I feel like I'm drowning.....

iVillage Member
Registered: 11-03-2003
I feel like I'm drowning.....
5
Thu, 08-19-2004 - 3:17pm
I'm 27 years old and I'm still paying off debt from my early 20's. I was not very responsible back then and even let some credit cards go. I just paid off one credit card because they were going to take me to court (at least they scared me to believe that) so I took out a loan with my bank and paid it off. I'm paying that loan off every pay check but only paying the minimum because it is all I can afford.

Today I recieved a call from a collection agency about another card...one I have really been neglecting paying off and it's for about $8,300. The card was maxed at $5,000 back in 2000 and I really neglected paying it so it's now up to $8,300. I'm so embarassed and I feel like a deadbeat but I just didn't have the money to pay it.

So I have these 2 credit cards that I'm paying back and all my other expenses. I also pay my student loans once a month and that is going to take me forever to pay off.

I make decent money but it never seems to help me dig myself out of this mess. I stress about money constantly and I don't know what to do at this point. I feel like I will forever be behind and won't have a good credit score ever again.

I feel like I'm drowning and will forever live in this world of debt....is there anything I can do??

iVillage Member
Registered: 05-30-2003
Thu, 08-19-2004 - 6:32pm
Hi, and welcome here. The first thing that I thought of was to get your student loans put into forbearance if possible (is that the right term? Or am I thinking of deferring them?) due to hardship.

A really really good resource for you may be to go to your local library and check out (or get through Interlibrary Loan)a book by Jerrold Mundis called "How to Get Out of Debt, Stay Out of Debt, and Live Prosperously." He's been there done that with the credit cards, and has some awesome strategies about how to deal with them. One of the things to do is a pro-rated budget, where you take care of YOU and your basic needs FIRST, then figure out how much you have to send bills. Many times the creditors know that if they can get you to react out of fear then you'll pay them to avoid having something 'bad' happen to your credit. Thing is, if you can't pay them right now, you can't. Probably, when you paid off that one, it was noted that, 'Hey-this method gets results" so it's going to be tried again.

You're not going to drown, but it may not be easy in the short run. Keep hanging around here-we're all full of great advice, lol-

~Lisa

Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Thu, 08-19-2004 - 8:36pm

Welcome - Hang in there!!!

Avatar for zaboz
iVillage Member
Registered: 03-26-2003
Thu, 08-19-2004 - 9:01pm
I can totally understand how you feel. I was so bad

with money in my early 20s and I spent so many years

trying to pay everything off and settle my accounts

that went into collections.

I think the advice to ask for student loan deferment is really

good. It will give you a little breathing room for a while.

You might also try to negotiate with the collection agency.

The extra fees are usually up for haggling, in fact a lot of the

amount might be if you play your cards right. If you can take

out more loan money with your bank to make a settlement it might be

worth it. For example, tell them you can't possibly pay $8300

but you (after checking with your bank) could pay them $3000 right

now if they would consider the account settled. Start low and just

see what they say. You don't have anything to lose and it will be

a load off your mind to have it taken care of. Make sure though,

if you do settle, that you get it in writing.

A budget is a great idea too! I always thought I had "nothing left

over" but once I starting setting up, and sticking to, a budget everything

looked better. You'd be surprised at how much money runs through your

fingers if you're not keeping track of it.

Best of luck! Don't feel bad! It WILL work out, sooner or later,

and things will be looking up. I remember looking at my credit report,

crying because I was so depressed and ashamed at what I had done.

But now a few years later, I own a house and have decent credit.

So there IS a way out and you will find it if you put your mind to it!

iVillage Member
Registered: 11-03-2003
Mon, 08-23-2004 - 11:30am
Thanks to everyone who responded. I feel much better knowing I'm not alone and that some day I will be out of it.

I placed my student loans on forebearance and I'm going to be moving in with my boyfriend. As soon as that happens I'm going to place myself on a budget and try really hard to stick to it. My goal is that I'd be out of it by my mid 30's.

Thanks again for the support and well wishes. I've never done a chat board before and really I just stumbled on this and thought I'd look for advice.

Thanks again!!!

iVillage Member
Registered: 08-13-2004
Mon, 08-23-2004 - 8:42pm
HUGS!!! I sure understand! Keep your chin up! You'll get through it, and you'll get out of debt! Believe me, taking 5 years to pay off old debts isn't what i'd like to do. I'd rather pay it off sooner. BUT I'm focused on the need to be able to stay current on new bills coming in, have savings/freedom account and investments and the like. SO I'm taking longer. Maybe not as long because I'm going to hopefully have an income soon with my freelance writing. Once school starts I'll have enough clips from a nonpaying publication that should help me get paid work with a local newspaper.