Im 23, $20000 in credit card debt, no money, my job isnt good what should i do?

Question

Im 23, $20000 in credit card debt, no money, my job isnt good what should i do?

Answer 1

I can't believe there are people here telling you to file for bankruptcy. That's the LAST thing you want to do. Bankruptcy stays on your credit report for years, and why would you want to start your life out with a black mark on your credit history?

First of all, you have to sit down and figure out how you got into this much debt. $20K is a lot of debt for someone  your age who owns no property.

On the other hand, $20K isn't that insurmountable. You believe it is because You now know the burden of the debt millstone around you neck. Feeling that burden is good: it's educational and inspirational. Once you figure out your own spending habits, change them. And, take this as advice from a 53-year-old who's been there: change you habits NOW, because it's a lot harder when you get older.

Here's what you do:

1. Are you in a credit union? Find one you can join and open a small account. Then, talk to them about either rolling your credit card balance into their card, or taking a signature loan to pay it off. Either way, the interest is lower, and CUs are often more willing to lend to their own members with lower or no fees or charges.

2. You have a job, doesn't pay much? Get a new job. It's as simple as that. If you don't want to quit this job or can't, get a second job. Doesn't matter where: convenience store, fast foot, waiting tables, whatever. Then take everything you make from the second job and apply it to the debt, without fail, every month. Yes, you're going to be tired and your social life will stink. Those are the consequences. Missing a few nights out now will make your life a lot better later on.

3. If you keep or switch credit cards, you must do one important thing: make every payment on time. Not a minute after the payment date. In fact, make the payment early if you mail it. If you have a bank account and they have a web-based banking feature, pay the bill from there, electronically, EARLY every month, and set up a reminder to yourself in the email.

Here's why: many credit cards offer you a low interest rate at the start. if you're one hour late with a payment, they have the right to jack that rate up to anything they want, and I mean anything. I had a card that did this to me some years ago: the interest rate went from 8% to 23% in one month because a payment was a day after the due date. Once the interest gets into the double-digit range, they own your *** for years.

Second reason: they will hit you with a late payment fee the next month, and that fee will be at least $25, likely more. They just add it to the balance, and you pay even more interest.

4. Take a good hard look at what you spend. Do you smoke? Quit. Have a car? Make all your necessary trips at one time to save gas. Know anyone from work you can car pool with and share expenses? Do you drink soda? Drink water. tap water, Reuse the bottles and keep them in the frig. Do you drink alcohol? Stop or cut back. Bars are expensive and so is beer. Treat yourself to a couple on your day off, maybe while watching the game. Do you hit the bars a couple of nights a week? Cut it back to one night every two weeks. Yes, you'll miss the girls -- guess what? The girls will always be there. The faces change, but they'll be there.

5. One last thing: you need to save some money. Open an IRA with your bank/credit union and stick a few dollars in it when you can. Doesn't have to be a lot, $20, $30, $100, whatever. Do it every week. You have to pay yourself, and you'll have something for retirement or an emergency. I know you don't like to think about things that far off, but you can't become a financial burden to those coming up behind you. Start preventing that now.

Answer 2

How did you get into so much credit card debt? I've always wondered how people do that. I guess it's pretty easy to do...I just don't understand how people can let themselves sink that far.

But I agree, bankruptcy would probably be your best bet.

Answer 3

Chapter 7 BK is right for you: As an individual, you can select between Chapter 13 or Chapter 7 bankruptcy. Selecting between the two is not easy. The bankruptcy court will study your circumstances before deciding which type of bankruptcy is applicable to you.

The Chapter 7 bankruptcy is applicable if you have no regular sources of income. It works by reducing or clearing off all your debts. You can then make a fresh start without having to worry about having to pay your debts.

Once you file for Chapter 7 bankruptcy, the bankruptcy court assigns a trustee who works as an intermediary between you and the debtors. He oversees everything and checks out if the bankruptcy plan is going as planned.

http://get-out-of-the-debt-trap.com/cate...

Answer 4

Credit Cards are way too easy to get, esp. for young people. I am 21 and forever being hassled about not having one. I would start by gathering your latest credit card statement, and looking at your monthly bill. If you pay the minimum amount every month, you are never ever going to get out of debt. Some companies will allow you to stop the credit card and all added interest. Others will not. I would contact your company and see what options you have. As far as your job goes, as your supervisor or manager if there are any advancement opportunities. You can take even the crappiest jobs to a better level. Ask them what it will take to get you that raise. If all else fails, begin looking for another job or a second. Take a hoppy and turn it into cash!

Answer 5

the longer you wait, the bigger that debt will get. you need to find a way to work out some kind of plan for yourself. stop spending money on whatever it is that you THINK is imporant and concentrate on that debt. becuase if you dont and people look at your credit history, well....youre not gonna do so good.

Answer 6

Look for a better job or perhaps two until you can pay off your debts.

Answer 7

A. You shouldn't have got yourself into the much debt.  Common Sense should have told you that.

B. Start trying to pay it back.

C. If you can't, cotact a lawyer about bankruptcy.

Answer 8

First, cut up the credit cards, work another job, cut back on what you're spending, look for a better paying job and if all else fails, file a bankruptcy.

Answer 9

the interest repayments on your credit card bill can sink you into a larger debt. agree with some of the above comments to declare yourself bankrupt. you will still need to repay your debts, but usually a repayment plan will be worked out with you.