Ok here is my story.. I in 9 years just became past due for the first billing cycle. I have a total of 7 credit cards with a very high debt to ratio income. I owe aprox $55,000 on all and my score has fallin due to this. I am very sad that im now behind and possible not goin to be able to rebound as the min payments are high on all 7. Now im thinking if I let them go my credit will slide to prob around 500 mark and not be able to do anything from here nut file bk WHICH will kill me inside as well as for future things that i want such as a house. Can cash only REALLY help even if you have super poor credit? Most places ask for a credit card ie hotel, rent a car etc. What would you do in my shoes PLEASEEEEEE
we filed bk in feb 1997, we have paid cash for everything since then, had decided to stay away from credit at all costs. Well all it has gotten us at this point is no mortage and high interest on the one thing we did purchase on credit which was a vehicle. We have been trying for a couple of months and can not get a mortgage. THIS STINKS. Whatever you do make sure you keep some credit open, be it even one credit card. I wish our atty had told us that 7 years ago. If you can help it at all do not file the bk, if you can make the payments on the stuff you owe, make them, catch up, and it will work. Quit smoking, or eating out, or renting video's whatever it is that takes up that extra money, put it towards your bill to get it paid.
read the newbie threads. immediately before and after your bankruptcy pull your reports. first to make sure everything is included and subsequently so you can begin repair. the first thing i recommend you do is get a small secured card shortly after bankruptcy. that will help for those needs while you repair your credit. also, most companies don't necessarily require credit cards - debit cards are an option many times.
<< creditnomo says: Can cash only REALLY help even if you have super poor credit? Most places ask for a credit card i.e. hotel, rent a car etc. =================================================== >>Don't help one bit with the bilking you're getting on insurance and interest rates due to the poor credit. ><- <>- ><- <> ~~~ ><- <>- ><- <> ><- <>- ><- <> ~~~ ><- <>- ><- <> Never read the fine print. There ain't no way you're going to like it.
Well all it has gotten us at this point is no mortgage and high interest on the one thing we did purchase on credit which was a vehicle leeanninfl ======================== >> If you are paying for insurance it has probably gotten you overcharged on the premiums for that also.
You should have some credit. As was mentioned, you need it for things like hotels and rental cars. Someone else (jenz, I think) mentioned that you can use debit cards. This isn't always a good idea, unless you keep a significant balance in your account or have overdraft protection. You can pay for the car when you turn it in or the hotel when you check out with a debit card, but don't use it when you check out. They will put a hold on your account, sometimes for as long as two weeks. And when you check out, they put the charge through but often don't release the hold. This can cause your account to overdraft, even though the money may be there, because there is a hold against it. My husband learned this the hard way when a hotel put a $450 hold on his card for a two night stay, and wouldn't release it for two weeks. After the second bounced check, he begged them to release the hold as the bill had already processed, and they refused. Fortunately, the bank didn't return the checks, but they charged him overdraft fees of $27 per item. I think there were four by the time it was over, so it cost him almost as much to use a debit card as the weekend cost. When he asked the bank to remove the fees, they told him to read his agreements, that this is how debit cards work when you use them for reservations. I understand that some rental car companies won't even accept debit cards any more.
File for a chapter 7 bankruptcy. Start over with new cards they will be flooding your mail box after your discharge. You will be able to get a car loan but you will have a very high rate. Live with it. After a few years you'll be back in the game with established credit and will be able to join the rest of the world and enjoy the current interest rates. Life goes on Bk isn't a death sentence as one poster always says.
