Should I file or get a 12k limit credit card?

[StartingOver10]

It is hard to tell as we have no details on your actual debt, but I agree with the posters above.

You started out saying you have $11k in debt and then the last amount is $34k.  Does that include student loan debt?  Can you provide a list of your debt type, limit, balance?

Consolidating debt is not always the solution.  What is your actual gross income?  These factors make a difference.

[Anonymous]

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@Anonymous wrote:
The loan payments are over 900 a month. My car payment is over 500 and I am upside down 11k on that. If I don't pay my loans, wouldn't they file judgements against me? Are judgements and garnishments just as harsh as a bankruptcy? If my check gets garnished I won't be able to afford anything.

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If I were in your shoes, I would start cutting back on everything possible. A $500 per month car payment is a lot. Have you considered selling it and getting a much cheaper car until your debts are paid off? What is your rent/mortgage situation? Do you have roommates to split the cost? Do you pay for cable? If so, time to dump it. Do you eat out? If so, stop. Do you have anything you can sell to raise cash (furniture, never worn clothing, etc.)? I would get a financial advisor ASAP to create a sound proof budget and path to get you through this. Although $30K annually is not a lot to live on, you should be able to create a plan to rid of this debt with some hard work and dedication. Best of luck to you. 

[Anonymous]

From my previous post

Here is a breakdown
Citi diamond (now closed) 200 CL opened from 2/17-4/17. bal 100
CareCredit opened 6/16. 1k CL 30days 2/17 60 days 3/17. bal 750
Walmart opened 7/16 600CL never over 30days late , but 1 returned payment (they closed it after that one returned payment) bal 646
BofA opened 7/16 never late 500CL bal 420
Amazon 7/16 30 days late 4/17 700CL (they closed this one too, do idea why. I guess since it’s the same bank as walmart). bal 660
Target 7/16 never late 300CL (I think its closed too because my balance is 250, but they are saying I have 0 avail).
VS 1/16 Never late 850CL bal 688
Kays 12/15 30 days late 3/17 (closed after 1 late payment) 550CL bal 120
Cap1 QS 30 days 3/17. 2150CL (closed after 1 missed payment and 1 returned payment bc I switched banks and forgot to change my bank info. I had automatic payments). bal 2171
Cap1 Platinum 500CL opened 10/12 90 days late 1/15-3/15. 4/17. (4 missed payments). bal 507
Credit One opened 4/14 30 days late 2/15, 10/14, 4/17. (3 missed payments). 700CL bal 700

For my loans, I’ve only been late on 2, and that’s with the Credit Union. 60 days late 3-4/17.
For my auto loan with NMAC, I’ve been late 8 times since 4/14. 7 30 days, 1 60days.

Total Credit card debt 6,334,20
Loans: 11,034.73
Collections (mixture of old debt and medical): 14,304.46 (only 5997 is reporting on my credit report).
Unpaid Payday loans: 3,396.85.

Total debt not including my car 34,944.19.

My car is worth 9k, but I owe 19k, and my student loans are in deferment.

[Anonymous]

The 11k worth of loans with 900 a month in payments is my biggest issue. I cannot afford it. That's more than my rent. My actually monthly expenses excluding credit cards and loans is 1950. Add in credit cards I'm at like 2400. I wish there was a way to just consolidate my loans. If I default on them I'm afraid they will file judgement against me and garnish my check.

[Anonymous]

I did look into a nonprofit and the lady looked at all my expenses and income and couldn't really help me. She said they could but some loan companies don't do settlements, and that She was hesitate that I would be able to afford the payments.

[Anonymous]

Seriously, go speak to an accredited Financial Planner (make sure they're a CFP) before you make any decisions. They will be the best to advise how to navigate through your situation. It will cost you some, but will most likely end up saving you A LOT of money in the long term. Take a look at Learnvest - www.learnvest.com -. You pay a one-time $299 fee (there's currently a $75 credit to take advantage of, so really $224) plus a $19.95 monthly fee for a Financial Planner to build you a budget and guide you through your options. Although I know you probably don't want to spend that much upfront, but this is one of the cheapest financial plans you can find. I've used them and they've been great. You need an expert to advise you on the best way out of this. 

[stellar]

I don't think you need to pay a financial planner.  All the info is on the internet.  

Basically write down where every dollar is currently going.  Cut out anything that isn't necessary right now.  Then pick up some side work like Uber driving to bring in more income.  Pay off your highest interest debts first.  

[Anonymous]

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@Anonymous wrote:
From my previous post

Here is a breakdown
Citi diamond (now closed) 200 CL opened from 2/17-4/17. bal 100
CareCredit opened 6/16. 1k CL 30days 2/17 60 days 3/17. bal 750
Walmart opened 7/16 600CL never over 30days late , but 1 returned payment (they closed it after that one returned payment) bal 646
BofA opened 7/16 never late 500CL bal 420
Amazon 7/16 30 days late 4/17 700CL (they closed this one too, do idea why. I guess since it’s the same bank as walmart). bal 660
Target 7/16 never late 300CL (I think its closed too because my balance is 250, but they are saying I have 0 avail).
VS 1/16 Never late 850CL bal 688
Kays 12/15 30 days late 3/17 (closed after 1 late payment) 550CL bal 120
Cap1 QS 30 days 3/17. 2150CL (closed after 1 missed payment and 1 returned payment bc I switched banks and forgot to change my bank info. I had automatic payments). bal 2171
Cap1 Platinum 500CL opened 10/12 90 days late 1/15-3/15. 4/17. (4 missed payments). bal 507
Credit One opened 4/14 30 days late 2/15, 10/14, 4/17. (3 missed payments). 700CL bal 700

For my loans, I’ve only been late on 2, and that’s with the Credit Union. 60 days late 3-4/17.
For my auto loan with NMAC, I’ve been late 8 times since 4/14. 7 30 days, 1 60days.

