unsecured and secured debt

I have about $8000 in debt. Most of it is credit card debt. $800 is for the irs, and I have about $800 owed to cell phone companies. $1500 is to a finance company. I have a balance on my car of about $5700, but I did not include that in the $8000. I really hate to file bankruptcy because I won't to buy a house within 4 years. However, i use nearly all my income to live off of. Any suggestions?

What sort of suggestions you're actually looking for? there can be plenty, but without knowing the exact nature of your problem, they're not worth putting forward.

If you hate to file bk, then you can look for the debt settlement program. This is a rigorous form of debt management program and can help you to pay-off your debts within a period of 12 to 36 months, depending on your performance.

the bankruptcy can stop the creditors from calling you repeatedly day-in and day-out, but will not actually earn you the relief from your debts. Moreover, the secured creditors can manage a 'relief from stay' and can continue with the collection process.

This site offers a free financial consultation, which I think may help you in your situation. Check it out.

Listen to TWEETY. This forum ahs alot of good advice ( financial advice..) and other people who can help you in the 'right' direction. If you're confused on Secured and Un-secured debt ( and i was for a long time) here's alittle advice. Unsecured debt: credit cards, signature loans, etc. Secured debt; car loans, house loans ( something that you are using for collateral FOR the loan). I mean, if you have a car financed somewhere, you are using your car for collateral FOR that loan. Hope this helps a little.

I don't think I would go for Bankruptcy with that amount of debt, but that will have to be your choice.

You cannot file bankruptcy on the IRS, but they are really good about making payment plans.


Are the cc debts with the original creditor or with CA? If they are with the OC, you can try to get on their hardship program, where they will lower or drop the interest so you can get current with payments. You can start with your lowest balance cc and pay extra on it until it's paid off, then you can use that payment and add it to the next one, and so on.

There is also debt consolidation, debt settlement, and a Do it Yourself section here.

Feel free to ask questions, we are here to help..karen

Most of my creditors are willing to stop all fees and drop my apr to 0% so that any payments go directly towards the balance. However, First Premier said that they couldn't take off any fees, but I don't believe that. With the cell phone bills, are they able to be settled?

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I fully agree with Bossy that your debt does not look that bad to think about bankruptcy. You should explore different debt solutions other than bankruptcy and then decide which one suits you.
debt management Plan may be a good proposition for you as it will not affect your credit report adversely after you payoff your debt. But in case of bankruptcy, it will damage your credit report for a period of 7 to 10 years.

It is my belief that we should try to pay-off IRS debt as early as possible. I consider it as a priority. Regarding IRS you should first find out the information regarding tax return and the claims of IRS. Please don’t ignore any of their letters because it will not go away with the passage of time and will only become worse.

Hi,

I do think that you need debt counseling from the experts of our community. You can avail this Free Counseling service by filling up a 5 line form.

Bye

It is hard to say what you really need, but lets begin with your credit card debt, is it current or delinquent?

If it is current call oyur creditors and negotiate to have them lower your interest rates down. If it is delinquent, find a dmp that will not place you further into debt by charging fees up front.

Are the cell phone bills current or delinquent? If current, cancel all accounts and stop accumulating more fees if delinquent same as above.

The money owed to the finance company has to be paid bask, only thing that you can ask is to re work your loan and extend the pay back period therefore incurring more interest on the loan.

Your car loan must be paid back or it will be repossessed, once this happens you can negotiate on the outstanding balance.

My advise is cut out all hte extra spending such as cell phones, this money will help in other places, create a tight budget, call up your creditors and negotiate lower interest rates, re work your loan structure and stay up on your car paynebts. Ask oyur friends and family for help, there is still hope!