Vanity - Help with Debt needed

2/5/05 | Myself

[non-religious-conservative]

OK, listen up. I am prepared to get flamed but I seriously need help. I am deeply in debt and need out. I'm not asking for donations, or sympathy. I NOW know how to budget, this is all carryover from my irresponsible ways of a year or two ago. The problem is, that my minimum payments on credit cards are over $1000, and my monthly take home is about $1775, with $400 in rent. So-even before having any fun, I am pretty much SOL every month.

[_katie_scarlet]

I would like to take this time to thank my parents for teaching me fiscal responsibility. I have never lived beyond my means. I have always feared debt. I was downsized almost a year ago and am still financially independent. Please, please teach your children how to budget. Make them understand that a want isn't the same as a need. Material possessions will not make you happy, regardless of how many you buy. Want to avoid debt? Live within your means and put money in savings.

[politicket]

So...are you in favor of this kid being an absolute financial mess for the next 15-20 years by declaring bankruptcy. It's a fool's way out. Look at how crippled United, US Airways, and Delta are now that their credit-worthiness is zilch.

I like the idea that was expressed earlier where this kid should quit school for a semester or two and focus on reducing his debt. Otherwise, his future life (marriage and kids) will be extremely difficult.

[mamalujo]

ha ha good one "prey"

[Maceman]

Call your credit card company and see about arranging for a payoff plan. This could entail giving up your card, but allow you to structure your current debt to them at a lower rate, if you can swing it. It is in their best interest to not bankrupt you, after all.

I absolutely agree that this is the best advice. You can negotiate with them. Let them know that if they don't work with you, you will have no choice but to go into bankruptcy -- at which point they run the risk of getting little or nothing, or at least having to write you off as an uncollectibale asset which does them no good.

Figure out what you can manage in terms of a payoff, make a deal, and stick to your end of the bargain.

[bigeasy_70118]

I respectfully disagree. I have no idea how old the kid is but I think it's safe to assume he's early twenties. He admits to owning nothing. Thus nothing could be seized by the trustee. It will be a total burden for him to pay off. And it is unlikely that if a credit card company took cents on the dollar to pay off the debt, they would allow him to keep the card.

A bankruptcy is only on your credit report for seven years. It will be off his credit report by age 30. Furthermore, with the number of Chapter sevens being filed, it is likely that when he is ready to buy house, upon college graduation or later, the mortgage company will overlook the bankruptcy as a youthful indiscretion.

Also, he could certainly reaffirm the debt on one of his credit cards and keep paying it so that he does have some emergency access to credit.

Bankruptcy has some downside but for this kid, it wouldn't be the financial death sentence you make it out to be.

[agondonter]

I may be able to help you. Email me so we can visit off line.

[agondonter]

I may be able to help you. Email me so we can visit off line.

[RightWhale]

I already have two. And go to college.

Get another job and give college a time out. College is useless anyway.

[RightWhale]

I always wondered: How am I supposed to establish a credit record if no one will give me any credit?

Buy something even if you don't need it. Try a furniture store. Nothing major, maybe a table. Make the payments even if you could pay it off. In a couple years there it will be--an excellent credit rating.

[agondonter]

I think I can help. Email me so we can visit off line.

[Edit35]

I suggest you become a member of the Democratic Party.

Then you can blame your problems on the rich, or the hard working white establishment, or President Bush ---- whichever suits your fancy.