Hitting rock bottom(kinda long)
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Hitting rock bottom(kinda long)
| Fri, 03-17-2006 - 8:40am |
I cannot believe I'm in this situation. I was a stay at home mom for almost 10 years, which we could never really afford, so I used credit cards to fill in the holes..then I went back to school when my baby started kindergarten to finish nursing, took out student loans, but since they don't get paid out until well into the semester, I had to put all 2 years of tuition on the credit cards, and of course the student loan never made it to pay on them..always something else had come up & we needed the money. Well, I always justified the increasing debt as being for a good reason, so I could be home with the kids & go to school. I reasoned as soon as I graduated & got working, I would pay it all down, start a savings account, and everything would be great. Well, it's been 9 months of working as an LPN, making more an hour than my husband, and things are the worst they've ever been. For the first time, I don't have enough to pay bills, I've had late fees, checks overdrawn. I can't sleep at night, my neck hurts, my stomachs in a knot & I get chest pains. I finally realized I had to do something, so I looked into the care one credit counseling service & I think I may enroll...when I actually listed all my credit cards, I nearly vomited when I realized there's $26,000 worth of debt!!!! I just cannot believe it...since I've paid late a couple times and went over the limit on one of them, my interest rate on the highest card is 23%, I paid $250, and $200 went to finance charges!!! So, I'm thinking I may go with the debt consolidation program..I 'd really like some feedback..I need to hear from someone who has had this much debt & gotten out of it, or at least on their way out...anyone have success with the consolidation programs? Please tell me this is fixable!!!!!

Hi Mrs.moo!
Debt is all relative. I didn't have as much credit card debt, (I think it was only about $7,000), but it could've been $700,000.00.. all I knew is that I couldn't afford to pay it!!
(now that I think back.. I really wasnt't responsible enough back then to pay it) So, I enrolled in a Credit Counseling plan.
Well, four years later, I have two payments left, and I will be credit card debt free. (I still have car loans, mortgage and student loans!)
I really don't know what credit counseling does to your credit.. I know it's not good, but my credit was already shot when I entered the program, so this wasn't going to "ruin" it by any means. It's a set payment plan, and you don't have to worry about getting each credit card payment in on time. Your credit will get better in time because your overall debt goes down, it kind of over rides the fact you are in a debt program. At least that's what happened to me!
The company I went with did a really great job, no late payments and always there if I needed to call with a question. I guess not all credit counsel's are like that.. so make sure you do your homework on the company.
I think it's great that you are trying to get our credit cards in order. Don't get discouraged if you don't see instant results. It does take a while to start to see your debt go down!
GOOD LUCK!!!
--Shannon
(((mrsmoo))) - deep breath.
All my best,
Danni
We have the same amount of credit card debt as you, as well as some student loans, and I hear you on the late fees and the never having quite enough money to make all the bills.
Before you go with a credit counselling service, give yourself a bit of time to get over the number shock. Then decide what to do. I've never done a credit counselling service, so I can't really give you any advice about it, but other people do seem to have some success with them.
It sucks when you make a $250 payment and only $50 goes to the principal. But at least the debt is down $50. One suggestion: I read an article about a suggestion Jean Chatzky had to pay your minimum payment in 2 parts - half on every 2 weeks. This cuts down on the interest, apparently, because interest is compounded daily. My husband naturally took that to the conclusion of paying 1/30 each day, but he's silly. One payment every payperiod out to help.
You can do this. It's all one step at a time. You've already taken the first step by writing down your debt.