but overwhelmed? Help!

sarge12 — Sun, 02 Oct 2016 22:16:26 GMT

@Anonymous wrote:
@StartingOver10 wrote:
Welcome to MyFICO Abframe76!

Most of us found this website just the way you did...hitting the wall and deciding to research alternatives. There are a ton of us here that have been through your heavy debt situation and learned a great deal just by reading the posts here at MyFICO.

I have a question for you - you said your income is $4558 per month combined after taxes and insurance comes out of your check. Do you get a big refund every year? If so, consider having less taken out of your check so you have more coming in monthly. Example, if your normal federal tax refund is $5000/year between you both, that is an extra $416 per month you could get now, rather than getting a lump sum each year. Talk to your HR department to see what you need to do to have the right amount taken out of your check rather than too much.

Another source of "income" is to go through your budget again to make sure those $5 to $10 items are gone. You know - all those little things that add up to a few hundred per month before you know it. Get rid of those items.

Another way to add to your income is to sell anything you have around the house you don't need - craigslist or any other way you are comfortable.

Then do the snowball method on your accounts. Google it - there are all kinds of ways to snowball. I like paying off the small debt first and then going to the next smallest and adding the paid off debt to the next debt payoff. Others like to start with the highest interest rate.
The first thing to do is get the maxed out credit cards paid down so they are under 50% and then under 30%. Once you start paying down the debt your credit score ought to rebound enough to refi your truck. Since the truck is new(er) you should be able to refi into a much better rate once your score hits 680 or so, that will be a big help.

EDIT:
Looking at your current debt:

Truck-Chrysler capital-40,303.74 (payments 830 mo)

Capital one-811.24-bal-limit-1,000 <=then pay this one off (3)

capital one-662.10-bal-limit-750 <=then pay this one off with accelerated payments (2)

barclaycard-1427.80-bal-limit-1500 <= then this one (4)

target-253-bal-limit-300 <= personally I would start with this one, payoff and sockdrawer until you get your debt where you want it to be (1)

regional finance-1029-old loan of husbands...98 monthly until paid, 11 payments left.

state employees credit union-7202.19-loan-177.00 monthly 10.75% (they have a set rate here)

By the time you have paid those 4, it really shouldn't take long. Keep those cards active, not closed and your score should be higher to refi your truck with another CU at a much better rate. JMO
+100
Awesome suggestions! I did the snowball method for the student loan debt. Works wonders!

That regional finance is probably at a ridiculous interest rate and should be a high priority

Re: Rebuilding but overwhelmed? Help!

Anonymous — Sun, 02 Oct 2016 22:41:01 GMT

Wow those are awesome suggestions!!!

The way you guys explained this makes it seem so much simpler! I have tons of baby stuff that will never be used I bet I could sell it all, I never even thought about that!

I have been so overwhelmed looking at this huge picture I never even thought about that....

we we have definitely nickled and dimed ourselves to the max, we have cut our grocery budget down to ramen, pasta and very simple meals, most even without meat just to try and pay stuff off....coupons are awesome lol

we do get a decent refund at the end of the year, and we have made it so that we get to do something needed like when the dishwasher broke, or like hopefully this year, we will be able to replace the rotten wood on the house, but once we get out of this mound I imagine saving for that stuff will be much easier!

My my biggest issue with doing a refi on the truck is that I owe way more than the value of it, so getting it refinanced is going to be impossible, or am I wrong there?

currently I owe 40k and I think it's blue book was only 28-29k?

its a 2015 ram 1500 crew cab, hemi, two wheel drive......22,000 miles on it......

i will ill definitely look into the snowball methods, when I do that, do I just pay the one or mins on all, and try to throw extra to the one?

sorry I am still trying to learn a lot.....you would think being 40 years old I would have a better grip before now lol

thanks you guys!! Y'all rock :-)

Re: Rebuilding but overwhelmed? Help!

Anonymous — Sun, 02 Oct 2016 22:42:42 GMT

Sarge, you're right! That regional is at 30% I believe! It was an unsolicited check they sent him, and he cashed it! I was floored!!

Re: Rebuilding but overwhelmed? Help!

Anonymous — Sun, 02 Oct 2016 22:47:52 GMT

I know this will sound dumb, but I have no idea how to do balance transfer.....does it need to be the same company card? I'm not even certain I'd qualify....but I love all the suggestions!

Re: Rebuilding but overwhelmed? Help!

