I declared bankruptcy about 24 years ago. Took a few years to get back on my feet but I'm doing very well today and my credit score is over 800. I saw a free credit counselor. She worked for the state or county or something non-profit. She said bankruptcy would be my best way out.
Personal Debt Issue...What Can Be Done?
- Thread starter 1blkc5
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IMHO asking a bunch of armchair warriors on an oil forum is hardly the place I would be asking about financial, legal or medical questions, seek professional advise, not google. JM2C
I admire your honesty.
First off, that's really all that much in the grand scheme of things. Less than a years income for most people, a lot less for many, Second, being unsecured debt and not working, there is not much the lender can do but wait until he starts getting income. Why isn't he working? Lost job, injured, permanently disabled?
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Imho being willing to work 100% in the office is a way to rid oneself of the majority of the competition.
The way I see it is many new hires are 100% in office.
It’s similar to the tug of war in a 401k qualified plan. Too many highly comped max out to the irs limit. Too many non highly comped don’t participate. So the plan is lopsided. Employer is looking for non highly comped to contribute and offer rewards to encourage it. Same to those willing to work 100% in the office. It’s a leg up if you will.
Lots of sound advice in here. Too little information as far as the type of debt.
My personal feelings debt consolidation company should be your last resort however, with that said, some people just might be challenged that way, so maybe it isn’t a last resort
Next option would be to talk to a bankruptcy attorney. Some will charge very little for an initial consultation.
My favorite would be if it’s credit card debt call the credit card companies and tell them that you’re going to file for bankruptcy and what type of deal could be offered to you in order to settle your debt if they are willing to settle. This may be used also for hospital bills.
The last thing, if you qualify if OK with ruining your credit for a number of years, file for bankruptcy to get your life together, time goes fast you’ll be able to re-establish credit with some determination and hard work fairly quickly.
Good luck to you. It really isn’t enough information to comment any further.
Everything I posted is also based on whoever this person is that they are working to their full potential, and every hour of the day that they physically can to earn money.
My personal feelings debt consolidation company should be your last resort however, with that said, some people just might be challenged that way, so maybe it isn’t a last resort
Next option would be to talk to a bankruptcy attorney. Some will charge very little for an initial consultation.
My favorite would be if it’s credit card debt call the credit card companies and tell them that you’re going to file for bankruptcy and what type of deal could be offered to you in order to settle your debt if they are willing to settle. This may be used also for hospital bills.
The last thing, if you qualify if OK with ruining your credit for a number of years, file for bankruptcy to get your life together, time goes fast you’ll be able to re-establish credit with some determination and hard work fairly quickly.
Good luck to you. It really isn’t enough information to comment any further.
Everything I posted is also based on whoever this person is that they are working to their full potential, and every hour of the day that they physically can to earn money.
Well, honestly, that’s what some people are suggesting that they do.
Getting a wide range of opinions, certainly help someone focus on which direction to go and bring up things mentioned in this very forum with a professional if they need such help.
Not only that, but there are a wide variety of people in this forum with occupations, other than dealing with oil, some in the medical industry, some of in legal fields, some of the banking fields, and everything in between.
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Not really sure what "alot" means.
Easy answer: pay it and keep your good credit, dont pay it and lose you good credit. Looks like from your list you have some toys, does selling them pay the debt? Hows your credit worth to you.?????To many variables
You've got the right idea. As long as you're making the payments and not adding to it you'll get there.
Check with a credit union or your state's consumer affairs department and see if there is a non-profit credit consolidation organization in your area. The non-profit groups are far better than the for profit consolidation outfits and they help the client to rebuild their credit and offer "classes" on how to handle money, how to stay out of trouble, etc.
I consulted with the following group about 20 years ago when my mother realized that she was deep in debt and it was only getting worse by the week. She refused to go because my brother did not have the backbone to stand with me and tell her she needed to change and learn to live on a strict budget (she had what I call the "...I see I buy..." disease without regard to what things cost). She would have benefited greatly from such a service.
https://creditadvisors.org/
Credit Advisors gets their operating monies from grants from all kinds of foundations and consumer groups. They are on the up and up and if they charge a client a fee, it is essentially just a token amount so the client is made to realize that there is no free lunch in this world.
Good Luck to your friend!
I consulted with the following group about 20 years ago when my mother realized that she was deep in debt and it was only getting worse by the week. She refused to go because my brother did not have the backbone to stand with me and tell her she needed to change and learn to live on a strict budget (she had what I call the "...I see I buy..." disease without regard to what things cost). She would have benefited greatly from such a service.
https://creditadvisors.org/
Credit Advisors gets their operating monies from grants from all kinds of foundations and consumer groups. They are on the up and up and if they charge a client a fee, it is essentially just a token amount so the client is made to realize that there is no free lunch in this world.
Good Luck to your friend!
I keep an updated cheat sheet on the computer that tells me when each card is due and what the balance is. Otherwise I couldn't keep track of everything.
Not recommending this but both of my ahem relatives just quit paying their credit cards. 7 years later he got a car loan on his own. Card all gone. Me, I've got an 800 credit score but can't get a walmart card because I don't owe anybody. Go figure.....
Yep, sounds like a very good idea.
Same with me. I got an 810 credit score because I have ZERO loans.
Was 830 when I had a loan.
??????
If the person has $40K in unsecured debt and is not working, then he (I'll just use "he" for convenience) should talk to a bankruptcy attorney. Interest rates on credit cards shoot up when payments are in default. The penalty rates then hit 30+%, and he'll be unlikely to catch up. The job market in many parts of the US isn't as good as you might think, so even if he does get a new job, it might be part-time at $12/hour. That won't even make a dent in that $40K.
You can say, "But his credit will be ruined if he files bankruptcy!" News flash: if he can't make the payments, his credit is just as ruined. A bankruptcy won't hurt anything at that point.
You can say, "But his credit will be ruined if he files bankruptcy!" News flash: if he can't make the payments, his credit is just as ruined. A bankruptcy won't hurt anything at that point.
That's a great start.
Now add a column with the interest rate on each card. Make the minimum monthly payment on each card except for the one with the highest interest rate. Pay as much as you can on that one.
When that one's paid off, retire it and move onto the next one.
Try calling this place. It's a non profit to help consumers get out from under debt.
You also need some money management education so this does not happen again.
https://www.cccsofrochester.org/
You also need some money management education so this does not happen again.
https://www.cccsofrochester.org/
Do not work with those debt relief type of companies. All they do is let your credit cards charge off then they try to pay the balances for 50 percent of the charged off amount. It ruins your credit plus they get paid too. When a credit card charges off the interest stops however there is a lot of interest that accumulates before charge off which is usually around 180 days or 6 months of non payment. I would never let a credit card charge off especially if you ever want to buy a property. Only you can determine what is the best direction to get out of debt because nobody on this forum knows your situation. Sell anything you don't need and do not make the same mistakes again.
