Where to start to fight my debt
Date: Tue, 06/28/2005 - 06:33
We have close to $34,000 in credit debt and really have no idea where to go. Her score is much better than mine (640 vs 450), since I have concentrated more on her than mine.
One of my accounts has gone to collections. We were looking to buy a house and try to consolidate everything into one payment but the mortgage companies seem to just want to laugh.
It's caused so much fighting between us that I am beginning to think that I am fighting a losing battle with everything (money,her,etc).
Without a sales pitch, where do I (we) go from here?
Re: Where to start
[quote=rlg07734]These past 3 years (mainly the last one) have been very rough. My wife lost her job 3 years ago due to an injury and has not been able to find new work, nor will any doctor sign the papers for disability.
We have close to $34,000 in credit debt and really have no idea where to go. Her score is much better than mine (640 vs 450), since I have concentrated more on her than mine.
One of my accounts has gone to collections. We were looking to buy a house and try to consolidate everything into one payment but the mortgage companies seem to just want to laugh.
It's caused so much fighting between us that I am beginning to think that I am fighting a losing battle with everything (money,her,etc).
Without a sales pitch, where do I (we) go from here?[/quote]
First, I would like to assure you that no one on here would provide you with a sales pitch. If we offer you advice, you can be sure that we truly believe what we are saying. We do not earn any commission or any sales compensation for our suggestion. So, you can be sure of our impartiality.
I really feel for your situation because it is a difficult one that many Americans find themselves. First, I am concerned about this issue of your wife losing her job due to an injury. Did this injury occur at work? In some cases, you may be entitled to compensation by her employer.
Now, companies are getting stingy and they are limiting what type of injuries can be included in their workers compensation rules. So, if this is the case, I would suggest that you contact a lawyer that could work with that company to make sure that you are fully compensated for what you are entitled to.
If this injury did not occur at work and you are having difficulty finding a doctor to validate this, then you should find another doctor. As long as it takes. For me, I would not care how many doctors I would have to go through. Because if your doctor is unsympathetic to her claims and her feelings, that doctor is not very good in my estimation.
If she is not seriously injured, maybe she could seek employment where she could work from home. That may be an alternative that could provide you with the income that you seriously need.
Re: Where to start
[quote=benjaminz6][quote=rlg07734]These past 3 years (mainly the last one) have been very rough. My wife lost her job 3 years ago due to an injury and has not been able to find new work, nor will any doctor sign the papers for disability.
We have close to $34,000 in credit debt and really have no idea where to go. Her score is much better than mine (640 vs 450), since I have concentrated more on her than mine.
One of my accounts has gone to collections. We were looking to buy a house and try to consolidate everything into one payment but the mortgage companies seem to just want to laugh.
It's caused so much fighting between us that I am beginning to think that I am fighting a losing battle with everything (money,her,etc).
Without a sales pitch, where do I (we) go from here?[/quote]
First, I would like to assure you that no one on here would provide you with a sales pitch. If we offer you advice, you can be sure that we truly believe what we are saying. We do not earn any commission or any sales compensation for our suggestion. So, you can be sure of our impartiality.
I really feel for your situation because it is a difficult one that many Americans find themselves. First, I am concerned about this issue of your wife losing her job due to an injury. Did this injury occur at work? In some cases, you may be entitled to compensation by her employer.
Now, companies are getting stingy and they are limiting what type of injuries can be included in their workers compensation rules. So, if this is the case, I would suggest that you contact a lawyer that could work with that company to make sure that you are fully compensated for what you are entitled to.
If this injury did not occur at work and you are having difficulty finding a doctor to validate this, then you should find another doctor. As long as it takes. For me, I would not care how many doctors I would have to go through. Because if your doctor is unsympathetic to her claims and her feelings, that doctor is not very good in my estimation.
If she is not seriously injured, maybe she could seek employment where she could work from home. That may be an alternative that could provide you with the income that you seriously need.[/quote]
First, I would suggest that you clear the 34,000 dollar debt before you think about getting a new house and mortgage. Because, just from the creditors perspective, if you are having difficulty with the 34,000, how will they be able to trust you with a larger mortgage.
That may be why you are having difficulty obtaining a mortgage. They may see the large debt and the loss of one income source. They do not think that you could do it. But, you can prove to them that you are responsible with credit by recuperating your credit and clearing up all of those outstanding debts. That is the starting point that you should be looking at.
You should try to consolidate that debt because it is very large. I do not know if you would be able to receive a consolidation loan because of your credit score. But it is something that you should attempt to do. If you are not able to get a consolidation loan, you should look into consolidating without a loan. This form of consolidation serves to work with your creditors in order to reduce your interest and your monthly payments. This would definitely be significant benefit for you considering that this debt is large.
I would advise you against debt settlement because there are too many sham companies out there that are just interested in taking your money. Typically, we hear stories of people who have been scammed by these companies and are left to take care of the bills that the consolidation company was responsible for. So, that is why I suggest consolidation for you.
Both of you should remember that the vows were for rich or for poor. These money issues are very subversive and tend to get in between couples. I hope that you both will not allow this to completely ruin your marriage.
Hi rlg07734Welcome to the forums. I have read your post and
Hi rlg07734
Welcome to the forums. I have read your post and understand that your payment towards your debt will be the right solution to improve your credit score.
debt consolidation program has been successful in taking over the debts of the consumers and eradicating it within a stipulated period of time. You will earn large number of the scores after you have paid towards your debts.
When the credit score is evaluated, extensive research is conducted on the following areas of your credit report.
