24yrs old w/ $23k ccd HELP!!!!!

iVillage Member
Registered: 03-24-2005
24yrs old w/ $23k ccd HELP!!!!!
6
Wed, 03-30-2005 - 2:07pm
I'm 24 and i pretty much can't take it anymore. But I honestly don't know where to start. I have about 10 credit cards about 7 are behind or delinqent. I tried to call some 1-800 get out of debt places but they wanted way too much money. I want to try and do something about my debt now because i'm scared if i don't do something now i'm never gonna do it. Anybody w/ advice pls respond.

 

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Wed, 03-30-2005 - 3:20pm

Hello and welcome to the board.

All my best,
Danni

iVillage Member
Registered: 02-25-2004
Wed, 03-30-2005 - 3:36pm

Hi and welcome to the board....I didn't get too much info from your post, but I thought I'd throw a few things out there.
1. Cut up all the credit cards
2. Sit down and figure out how much goes out every month versus how much income you make monthly. Calculate EVERYTHING (rent, car payment, groceries, eating out, entertainment, dryclenaing, gas, insurance, lol - every last dime you shell out $ for every month.)
3. Sit back and look at how far in the hole you are. If you are not in the hole take whatever is not being used for payouts as the amount you're going to start putting towards your debt and do the snowballing method.
4. If you ARE in the hole find out by how much you've gone over and then eliminate that much from what you pay out...cancel cable, cell phone, DSL, eating out, find a roomate, move back home for a bit if you can, do whatever is humanly possible to get out of negative numbers, when you do this take the $$ you're saving and do the snowballing method.

I think a lot depends on personal preference whether you decide to pay off the card with the highest apr or whether you pay off the card with the smallest debt...Good luck to you - remember patience, determination, and most importantly sometimes self sacrifice are what is needed to get control of your life back.

:)

iVillage Member
Registered: 11-21-2004
Wed, 03-30-2005 - 10:09pm
Well you are not alone. I am 22 years old with $15,000 worth of credit card debt trying to make my way through school full-time. I have 9 cards total and all of mine are in collections and have been for about one year. I have no idea what to do either and it is very scary. I have read a couple of really good books- they are both by Dave Ramsey- Total Money Makeover and Financial Peace. They are pretty good and I think I am going to give his plan a shot and see if it works. The only thing I worry about is that mine are all in collections. A lot of people on the board have read his books and love it. He also offers Financial Peace University but it costs to join but it is a 6 mos money makeover. YOu get workbooks and info and also phone counseling with someone who has successfully completed his plan and is debt free. I am thinking about trying it. If you're anything like me you don't want to file bankruptcy. I too have called several CCCS companies that will work with the creditors. Let me know how things go or what you decide to do but you aren't alone. Are any of you accounts in collections, where the creditors are calling you? Good luck to you! Hopefully we will both be able to crawl our way out of this mess.
iVillage Member
Registered: 09-22-2003
Thu, 03-31-2005 - 2:51pm

Please be very weary of debt consolidation services. Many people have had bad experiences with those services and though they claim to be 'non-profit' they have to make their money somehow. Ameridebt is the worse. Basically they are charlatans and don't do anything you can't do yourself. They might not even get your payments in on time, and often it goes negatively against you if you are in this type of debt consolidation on your credit reports.

Your best bet is to read throught the threads on the board and see how people have overcome their debt.

First - cut up cards or put them in a bank vault!
Second - write down all debt
Third - write down all monthly expenses
Fourth - cut out anything unnecessary - pedicures, having all the latest stuff, cable, phone - just keep what you need not the luxuries
Five - decide how much you can pay towards these cards
Six- write the lenders to start making payment arrangements, and also call the lenders. It is important to send certified written documentation. See what you can work out with them. They want this paid, but let them know what you can work with. You spent the money, you need to pay it back.

Last piece of advice - do not let this become a bigger problem. Just as a heads up I work in staffing, and some employers use a person's credit score as a hiring measure. I had a girl not get a job because of her credit. The company really liked her but because of her credit they couldn't hire her. This was a large national company and not financial. She had medical bills in collection and a charged off auto. A lot of it was from her divorce but it still affected her job opportunites.

I hope you both stick with this board.

iVillage Member
Registered: 03-27-2003
Fri, 04-01-2005 - 10:56am
I have often told people "I wish I knew 10 years ago what I know now." By the time I was 30, DH & I had 40,000 in CC debt. Five years later, we have none. We got lucky selling our house and have worked very hard pay things off and to not accumulate more debt. It is very hard not to use credit cards. It is very hard to deny yourself stuff.
You are 24 and have a great opportunity to get out of debt and have a good financial future. Most people do not recognize their debt problems until they are facing something big like, mortgage, children or retirement. And even then, snome people never really solve the problem, just let it go on.
I agree with the other posters about budgeting and seeing how you spend your money. I would like to add: keep a positive attitude, come here often, and READ! My favorite financial author is Suze Orman and she just wrote a new book "Young, Fabulous and Broke" It is written for people in the 20's and early 30's.
Good luck,
Sandra
iVillage Member
Registered: 11-21-2004
Fri, 04-01-2005 - 6:35pm
Other great books are Dave Ramsey's Financial Peace ; Total Money Makeover