PostHeaderIcon I need help figuring out debt?


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I have debt, I’m ashamed to admit it. I’m in way over my head and most of it is credit cards. I don’t know how to get myself out of it. I need help form another source. I wanted to work with a debt consolidation company but I’m wary that I’ll get ripped off. I asked the bank to help with a loan but I have too much unsecured debt so they won’t approve me. I own a house but I can’t take out a home equity because I had to use that to buy my ex husband out of the house. I just want to pay off my debt but it’s getting harder with the credit card intrest rates I don’t know what to do.
The credit card companies do not want to do anything to help you out. I just talked to one of mine (HSBC) who is charging me 31% interest and basically they were like, F*** you sorry. It was like trying to push a brick wall. I told them that I really needed help I even talked to a supervisor. I said can’t afford my payments with that kind of interest rate and I’d have to file for bankruptcy and they said well if that’s what you have to do. I said wouldn’t you rather work with me and get paid or me filing for bankruptcy and you not getting any money and they were like oh well. It doesn’t make sense. Credit card companies will not work with you I have tried with Chase, Citi and now HSBC they simply don’t care. Also I have good credit I’ve made a few late payments because I’m struggling financially right now but my credit is good–I was just told that by my bank a week and a half ago. Good credit gets me 31% interest at HSBC and 24% interest at Chase. What’s up with that?

6 Responses to “I need help figuring out debt?”

  • Livin'SD says:

    Call the credit card companies and ask if they will lower your interest rates. You’d be surprised what they will do for you if you just ask. For example, if you ever make a late payment, you can call and ask them to remove the associated fee (they will probably only do this for you once).
    Cut the cards up so you won’t be tempted to use them.
    Wishing you the best with your quest.

  • tagej says:

    Almost all “debt consolidation” companies are a ripoff. They don’t do anything for you that you can’t do yourself — and for free.

    Basically, you can call your CC companies and explain to them that you are in a tough situation and would like to work out a payment plan. Most of them will do that — it’s way better for them to work out a plan (reduced interest etc) rather than seeing you default on your payment. (CC debt is not secured).

    The other option, depending on how far over your head you are, is to file for bankruptcy, that can be a good option depending on your situation.

    Also, most states have agencies that will help people with advice on figuring out their debt situation for free. Do some googling for your state, I’d bet you there’s such an agency where you are. They can get you on the right track. Good luck!

  • nickers says:

    don’t go with the debt consolidation companies, that will really ruin your future credit. Which leaves the options of cutting way back on your everyday expenses or getting a part-time job , not good sounding i know but the best way out !!

  • Jeff T says:

    I know what you are dealing with im in the same boat. Heres what you need to do though:

    First start carrying a piece of paper and tracking all your expenses for the next few weeks. Write down everything even if it’s a .50 or $1 item write it down.

    Next, sit down with your paycheck, bills and that list. Do a complete budget figuring ALL your expenses and don’t cheat on it. Figure paying the minium on all your bills and see how much extra money you have left each month if any.

    Now, lets look at wh at you can cut down on or get rid of all togeather. Some examples are making your morning coffee at home and takin with you, take lunchs to work, take drinks with you, cut the cell phone and home phone or get rid of one of them, shop around for car insurance, if you have a car payment sell it and get something for cash, cut the cable bill down or get rid of it, lose or cut back the internet, eat alot of soups, vegatables and pastas, cook a few days worth of meals at once, cut the heat back etc.. There are all kinds of ways to cut back on your budget.

    Now, you’ll want to pay the minium on all your bills until you get a 1000 emergancy fund saved. This is for emergancies not to go out to eat with. The emergancy fund is for when those unexpected things happen, you won’t have to borrow from a credit card to take care of them. Once you do that then take your lowest debt and start paying any extra to it while making the minium payment on everything else. Once the first debt is paid, take the amount you where paying to it and add it to your next lowest debt. ITs the snowball effect and it works great.

    Other things to do is looking at getting more hours at work or a second job. It might not be fun but if you wanna get out of debt its going to take ALOT of work and won’t be easy but will be worth it. If you have a spare room rent it out for $350-$550 depending on your location. Any extra income you can generate use it to pay your debt with.

    I would recommend a book by Dave Ramsey called “the complete money makeover”. I read it a few months ago and after using Daves system(which is what I explained here) I have already started to make progress. The main thing is to STOP using your credit cards and learn to live under your means. I went from driving a Mercedes to driving a 93 cougar and living in a old trailor. People ask why? WEll because my new motto is to live like no one else so one day I can live like no one else. Meaning im’ looking at the big picture and think if instead of paying bills with all your money you where paying yourself? If you did that for 10 or 20 years then you’ll be making enough of your own money from interest that you won’t have to work and can retire. Whatever your goal in life is keep it in mind and it will help you accomplish this minor hurdle. Best of luck

  • Goonhilda says:

    Don’t go for debt consolidation. It’ll ruin your credit history and you’ll most likely get ripped off.

    Look at your cards. Which one gets the highest interest rate? Pay that one off first. Pay the minimum on the others, and extra on that one. Interest rates are going to go up. If you’re paying a high interest rate on a card, you’re better off paying that card off first, because your money on that card will save you more in the long term.

    If you have your house, and you have room, get a boarder. Put adds up for a boarder at the local hospital and perhaps in the paper. Then, make them provide 3 references, a bond of four weeks rent, and a $10 surcharge a week for bills. That way if they do a runner, you’re still covered for the bills. If you got someone else in, that would give you an extra few dollars a week to clear your debts. I know when you get used to living alone it’s hard, but it could make your life a lot easier. If you have enough room, get 2 boarders. Whatever you can handle.

    I would not go for debt consolidation. It’s a waste of time.

    Contact your credit card providers and tell them that you would like to speak to a supervisor. Ask if you can get a rate reduction for being a good customer, and threaten to go elsewhere. They like your business, so they’re likely to cave in. Keep trying. See if you can transfer the balance of the highest interest rate card onto the lowest interest rate card. This will save you long term.

    Live frugally. Grow some vegies, and make your own lunch for work. If you really want to get out of debt, you don’t need anyone else but yourself.

    Go to the local library and check out some books on personal finance. There are heaps, and you might get some good tips you can use to your advantage.

    Best wishes

  • Jenifer says:

    Hi,

    I used “Credit Solution” to settle my debt and improve my credit score.They managed to reduce my debt up to 58% .It’s legitimate.I came across this company on NBC News.Check it out here:
    http://tighturl.com/683

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