- Your payment history is analyzed.
- The amount that you owe is taken into consideration.
- Length of your credit history is determined.
- They look out for the types of credit that you have used so far.
- They will look into your new credit.
Once you reach end of your payments, be sure that your credit report is free from the following errors.
Check for incorrect entries - It is mandatory to check your credit report for any mistakes from all the three credit reporting agencies. You can review your report for at least once in a year as well as several months before you apply for a loan.
Timely payments It will be considered a very good practice if you always pay your bills on time. Your prompt payments will put you in a much comfortable position before you apply for a loan. This point is emphasized because a late or missed payment just before applying for a loan lowers the credit score and has worse impact than a missed payment five years ago.
Bring credit balance to the minimum - It is always beneficial to reduce the credit card balances as much as possible. The FICO scores get affected due to how much money you owe on some cards relative to your total credit limit. Credit scores are seen improving if the balances are kept below 25% of the credit card limit.
Don't linger your payments It is suggested not to increase the ratio by closing an account and transferring the remaining balance to another account since the ratio of the credit card balance is linked to the credit limit. Doing this will lower the credit score which should not be generally done while you are on your way to increase your credit score.
Unused accounts to be kept active - While you are applying for a loan, it is suggested not to close any unused account. At the same time, it is suggested not to open a new account also during that time. It is said because if you are having a short credit history or less number of accounts, the credit score gets lowered when a new account is opened as there is no proven track record of it.
Regards
Roxette
rlg077234,I have suggestions on debt consolidation programs.
rlg077234,
I have suggestions on debt consolidation programs. When I was in deep debt, I was scared to go to them because I've heard the horror stories. But you have to do your research. Find some that have positive references and can really help your situation and not hurt it. I used one company for the service. I had 12k in debt and they managed to help counsel me into lowering it dramatically.
[color=red][size=2][Link made inactive as per forum rules-Mike][/size][/color]
By the way Roxette, that was a great, helpful post. Thanks for that!
Sandra
[quote=roxette]Hi rlg07734
Welcome to the forums. I have read your post and understand that your payment towards your debt will be the right solution to improve your credit score.
debt consolidation program has been successful in taking over the debts of the consumers and eradicating it within a stipulated period of time. You will earn large number of the scores after you have paid towards your debts.
When the credit score is evaluated, extensive research is conducted on the following areas of your credit report.
- Your payment history is analyzed.
- The amount that you owe is taken into consideration.
- Length of your credit history is determined.
- They look out for the types of credit that you have used so far.
- They will look into your new credit.
Once you reach end of your payments, be sure that your credit report is free from the following errors.
Check for incorrect entries - It is mandatory to check your credit report for any mistakes from all the three credit reporting agencies. You can review your report for at least once in a year as well as several months before you apply for a loan.
Timely payments It will be considered a very good practice if you always pay your bills on time. Your prompt payments will put you in a much comfortable position before you apply for a loan. This point is emphasized because a late or missed payment just before applying for a loan lowers the credit score and has worse impact than a missed payment five years ago.
Bring credit balance to the minimum - It is always beneficial to reduce the credit card balances as much as possible. The FICO scores get affected due to how much money you owe on some cards relative to your total credit limit. Credit scores are seen improving if the balances are kept below 25% of the credit card limit.
Don't linger your payments It is suggested not to increase the ratio by closing an account and transferring the remaining balance to another account since the ratio of the credit card balance is linked to the credit limit. Doing this will lower the credit score which should not be generally done while you are on your way to increase your credit score.
Unused accounts to be kept active - While you are applying for a loan, it is suggested not to close any unused account. At the same time, it is suggested not to open a new account also during that time. It is said because if you are having a short credit history or less number of accounts, the credit score gets lowered when a new account is opened as there is no proven track record of it.
Regards
Roxette[/quote]
Sandra I have not heard debt consolidation programs hurting
Sandra
I have not heard debt consolidation programs hurting an individual profile. I have found this program to be of great help to the people in crisis. The objective of this program is to improve the credit file from the day an individual takes the responsibility to clear off the past debt.
A debt consolidation program works the best if you are able to keep a check on your finance. If you stick to a fixed budget each month, then you will be able to view the successful results within a shorter time. Otherwise, if you keep spending endlessly, it will seem like chasing a moving target.
Regards
Roxette
Sorry Mike, I didn't mean to break the forum rules - promise! I
Sorry Mike, I didn't mean to break the forum rules - promise! I surf the internet all the time and love to share sites, but I'll avoid it here. hehe. But just in case rlg077234 was still considering debt consolidation, I wanted to let him know of my experience with In Charge, which was a positive one.
I'll keep you in my thoughts, I hope you are able to beat the debt and continue to be debt free. :)
All the best,
Sandy
[quote="sandrac43"]rlg077234,
I have suggestions on debt consolidation programs. When I was in deep debt, I was scared to go to them because I've heard the horror stories. But you have to do your research. Find some that have positive references and can really help your situation and not hurt it. I used one company for the service. I had 12k in debt and they managed to help counsel me into lowering it dramatically.
[color=red][size=2][Link made inactive as per forum rules-Mike][/size][/color]
By the way Roxette, that was a great, helpful post. Thanks for that!
Sandra
>>
Hi Sandy We appreciate your postings in the forums. You can
Hi Sandy
We appreciate your postings in the forums. You can share your personal experiences while dealing with the financial companies for solving your debt related problems.
We know that you didn't break the rules of the forum intentionally. :D Also, we anticipate that you will stretch your helping arms for the community welfare. :D
Regards
Roxette