Total Credit card debt 6,334,20
Loans: 11,034.73
Collections (mixture of old debt and medical): 14,304.46 (only 5997 is reporting on my credit report).
Unpaid Payday loans: 3,396.85.

Total debt not including my car 34,944.19.

My car is worth 9k, but I owe 19k, and my student loans are in deferment.

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Ok, You have done the first step...you know you need to fix this (hardest thing is admitting you have trouble)

Call every single creditor you have (including closed accounts) and BE HONEST with them and ask to work out a "Hardship Repayment Plan", they will more then likely require you to close the account. Don't be afraid to also ask for a "Interest rate reduction" or freeze (that way the monies you pay will actually affect your balance pay-down). Be realistic with them on what you can afford 15/30 bucks a month each.  The companies will report to CB that accounts are closed, but they will also report you in the "Green" for satisfactory payments as you make them (they do not report you are in any kind of hardship program)

If they do this for you..WHATEVER YOU DO...DO NOT BOUNCE PAYMENT OR BE LATE!!!!!! Because if you do, you have voided the agreement and they will come after you with the big guns.

Stop spending money on everything except paying down that debt...such that $10 coffee and biscuit could be sent to walmart CC ect...

Get a second job or tutor if poss and use that to pay towards debt also

Sell anything you can, that you at this moment do not need to survive

Doing these things can possibly get you back on the good within 12-24 months...It's a lot better then a 7 year (or more) hit for BK

I have no idea about SLs (never having used them) but maybe one of the folks hear can help on that end...I have heard things about deferments but again no clue how to do it.

Good Luck

**edited to say "oops" missed the part about your SLs in deferment

[StartingOver10]

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@Anonymous wrote:
From my previous post

Here is a breakdown
Citi diamond (now closed) 200 CL opened from 2/17-4/17. bal 100
CareCredit opened 6/16. 1k CL 30days 2/17 60 days 3/17. bal 750
Walmart opened 7/16 600CL never over 30days late , but 1 returned payment (they closed it after that one returned payment) bal 646
BofA opened 7/16 never late 500CL bal 420
Amazon 7/16 30 days late 4/17 700CL (they closed this one too, do idea why. I guess since it’s the same bank as walmart). bal 660
Target 7/16 never late 300CL (I think its closed too because my balance is 250, but they are saying I have 0 avail).
VS 1/16 Never late 850CL bal 688
Kays 12/15 30 days late 3/17 (closed after 1 late payment) 550CL bal 120
Cap1 QS 30 days 3/17. 2150CL (closed after 1 missed payment and 1 returned payment bc I switched banks and forgot to change my bank info. I had automatic payments). bal 2171
Cap1 Platinum 500CL opened 10/12 90 days late 1/15-3/15. 4/17. (4 missed payments). bal 507
Credit One opened 4/14 30 days late 2/15, 10/14, 4/17. (3 missed payments). 700CL bal 700

For my loans, I’ve only been late on 2, and that’s with the Credit Union. 60 days late 3-4/17.
For my auto loan with NMAC, I’ve been late 8 times since 4/14. 7 30 days, 1 60days.

Total Credit card debt 6,334,20
Loans: 11,034.73
Collections (mixture of old debt and medical): 14,304.46 (only 5997 is reporting on my credit report).
Unpaid Payday loans: 3,396.85.

Total debt not including my car 34,944.19.

My car is worth 9k, but I owe 19k, and my student loans are in deferment.

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Starting with your vehicle, how do you know your vehicle is worth $9k?  I ask that because many times someone "finds out" that the value is X because a dealership told them the value for a trade.  Naturally, trading is the worst thing you can do because dealerships low ball the value.  Right now just hold on to your vehicle with an eye toward a future refinance when you get your credit straightened up.

We have a student loan section here where you can see what to do with your student loans. How much do you owe?  

The credit card balances aren't bad at all but it looks like you don't have a process/procedure for paying your bills or keeping track of your funds at all. 

You will need to set up a budget (try YNAB) and get a "check register".  It is the easiest way to keep track of debits and credits out of your bank account. Once you do that, you won't bounce payments because you will know exactly how much is in your account. Takes a couple of minutes (seconds really) whenever you debit out of your bank account.  Research it. The banks online account service can't possibly know that you have $X scheduled as a payment for ABC creditor two weeks from now.  It can only show past activity and not future payments or delayed payments. It sounds old fashioned, you but you have to get control over your cash flow and only you can do it. Stopping the fees associated with NSF payments and the fall out from those fees will go a long way to removing the pressure you feel.

How long have you had those loans?  Do you know the terms (interest rate, payments due, maturity dates/payoff dates)?  Are you paying interest only or are you paying principal and interest?  Are these the loans that are costing you $900/month? 

Take a few minutes and post your debt (like you have) + the monthly min payment due + the interest rate.  Maybe we can help you with a plan.

[Anonymous]

Do you have a 401(k)? If so, getting a loan from yourself my be an option for some of the unsecured debt. Or, if you decide to file bankruptcy, you may be able to redeem your vehicle, effectively eliminating the $10k your car is upside down.

I also question if paying a CFP is going to help all that much.

Have you looked into credit counseling? I wasn't sure if you did, or if you spoke with a debt settlement company (which often are bad).

Finally, regarding a debt consolidation loan: I'd be concerned that you would either 1) not get approved; or 2) get a high interest rate, like 18%. If some of your creditors don't participate in credit counseling, getting a debt consolidation loan with someone who does participate may enable you to consolidate the debt, then negotiate a lower rate via credit counseling at a later  point in time, though.