Financial Advice PLZ!

[shellshock]

ok, i need financial advice cause i'm getting screwed over big time and i don't know how to fix it. its all really overwhelming and usually i try not to think about it cause it just gives me anxiety.

first off i make close to minimum wage and can only work 24 hours a week because i am in school full time. (i'm trying to get a different job).
i have a lot of money out in loans right now as well as a collections agency that takes $60/month from me every month. also, the bills i have to pay are insurance and phone bill every month. i moved back home to try to get out of debt but its not working yet. i think i have a $200 ticket in seattle that i never paid.

i am getting screwed over by this credit card that i got a late payment on. i have 2 credit cards, with about $900 on one and $420 on the other. the one with $900 is charging ridic interest so the amount is going up. i don't know what to do cause i feel like im never going to be able to pay this **** off.

i need to get a credit card with 0 interest for awhile but i guess i don't qualify for a credit line high enough to transfer the $900 one. really this sucks. advice anyone? before the feds come after me and i have to flee to chile...

 

[Kasper]

While I don’t want to encourage you to screw up your credit record don’t be so intimidated by these credit card companies. I wish I only owed a couple grand. If it gets to the point where the CC companies or collection agencies start calling you at crazy hours looking for money tell them that their harassment is making you consider ending it all and they’ll back off a little bit. This is the best advice I can offer.

 

[Thomas]

First things first - are you able to pay these folks - i.e. - is your cash in greater than your cash out? If not, re-evaluate your expenses or employment so that you have more income that outlay.

Are you getting any CC solicitations with low "teaser" rates? Say 5.9% for a balance transfer. Call the bank with the $900 balance and talk about rolling the amount over to another bank if you don't get a rate reduction and rebate. They can reduce interest charges retroactively (to a degree), if you give them a good enough reason. You may need to block out 30 minutes or so to make this call, since you're going to have to whine and wheedle and climb the ladder (speak to a supervisor) a bit. Essentially, you'll be a pest that they'll want to get rid of (I know, it's distasteful, sorry).

Right now they're happy to charge the interest since you're a student and expect you to get a better-paying job and pay them off. While I wouldn't threaten, I might mention that it's hard to stay afloat and you're doing the best you can, but ...help me out on the interest!

If you strike a payment plan or deal, whatever you do, stick to it! Don't give them a reason to step on you with more interest or late fees. Good luck, and I don't know your situation, but I ate a lot of ramen noodles at school and I wasn't alone in this, it's what made me hit the books and graduate!

 

[Charley]

Stop charging on these cards. No beer or movie rentals. Eat at home.

Pay 150% of the minimum pmt. on the card with the larger balance.
Pay $110 on the $420 balance card - pay off in four months.

Then pay off on the larger card at the same rate - min. pmt plus $110 a month.

DO NOT miss a payment or make one late. The damned late charges and penalties can eat you up.

You might also check into doing some work at UPS if they have a station nearby. They used to hire some part timers this time of year. Pay is generally OK and hours are at night.

 

[redcaimen]

You are only working 24 hours a week? Get another job. Cut up your credit cards. You dont need the damn things. If you need to leave school for a quarter/semester then do it. You owe less than 1500 bucks! One month of 60 hours weeks and your problems are all over. Plus if you are working and going to school all the time there is no time to spend the money.

 

[rdawson808]

DO NOT file for bankruptcy. Whatever you do. Beg and borrow from family and friends to get out of it, but do not file for bankruptcy. Trust me. It will haunt you.

Others have offered good advice that I wish I had taken. Start calling the bank/cc co. to whom you owe the larger balance and tell them you are thinking of switching to a lower rate card. And maybe drop that hint about filing. They would rather you pay them something than nothing.

bob

 

[aybojs]

Honestly, it's a little baffling why you would be looking for another credit card when you already accumulated substantial debt on two of them. I think the lesson would be to stay far away from any form of credit and only pay cash (or use a debit credit if you're not at a point where you risk overdrawing regularly) until you have your current problems sorted out. It seems that if you're already in a bad situation credit wise, just getting another credit card will make things worse.

If you're able to live at home to minimize costs, the first thing to do would be to ask family to help pay your debt and then worry about paying them back instead of a large, interest-charging credit company.

If that isn't an option, then you should definitely look into the possiblity of changing jobs (which you say you are). What do you do right now? There's no reason you should be relegated to a job that makes only a little above minimum wage when you're working part time and actually dealing with living expenses. Some possible alternative jobs that come to mind that could fit your need for more money and a flexible schedule are waiting tables, getting some sort of campus job at your school, or doing graveyard shift work (typically pays a few dollars/hour more than normal shifts).

 

[Edward Appleby]

Cut out the good food, beer, and entertainment expenses, like Charley said, and ask j to ban you for a while so you don't buy anything "because it's such a good deal." ;D

If you're living at home, you shouldn't really have any expenses except perhaps gas. If you can trim $30 a day from your expenses, you'll save up enough to pay off your debt in two months. If you have any nice clothes you don't need, flip 'em on ebay.

 

[lawyerdad]

Originally Posted by rdawson808

DO NOT file for bankruptcy. Whatever you do. Beg and borrow from family and friends to get out of it, but do not file for bankruptcy. Trust me. It will haunt you.

Others have offered good advice that I wish I had taken. Start calling the bank/cc co. to whom you owe the larger balance and tell them you are thinking of switching to a lower rate card. And maybe drop that hint about filing. They would rather you pay them something than nothing.

bob
Well, really, there's no reason to think about filing for bankruptcy. Whether you hint at it as a negotiating ploy with the cc lenders is another issue. But you really don't know that much money (yes, I know it's a lot to you). Filing fees, etc. for a bankruptcy would amount to a significant fraction of your outstanding debt.
To repeat what some others have said: cut up the damn cards. You can live without a credit card. Negotiate a reduction in interest, late fees, etc., or have them rolled over to another card with a teaser rate to buy some time. You might check whether your school has emergency student loans and/or a credit union. You might be able to borrow enough to pay off the credit cards, and convert the loan to a situation with more favorable interest and/or repayment terms (often student loans will defer interest for so long as you're enrolled). And just do what you need to do to pay it off. Eat ramen or pasta at home rather than buying take-out food. Don't go out drinking with your buddies until it's paid off.

 

[shellshock]

my $900 credit card balance comes from when i had to pay for a semester of school all myself, because i couldn't get any loans and if i didnt go to school my insurance would be cancelled. pretty lame situation.


thanks for all the advice. umm, i am trying to get another credit card to transfer the balance so i can have 0 or low interest for awhile. BUT, i was recently denied the Hello Kitty Platinum Visa Plus because i have "delinquency and a public record or collection account appearing on your credit file and you have current or past delinquency with one or more of your creditors".

what does this mean? i have a feeling it's this account from a university i attended. its crap like this that makes me feel helpless. -_-

i don't go out. i am pretty much a hermit. the reason my financial aid situation is really screwed is because i owe this university $1000-$2000 and so they are witholding my transcripts, so that i cannot currently get financial aid from the school i am attending right now. the school i am attending bascially told me i need to figure it out its not their problem. i love life.

 

[lawyerdad]

I love the fact that there is a "Helly Kitty Platinum Visa Plus". That makes my day, actually.
Sounds like you need to order a copies of your credit reports so you know what's out there.
Start here:
http://www.ftc.gov/bcp/conline/pubs/...reereports.htm
Which insurance? Medical?