Oh boy..What have I done?..
Date: Sun, 05/03/2009 - 00:51
So here is my story.
I am 20 years old, married and have a one and 1/2 month old baby girl.
When I turned 18, I started receiving credit card offers in the mail and thought it would be awesome to get just ONE credit card for "emergencies." My first card was with Discover Card and it had a $900 credit line. So within the first 2 months, I maxxed out the card because of course, being young and naive, I spent it on stupid little things when I go shop and DINING OUT was the worst. OH! And don't forget that I am 20, and LOVE to shop. So I would come home with cosmetics, new clothes for my husband and myself...and the entire time, my husband was begging me to stop spending. He's not a spender and to have a wife that spends...oh boy. lol.
So I decided to get more credit cards with higher credit limits just in case I needed money, but of course ...now I am racking up over $10,000 dollars in personal debt.
I seriously had no idea WHY it has increased so fast. I now know why...IT'S BECAUSE I SPENT TOO MUCH.
Now, I am on maternity leave and not much income is coming in for my husband and I.
I feel awful for my daughter because I don't want to deprive of her anything she needs.
I have prayed to God and told Him I have learned this life's lesson and if I could get out of this, I will be MORE than willing to stop. MY first step tonight was to cut all credit cards. Good for me..
I just want this all to end. I was blinded by the "wealthy" lifestyle I thought I was living and now see reality for what it truly is.
So to the ones who are reading my post, I am currently looking for someone who can help me get out of this. I understand it will take time and patience and hard work, and I am ready for it. Bring it on. I'm ready to turn this lifestyle around and make it right for my family!
Please be careful when you spend. Always think twice.
Good luck and God Bless to you guys.
We're in it as a team.
Hello, I am new to the forums and I am also a parent. My dau
Hello,
I am new to the forums and I am also a parent. My daughter, she is currently 2.5 yrs old.
First and foremost, note that we are not alone. My story is somewhat similar to yours, however, mine was due to layoff and unemployment.
However, one of the things that I have done was to search for options, and here they are:
- Not paying the credit cards
- Paying the credit cards
- Debt Consolidation
- Debt Settlement
- Bankruptcy
Option 1: Not paying the credit card companies - To me it was not really an option (due to moral issues) and avoid garnishments, judgments, liens.... etc.
Option 2: Paying the credit card companies - The reality is that my income is not sufficient to pay them, that is why I looked for help in the first place.
This left me with 3 options (Debt Consolidation, Debt Settlement, Bankruptcy):
Bankruptcy - I have declared BK over 10 yrs ago and I can guarantee you that was not easy to do, specially now that many rules have changed. But you will have to go in front of a bankruptcy trustee, where many of the creditors will line up to collect and hear your case... in a few words you are in a court trial. (This is not an option for me, and I don't wish it for anyone)
Which leaves me to choose from (debt consolidation or debt settlement)
Although they both sound the same, debt settlement is by far much better than debt consolidation, here is why:
Debt consolidation will gather all of your debt and bundle all of the debt and charge you interest on your existing debt. Each month you will be paying one monthly payment to reduce the principal balance, plus interest, which part of such payment will be distributed among the creditors.
Debt settlement in the other hand, will negotiate with each creditor and will settle your debt for lesser than what you owe.
Here is how this translates in numbers:
Total debt: $20,000
# of Months: 48
Debt Consolidation payment : $516.91
Debt Settlement payment: $270.28 (This is my payment currently)
Total payment
Debt Consolidation: $516.91 X 48 = $24,811.68
Debt Settlement: $270.28 X 48 = $12,973.44
The bottom line is that numbers do not lie. It is only my preference, but I rather pay $12,973.44 than $24,811.68, specially for when banks are receiving financial help from the government that we all have and will be paying for.
A friend of mine referred me to a company called fedsco. Their website address is email deleted..pm They have great customer service and are extremely helpful. I have turned all of my financial debt to them and they are working wonders. There are some debts that were negotiated down to 20% of the total balance.
Keep in mind that 99% of the "debt settlement" companies offers you a program where you are required to pay for down payments. Don't pay them, it's against the law to charge for down payment money.
I wish you the best of luck on your decision
barbara- you are lucky you realized your issues before you real
barbara-
you are lucky you realized your issues before you really got in over your head..10000 is a drop in the bucket for unsecured debt..is it all with the same company? is it current? is it delinquent? let us help you by sharing more info..nothing personal like your identifying info...just more of the situation and you can become debt free like me...check out my thread below yours..i can help from experience..
