Hi everyone, I am a newbie in a financial hole looking for a friendly hand to help show me how climb out of this mess. I got laid off 2 yrs ago and have been struggling with my own business since then. Just cut up 6 maxed out credit cards totalling $60K. Now of course my late payments are raising interest rates and late fees, etc.
Should I seek the help of a consumer credit counseling group or will that hurt my credit even more? Should I just figure out how to pay them down myself which seems to be taking forever?
HELP – I am financially frustrated!!
What kind of business do you have? If you are struggling with it, could you have an option to work at your business only part-time and get a full time job with a steady income you can rely on more.
With 60K in credit card debt, you may have to get some outside help through a counseling service (thats a choice that is worth doing some research on before hand) Do you have a mortgage and a car payment each month too? Have you had any problems with collections agencies? All of these things need to be considered so people who have had experience can get back to you. At this point worrying about your credit score, is going to give you nightmares. Yes, there is some importance to it and having a good or great score feels wonderful and can give you added benefits to future credit lines, loans…etc…, but after messing up with debt, having a low score is just a consequence that can be repaired with only your time and effort. In my opinion, there is way too much public hype out there about THE CREDIT SCORE. Like it’s another tool for ultimate happiness. I had a low credit score and it took me nearly 6 years to raise it and now be at a decent level with it. I did it by always making my payments on time, paying much more than the minimums and paying off each credit card a little at a time (I had eight).
But now I have no debt and only two open credit lines on my credit report,(one major credit card and one store card) that I rarely ever use. I avoid using credit like the plague. I don’t even have a car payment anymore and drive a nearly ten year old Saturn, that’s only had a couple minor repair issues, that my husband was able to replace and repair for just the cost of partsand his time. He drives an older SUV, that we bought with cash. We like the freedom of only having one outstanding debt and that is our mortgage. of course at the time that we applied to finance our house, we could not do it with my name on it, because of my credit history. Now, with our next house, I will be able to be a legitimate owner on paper.
It’s not unheard of that people in a debt situation like yours have been able to work out of it all on their own. It’s matter of what you are willing to give up and live very frugally for a certain amount of time. There is a way to still be happy living very simplistically, meaning only buying what you absolutely need to survive and giving up the rest. I’m an expert at this and I did that for five years to pay off credit card debts. After that, I found out that my live was not any more complete when I finally had the ability to afford what I considered “luxuries”. They all seem frivolous. Now I save money like you would not believe and have a very good balance of when to spend and when not to. It was lesson worth every minute through my debt payment time.
Stick around here at DebtSteps, fill us in on some details, so others know how to help you with advice. Another word of caution, try to stay away from reading and dwelling into EVERYTHING about debt, because you don’t want to drive yourself crazy with way too many opinions.