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Need Advice!

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Anonymous
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Need Advice!

Hello, I have been reading these forums for only a week and I noticed that people have really good advice. I was hoping that someone will be able to offer sound advice.   I have managed to get myself in approx $24 of cc debt.  I am looking for the best option to help me get out of debt.  Here is my situation:
I have approx 13cards w/ a mix of store and other cards: approx 10 have a balance.  I am almost at the credit limit on all of them.  I have been making my payments on time and have a TU score of 662.  My debt to income ratio is not good ( I make approx 47,000).  I also have a student loan (115/mo), a mortgage payment  600/mo(but when we refinaced the mortgage is in my boyfriends name), a car payment (318/mo) and 2 personal loans (273 & 156/mo). I usually pay 800/mos in cc bills.  I recently got a new job and am making more money, so I do not need to use the cc's to buy groceies or gas.  I have cut everything out of my budget that is not necessary, however, I am having difficulties making the min. payments as most of the cards are between 25-30% APR.  I have used my tax rebate, my stimulus check, my savings and my bonus to cover the min due.  I owe more than I bring in home in a month.
I do have a part time job, but not making any regular income and have not been able to find another that fits with my work schedule.
I have contacted some of the places that others have used.  When I contacted a DMP I was told that they cannot help me as I owe more than I make.  I also consulted with a Debt settlement company and they said that in 29 mos. with a payment of 430 a mos, which is doable (they take 14% for the 1st 11 mos. only) i will be debt free. I control the account and send the payments.  And since I travel for my job, I will be able to keep a card open to use for hotels, cars, and flights.  They told me since I have other loans, my credit score will not be affected much.   IS this true?  Has anyone used a debt settlemnemt company?  What were your results? 
Does anyone have any other suggestions on how to get out of debt?  I need to make a decision ASAP as I will not be able to make all of my payments in June.  Any help is appreciated. 

Thanks in advance. 


Message Edited by pensfan on 05-28-2008 05:19 PM
Message 1 of 3
2 REPLIES 2
Anonymous
Not applicable

Re: Need Advice!



pensfan wrote:
Hello, I have been reading these forums for only a week and I noticed that people have really good advice. I was hoping that someone will be able to offer sound advice.   I have managed to get myself in approx $24 of cc debt.  I am looking for the best option to help me get out of debt.  Here is my situation:
I have approx 13cards w/ a mix of store and other cards: approx 10 have a balance.  I am almost at the credit limit on all of them.  I have been making my payments on time and have a TU score of 662.  My debt to income ratio is not good ( I make approx 47,000).  I also have a student loan (115/mo), a mortgage payment  600/mo(but when we refinaced the mortgage is in my boyfriends name), a car payment (318/mo) and 2 personal loans (273 & 156/mo). I usually pay 800/mos in cc bills.  I recently got a new job and am making more money, so I do not need to use the cc's to buy groceies or gas.  I have cut everything out of my budget that is not necessary, however, I am having difficulties making the min. payments as most of the cards are between 25-30% APR.  I have used my tax rebate, my stimulus check, my savings and my bonus to cover the min due.  I owe more than I bring in home in a month.
I do have a part time job, but not making any regular income and have not been able to find another that fits with my work schedule.
I have contacted some of the places that others have used.  When I contacted a DMP I was told that they cannot help me as I owe more than I make.  I also consulted with a Debt settlement company and they said that in 29 mos. with a payment of 430 a mos, which is doable (they take 14% for the 1st 11 mos. only) i will be debt free. I control the account and send the payments.  And since I travel for my job, I will be able to keep a card open to use for hotels, cars, and flights.  They told me since I have other loans, my credit score will not be affected much.   IS this true?  Has anyone used a debt settlemnemt company?  What were your results? 
Does anyone have any other suggestions on how to get out of debt?  I need to make a decision ASAP as I will not be able to make all of my payments in June.  Any help is appreciated. 

Thanks in advance. 


Message Edited by pensfan on 05-28-2008 05:19 PM

You can do a search for debt settlement companies using the search box above. I have no experience with any of these companies.
 
Call your creditors on your CC, don't speak with the CSR that answers the phone, ask for an account specialist or something like that. Try to negotiate down the interest rate, repayment plan, etc.
 
Explain that you don't want to default,but need to work something out.
 
What is the balance on the personal loans, will they be paid off soon?
 
The only other suggestion I have is talking to your bank or CU about consolidating the CCs and personal loans.
Message 2 of 3
Anonymous
Not applicable

Re: Need Advice!

In addition to sidewinder's advice.. Have you considered requesting an economic hardship forbearance so you can hold off on student loan payments and apply that money to other debts? It may be more to pay later, but you could pay down your cc faster.
Message 3 of 3
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