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jasminblu

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Score of 480 at 21, where do I start?
I’ve completely messed up my credit and I want to turn it around. I have 6 different student loan accounts opened: 1 that is private but has been closed ($10,011), 4 that are from the DOE with 4 missed payments on each ($4240), and 1 from the college itself that is closed ($1356). I have 1 credit card account that is closed, and I just had a judgement ruled against me that I want to try to appeal if possible ($580 inc. court fees, judgement hasn't shown up on my report yet) and 1 secured credit card that is currently in good standing with 1 missed payment. I also have a car loan that I am upside down in with 11 missed payments ($9259). Does anyone know what I should do to start rebuilding my credit?

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It really depends on how much your income is, but if you are not making much money you may be a candidate for bankruptcy. In most cases Federal school loans cannot be included in Bankruptcy, but sometimes in rare cases they can be. Either way, getting your debt knocked down to four grand would be much better than where you are now. Keep in mind that bankrupcty does hurt your credit, but the position that you are in now, it may be a better route. I advise that you consult with a Bankruptcy attorney to see what they have to say. I also add, give up on credit for a while, it is not a good thing for you at this time in your life. Remember, credit problems are spending problems, learn to budget, change your lifestyle, find less expensive things to do with your time and work more hours, when you are working you are not spending.

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Think over the hump.

Jasmin, "TryingToUnderstand" hit it right on the nail. BUT do not get down on yourself. I was worst off at your age. As long as you do not have a criminal record you will always have an oppotunity to find good jobs. Also being female gives you a certain advantage at finding "gig" jobs. Depending where you live of course. I have a female nieghbor that will get gig jobs for cash and works a full time job during the week. Just have to be safe about it. Like Trying said. Change your lifestyle. Forget friends that just want to party but they offer you nothing in the long run. Shedding relationships like that is part of becoming a mature and financially sercure adult. Also like Suze Orman says: "take pride in saving your money". This is critical. Stop spending on things you do not need. Just try and get by with only the necessities. That means no pets, try and buy clothes you can use for work and play, eat at home not out and about, if you can walk... do not drive, if you can find a friend you trust  to share your car with ...and also share the payment with. These are small things you can do to save money. Be disciplined, do not waiver.  Also, keep your mind open to traditional and non-triditional options. As long as your safety comes first.  And if you can get someone to help you ...don't be ashamed to ask for it. We all need help at one point or another. And one day it will come around and you will help somone.

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