StartingOver10 — Sun, 02 Oct 2016 23:02:14 GMT

Sarge, you are right. That regional finance should be paid off ASAP. I admit I made certain assumptions without the information and that's why I started with the lowest payment first. 30% is too high to keep paying for another 11 payments. If the OP has the funds to accelerate that payment, then yes, do that first!

Re: Rebuilding but overwhelmed? Help!

Anonymous — Sun, 02 Oct 2016 23:07:20 GMT

Yes regional is awful, I could kick him for cashing that check, thank goodness there is no pre payment penalty! So I just send extra to them and do minimums to the others is that correct?

Re: Rebuilding but overwhelmed? Help!

Anonymous — Mon, 03 Oct 2016 00:17:30 GMT

@Anonymous wrote:
I know this will sound dumb, but I have no idea how to do balance transfer.....does it need to be the same company card? I'm not even certain I'd qualify....but I love all the suggestions!

I've never done a balance transfer, but I believe it doesn't have to be the same company card. My ex got a lot of 0% intro card offers which was use to keep our balances from growing. The intro rate varies - usually 6 months I think, but in that six months - the balance is not growing. Just pay attention to what the rate hike will be after the intro period because you want that card down as much as possible in that six months or whatever the timeframe is. You want to make the most head-way on your debt during that 0% introductory period.

I'm hoping those who have done it will weigh in on this....

Re: Rebuilding but overwhelmed? Help!

sarge12 — Mon, 03 Oct 2016 00:29:35 GMT

@StartingOver10 wrote:
Sarge, you are right. That regional finance should be paid off ASAP. I admit I made certain assumptions without the information and that's why I started with the lowest payment first. 30% is too high to keep paying for another 11 payments. If the OP has the funds to accelerate that payment, then yes, do that first!

I just noticed it was a finance company, and that is as close to a loan shark as you can get. Some even have over 100 percent interest rate. Only thing higher is payday and title loans.

Re: Rebuilding but overwhelmed? Help!

Anonymous — Mon, 03 Oct 2016 00:35:14 GMT

@sarge12 wrote:
@StartingOver10 wrote:
Sarge, you are right. That regional finance should be paid off ASAP. I admit I made certain assumptions without the information and that's why I started with the lowest payment first. 30% is too high to keep paying for another 11 payments. If the OP has the funds to accelerate that payment, then yes, do that first!
I just noticed it was a finance company, and that is as close to a loan shark as you can get. Some even have over 100 percent interest rate. Only thing higher is payday and title loans.

I heard that some of the payday loans when it's all said and done can end up being 300 - 400% as they hide it all in fees and automatic debits directly from your account. There are so many consumer predators out there just waiting to take advantage of someone's desperate situation. So sad.

Re: Rebuilding but overwhelmed? Help!

sarge12 — Mon, 03 Oct 2016 00:36:43 GMT

@Anonymous wrote:
Yes regional is awful, I could kick him for cashing that check, thank goodness there is no pre payment penalty! So I just send extra to them and do minimums to the others is that correct?

If you want to get your score higher, you probably want to pay a little more than minimum on everything. Even if it is only a couple of dollars, it looks better if it does not report as paying minimum...or so I have been told.

Re: Rebuilding but overwhelmed? Help!

sarge12 — Mon, 03 Oct 2016 00:39:50 GMT

@Anonymous wrote:
I know this will sound dumb, but I have no idea how to do balance transfer.....does it need to be the same company card? I'm not even certain I'd qualify....but I love all the suggestions!

0% offers on balance transfers usually come with a few checks to write to other creditors for balance transfer!

Re: Rebuilding but overwhelmed? Help!

sarge12 — Mon, 03 Oct 2016 00:42:24 GMT

@Anonymous wrote:
@Anonymous wrote:
I know this will sound dumb, but I have no idea how to do balance transfer.....does it need to be the same company card? I'm not even certain I'd qualify....but I love all the suggestions!
I've never done a balance transfer, but I believe it doesn't have to be the same company card. My ex got a lot of 0% intro card offers which was use to keep our balances from growing. The intro rate varies - usually 6 months I think, but in that six months - the balance is not growing. Just pay attention to what the rate hike will be after the intro period because you want that card down as much as possible in that six months or whatever the timeframe is. You want to make the most head-way on your debt during that 0% introductory period.

I'm hoping those who have done it will weigh in on this....

Most balance transfers can not be used for the same company...must be used to transfer balances from other companies.