Where can i get help on getting out of debt? im a student?

Question

I made some stupid and immature decisions and now im $2300 in debt and im only 20 years old. I looked up my credit score and the estimate was 520 based on the info i gave the site. The 2300 is made up of 1 credit card, 1 American eagle store card, and a check that got returned and sent to collections and my t-mobile cell phone account. Am i completely screwed? or is there a way to bounce back from this? I am a college student and i dont make too much money? Can i consolidate that amount? It is already effecting me...I cant even get a cell phone put under my name. I plan to get a house when i graduate rather than i apartment and i want to get in the 700s credit score in 3 years. Is that possible? Thanks for all your help guys

Answer 1

Keep your head up--you can do this! The debt probably wasn't created overnight, and it is going to take some time to work through to pay it off. Here a couple of quick tips for getting out of debt, and staying out:

1. Stop charging

2. Pay debts off smallest to largest, regardless of interest rate

3. Divide credit card minimum payments in half and pay that amount twice a month.

4. Make micro payments (commonly referred to as snowflakes) any time you receive extra money.

5. Don’t waste time with balance transfers, unless you owe more than $10k.

6. Find part-time work.

7. Close out your newest accounts as you pay them off.

8. Get angry! Make debt repayment your top financial priority and focus all your energy on getting out.

Answer 2

Contact the individual companies that you owe money to. If its a collections account, contact the collection company. Ask them if they will report to the credit agencies that your account is and always was in good standing, IF you agree to pay them the amount of the debt (or a percentage of the debt.) If they agree, MAKE SURE TO GET IT ALL IN WRITING, AND SIGNED BY BOTH PARTIES AND PERHAPS A NOTARY. They might just agree. Some may try to scare you, saying they work for lawyers and such, and its a legal matter, etc. But trust me, they are all just a bunch of commission based call center reps.  So dont be scared. And ask them this BEFORE you give them any info about you and your account with them. Because if they say no, but they know who you are, they can say that you contacted them but wont pay, and they're more likely to call and call and call and call and call...you know how creditors can be. So ask for a  manager if you have to, but this is what I would do. There are professional 'credit repair' companies that do this for you but they're expensive. So try it out! U can also negotiate, like if the debt is $1000, you could say you'll pay one lump sum of $500, or 2 sums of $300 each, or 3 sums of $250 each, etc. The bigger the 'chunk' the less you may have to pay. Good Luck.