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Question By
cheryl7695

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0 People Helped
My credit score is 549. I have 39,000 in debt but only make $145.00 per week. What should I do?

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Bite the bullet and learn

Helpful to 5 out of 5 people

Hey there. 

Your words sound exactly like those of myself several years ago. I got into debt when I moved out of my parent's house and things just spiraled downhill from there. I also lost my job and was on unemployment for a while. I had always believed that I should pay what I borrowed and struggled to do so until the weight was too great. I lost all hope for life and my future due to the collections, non-stop, ongoing harrassment from collections and having no one anywhere to help me. After doing research and reading about those who had fallen and rose from the ashes of their mistakes, I came to some crossroads. 

1. Either struggle for the rest of my life trying to pay those bills, literally. 

2. Give up my pride, pay off what I could and take the bankruptcy. 

My credit was so bad that backruptcy couldn't make it worse. I was that far in the crapper. So, while on unmployment, I chose the debts I saw hadn't tried to screw me over, had worked with me and that weren't hopeless. These included small credit cards and rent I owed when I had to move out early due to evictions. I contacted them all and they worked out payment plans with me. Some even cut out the fees or lowered the debt if I could get it paid off in 4 months to a year. To pull out as much money as I could to pay them back, I utilized free and low cost services for daily things like food, medical help, transportation and whatever else. It took about 1 year and 6 months to clear all those, but it felt great. Each letter of "Paid in Full" were trophies. During this time, I also contacted a lawyer to get information on backruptcy. Slowly but surely, I saved up enough to pay the fees. The remaining accounts were those far too gone to set straight in my situation and they were discharged. I suppose my debts weren't worth the time since not one creditor showed up. 

Now, I am rebuilding my credit, properly managing my finances and am wiser/happier. I would not change anything because after that ordeal, the harrassments,embarrassment,  the depresssion, the pain...it is a reminder etched and burned into my memory. What I know now will keep me from making that same mistake over again.

Regardless of the horrors I heard about backruptcy, in my situation, this was my way to freedom. My credit score actually went up after the backruptcy. It was my second chance. For those far gone, I recommend it. Keep in mind that simply discharging the debts alone never solves the overall problem. You must fix the way you think, live and spend. Some people just keep repeating their mistakes and do not learn.

You can bounce back on either decision you choose. You can rebuild. Just make sure that you don't ruin your life trying to do something you may not be able to do. No one is going to strike you down if you have to admit defeat. Just get back up afterward. 

Reply by
paul118

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0 People Helped

you did the right thing , sometimes if creditor no's you are serous about going bankrupt they will settle for whatever they can get. with info given you most likely could file chap 7 and they would get next to nothing . so likely the deal , paying some but not others can get you in trouble in some bankruptcy, but i understand the thinking about not paying to ones trying to screw you over when your are down.
 in my case they all settled after i started looking into bankruptcy for the principal i owed had to pay taxes on forgiven amounts ,but since i had little income  then there was little tax.lieablty..

this was years ago i will never use big bank credit again , cash is best whenever possible and micro loans  from peers are best way to borrow only if needed..

4 Contributions
12 People Helped

Get an additional job.

Helpful to 3 out of 3 people

Like bigkahuner said, you will need another job. It's not necessarily what you want to hear, but there really is no other way around it. I make more than you do, and have just as much if not more debt than you, and I can barely afford my bills. To be blunt, there is absolutely no way you're ever going to be able to pay off your debt making $580 a month.

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3 People Helped

Helpful to 1 out of 1 people

Find the nearest branch of Consumer Credit Conseling.  They will work with your creditors to reduce your balances, and set you up with a payment plan that will eventually pay down your balances. 

You won't get out of that hole alone. 

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6 People Helped

Hi

Helpful to 1 out of 1 people

We need more information if we're going to offer advice. What type of debt is it? (student loans, mortgage, etc.) Is it ONE $39,000 debt, or do you have a combined debt load of $39,000. How long is the term, how much is the interest rate, and what are your current payments?

Thanks!

Reply by
cheryl7695

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0 People Helped

I have $20,000 in student loan which I have not paid yet. I am trying to get them to lower my payment. $10,000 is in car loan which is now closed. The rest is in credit card bill which in now in collection. I am currenly lay-off and drawing unemployment. That is why my check is so low.

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1 Person Helped

Re:

Bankcrupty is your only option. 

1 Contribution
0 People Helped

Get help

I'd like to second te poster above who said you won't get out of this alone. It would help to know what sort of debt this is. If that's a mortgage, you're doing OK. If its credit cards or a private student loan, that's a very different issue. I love Dave Ramsey & Suze Orman but they can't fix this if that's consumer debt like CCs. If thats the case you should consider bankruptcy. Would live to be more help, let us know what the makeup of the debt is. 

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Read anything and everything by Dave Ramsey.  Then become a Suze Orman fan.  You must live like no one else so you may LIVE like no one else.  Read his books.  This will make sense.

1 Contribution
1 Person Helped

Get a real job

Helpful to 1 out of 3 people

You'll never get out of debt untell you make some real money. You need to up your income. get another job, a new job or get training for a new job, move to where there are jobs. Do somethint to increase your income. 

Reply by
cheryl7695

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0 People Helped

Right now I am currently laid off. I stay in a small town where it's hard to find employment. I will be going back to school in the fall. Trade Act will pay for me to go to school, transportation, and moving expenses. Hopefully, I will find a part-time job.

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Helpful to 0 out of 1 people

You will never finish paying your bill in this life.

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