Totally overwhelmed!!! Can't pay credit bills!!! Suggestions?

Question

Totally overwhelmed!!! Can't pay credit bills!!! Suggestions?

Answer 1

My first suggestion is cut up all your credit cards right now.  Do not continue reading until you have cut them up!  

If and only if, you have made the decision to change your and not use them anymore, get a consolidation loan in the form of a home equity loan or a new credit card that offers a balance transfer at a much lower rate with no transfer fees.  I think creditcard.com has comparisions.  Or, check a couple banks.  

Sometimes people's credit is so wrecked by this point they cannot get anymore credit.  If this is you, sorry but you are screwed.  There are options still though.  

If you would like to be inspired to change your life for the better on this look up Dave Ramsey.  He is an awesome talk show host on this topic.  

If you are not willing or wanting to really to change then unfortunately you may continue to suffer like this.

Answer 2

First, organize your confusion.  Make a list of the creditors, phone number, total balance, minimum monthly payment and interest rate.  Just putting it on paper makes it easier to attack.

Next, do you have someone you trust who can help you go over this?  If not, consider a non-profit credit counseling option in your community.  The cost should be very low (under $50).  

If you do it yourself, it is a matter of writing down how much you must spend for necessities each month and comparing that to your net income.  See where you can cut by smart purchasing and doing without luxuries.  Then you can address how you are going to begin paying off the debt.

Not fun but the sooner you start the sooner you get your life back.  Good luck!

Answer 3

http://www.daveramsey.com/

Answer 4

Have you spoken to a credit consolidation company.  if you look in the phone book you should be able to find a couple in your town.

Answer 5

Stop using your credit cards, first of all.

Next, you should consider debt consolidation. Here's a company that'll help with tons of debt or debt less than $1,000 (I know because I'm using them): http://www.ifreebies.info

G'luck! :]

Answer 6

Okay, if you take anyones advise let it be mine.... I am a debt councelor. I would actually recommend debt settlement over debt consolidation or counceling...and the most horrible bankruptcy. The reason being, your situation seems temporary, creditors will in the future look more favorably if all of your accounts have been paid in full. A settlement company will negotiate on the interest and/or the principle balance, and your payments will go down dramatically. Debt settlement is a program that will help you save money to pay your unsecured debts in the future. Debt consolidation, on the other hand, is a program that is designed to simply reduce your interest rates among your creditors. Depending on the amount of debt that you owe, it may take literally decades to clear your name, even with a reduced interest rate. Not to mention, consolidation will also negatively affect your credit score.

I would recommend reading more on debt settlement at the resource listed below. They are certified with the U.S. Organization of Bankruptcy Alternatives and The Int'l Assoc. of Professional Debt Arbitrators.