Hi guys Im new here so I guess I should introduce my self. Im 26 years old and have struggled with credit for the last 5 years since I screwed up at 19. I was starting to come out of my rutt and actually financed a car 2 years ago only to lose my job and have to give the car up. I was at a 630 credit score and now back to a 502 with a reposetion on my history. I have a total debt of 16k and only make like 2500 a month take home. Im having a hard enough time keeping up with rent and taking care of my family. My fiance and I have a combined income of around 5k but at the end of every month seem to not have any extra cash. We dont impulse shop or anything. Maybe I need help budgeting or something. So guys what should I do. This is the first time I've ever talked about my problem with anyone and this is because Im getting older now and seriously need to get my finances in check. Andrew
5K a month is reasonably good income. That is about 4k a month over poverty level and families earning at or just above the poverty level do survive and some of them fairly well. The national average weekly paycheck is $784. Based on 4.33 weeks per month that comes to $3178 per month. Two people earning that per month comes to $6356 per month. You are only $1356 per month below what the national average is for two wage earners. How many families are there that earn that much? Not all that many indeed. I'd say you need to do some serious budgeting.
I agree with Cap but it has to be a joint effort for it to work (budget) and admitting it is the first step. I too am in the same boat. This will be the year that I get things under control and improve my scores.
I wouldn't recommend BK with only 16k total delinquent debt. I would also stray away from CCCS at all costs along those same lines. Anything in the 500's in terms of FICO's scores can be worked with and there are most likely certain tradelines which can be removed. The first step is to dispute anything on your reports which appear inaccurate and/or incomplete. Items that may be over 7 years of age should be disputed as well. Thereafter, what ever remains should be addressed via payment or an escalated means of removal. The above is merely a cursory summation but, the general protocal nonetheless.
Thank you for the professional response. Please define a CCCS. Also what are escalated means of removal? Examples please... If I can get my body back into shap I know I can get my credit and spending in check...
cccs=consumer credit counseling service,I would definitely stay far away from bankruptcy,I'm 4k in debt and make 9.50 an hour all I have to do is get a second job.My family said I should file for bankruptcy.Try and stay focused on paying yourself and family first,read debtor's anonymus.Right now banks are making a killing off late fees and overlimit,the collection biz is a 100 billion a year industry.You want everything in writing pay for deletes are great.Obtain 3 reports go to annualcreditreport to get yours free.You have to be aggresive with dealing with collection agency.I would dispute any inaccurate information,You have to think of credit like your body usually when people start seeing a difference is when you'll notice a difference.Patience is key and paying down high interest cards first is important.I've always known how important credit is but I feel being a good negotiator is equally important.I know people with great credit who get robbed at the used car lot.Anyway good luck,If you use cccs that will go on your report I believe.
CCCS is Consumer Credit Counseling Services. Essentially, they are wing of many creditors and their notations on credit reports equate to what amounts to little more than a bankruptcy notation. An escalated means of deletion would denote some fashion of administrative or judicial complaint; i.e., they verify inaccurate information, you institute a civil action.
