Posted on 06/14/2009 12:34:13 PM PDT by NoPrisoners
Call your CC and ask about a ‘payment holiday’. Most have it//it allows you to have one paymnt forgiven..int. still compounds...but the pymnt is NOT reported late to the credit bureaus.
Get loans from credit unions at low interest rates.
Pay all credit card bills you can and save.
Get a part time job and work nights.
Wait a month.
“I’d also add you should keep mental track of which creditors are A-holes to you, so that later on, when you get on your feet again, you can dump them for better folks”
REAL good advice here...this is how I ended up with a good small community bank instead of the bstrds that are raising everyone’s credit rates while cuttin their lines...
$20/month phone, $40/month office (Bundling services also helps and can save even more money)
$10/month DSL home, $21/month office
$150/month office space rent (and no additional signing of lease)
$22/month cell phone, $38/month office
$36/month office alarm company if we pay quarterly
$61/month office special usage with water company ( I called and asked if there were special programs for offices that dont use very much water..and yes there was a program!)
Saving about %23 on electricity with energy saving bulbs at the office and about %15 at home
$29/month health insurance...by going with another company I get more coverage and rates are lower since I am in excellent health for my age
- House comes first, call your mortgage servicer and first ask for forebearance, allowing you to skip payments with the missed principal and interest tacked onto the end of the loan. You should have done this well before now, but that’s water under the bridge. It would help to know if you’re in a recourse state, and how far behind you actually have fallen. A loan modification could be in order, if you’re in a recourse state. If no-recourse, I wouldn’t trade away my legal right to walk if necessary.
- Transportation comes second. If you owe a note on your car or cars, you have much less leverage, and they will repossess if you miss more than two months. Get that straightened out. Again, hiding from your creditors, while understandable, is very bad. Most reputable lenders don’t actually want to take on the added difficulty and expense. But, with a vehicle, the fuse is fairly short.
- Credit cards, etcetera ... how far behind are you and how much do you owe? Your credit is already trashed, evidently. With universal default, the rate(s) are likely upwards of 25%. I, myself, would never do this, but it very well could be practical to just default.
- Utilities and such do not typically affect your credit score, but do have a grave impact upon your ability to live in your dwelling. Negotiate a repayment schedule.
- Taxes in arrears can be a real nightmare. But, again, repayment can be negotiated.
In general, don’t reestablish your liability for debt that has been passed on to a collection agency, in word or in writing.
Many of these debt couselor services are scams. Going to one is going to ding your credit even more than it already has been.
Beyond this, I don’t know what to say other than good luck, and congratulations upon finding employment in this environment. I went through the same thing last year, but did not run through all my emergency fund before taking a job with a former customer at a big cut in pay. I do know how it feels, though, and had to think through how to handle financial matters spiralling out of control. They never did for me, fortunately, but the above is what I determined at the time.
Yes, but as others have said, you're not alone. And I suspect it's far more shameful to walk away from the debt than it is to try and make good on it when you're back on your feet.
Hang in there. FWIW, I think you've done the right thing to admit there's a problem, ask for help, and then to follow what you consider to sage advice.
Prayers up your way, sir.
You are not an idiot!
Sounds like you need to make some minimum payments on yoru credit cards etc. Hopefully this is a small problem i.e. a couple of thousand dollars and not a huge issue. If thatis the case think of how you can make the minimum payments until you get paid at work and get back on track.
1. Find a quick job. Delivering Pizza, yard work, part time at retail etc. Find some way on weekend and night to get some cash to make those payments.
2. What can you sell? Do you have a small coin collection and odd motorcycle, spare care, something you can sell to squeeze the cash out of.
3. Can you get a salary advance at work? Probably no but worth a thought.
4. Is your wife working? Can she work part time something to bring in a little scratch.
5. Last on my list would be do you have a IRA or 401(k) you could take a loan against or family that could help? If you truly just need 30 days capital to get you there. I hate borrowing from family but when puush comes to shove...
Most of all like others are saying CALL your credit card companies and work with them directly. Don’t wait for them to call you. Also only promise what you can for %100 do. Don’t promise to pay $100 and then only be able to afford $50. Doing what you say will go a long way to building your reputation that the lendor can actually work with you.
If you do use a crdit counseling service make sure its non profit. Don’t pay anything for the service.
Best of luck. Hope everything works out okay. Sounds like you have a good head on your shoulders and are doing what it takes.
Most of the credit counseling firms are THIEVES AND CROOKS! they take in “fees” as much as you would save by the reduced payments they supposely negotiate. STAY AWAY!
The NFCC is one of the few legit groups. http://www.nfcc.org/
Congratulations on the new job!
I’d stay away from credit counselors. Just contact the various parties you owe money to and explain the situation, and ask if you can make just token payments for two months, and then start making regular payments again after that. Most will be reasonable.
Don't trust these 'advisers', after all, they too need to be paid, and you will be expected to pay them. The last thing you need is another person in line waiting to be paid. Pay the things you absolutely, positively must, and the rest can wait.
Dave Ramsey,
When hubby and I were having some severe financial problems we followed his advice and while it was not easy, we’re doing fine today. We still use some of his advice, especially for budgets.
In a perfect world you'd have family who could float you a loan to meet your payments. If not, then go to the bank and ask for help..Try it anyway.
And FWIW, you are not an idiot.
sw
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