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I need A LOT of help

Date: Thu, 01/25/2007 - 22:58

Submitted by billyh072883
on Thu, 01/25/2007 - 22:58

Posts: 11 Credits: [Donate]

Total Replies: 2


Heres my story and it is long so please bear with me. Im 23 and currently am in between jobs. Ill start at the beginning. 2 years ago I got a car loan for 10k, i owe 6k on it now. I have several credit cards-4. The balances are 3k, 750, 750, 500.y car payment, 3k credit card, and bank account(over drawn) are all at the same bank. got car insurance (missed 2 months), cell phone (payment due yesterday, its been cut off twice already). Everything was going good for me I was paying everything on time and working my way out of debt. I was doing real good. Was about to buy a house with my brother. Then I was run over by an ex with her Lexus. I was in the hospital for a month with brain hemorrhaging. I still had a job when I got out, but couldn't work due to dizziness (painter). After a couple months I realized that I wouldn't be ready for a while to go back to work painting, so I started searching. I found a good job now but have to pass tests and things to start (not important).
While I was out of work 4 months I missed a lot of payments. I just missed one car payments last month and am about to miss another this month. I have creditor calling literally 10-15 times a day. I know after I start working that I should be fine. But what should I do now. Should I consolidate my credit cards. My credit is already f'd cause of this. What can i tell these people to get them to stop calling. I am going to start working next week hopefully if I pass this test on Monday. I just need some advice on what to do. I feel like its all starting to really take its toll on me.


Wow, I guess she didn't take the break-up well. I'm sorry to hear about the situation.

The main debt you need to take care of right now is your car payment. (The others will make phone calls but there's not much they can do to you, and suing you would be 2-3 years away.) As I understand, it seems like you are running into 30 days past-due on the car with the 2nd payment coming due. In the scheme of things, that is not horribly delinquent ... they don't usually start looking to repo it until it is over 60 days past-due.

I would suggest calling the finance company, and ask them if you can do a one- or two-month extension. What an extension is, is they make you pay the accrued interest and maybe a flat $25-50 fee to extend the contract by one or two months - then they take the payment(s) you owed and move it to the end of the loan. I would think if you can show them hospital papers/doctor's notes, then they would be willing to do an extension for you.

The fact that you have a car, credit card and checking account at the same bank does not mean much. Their security interest on your car only applies to the car note ... meaning, they cannot take your car for having a negative bank account or past-due credit card.

Once you get your car note straightened out, then try taking care of the credit cards. The problem is, if those are 3-4 months past-due then they simply want money now. To try and setup some sort of payment plan may work but they will probably want your first payment immediately, which it doesn't sound like you will be able to do for a couple months. I would say it doesn't hurt to call and ask them, they may give you a couple weeks to setup a payment plan.

Hang in there, it's not the end of the world. I wish you luck on this new job, and if you have any other questions, we'll be here.


lrhall41

Submitted by DebtCruncher on Fri, 01/26/2007 - 05:28

( Posts: 2293 | Credits: )


The advice given above is very good. Give most preference to your car payments first. Call your credit card companies for some payment arrangements. If they are willing to work, it's going to be ok. Otherwise, take professional help. The counselor will negotiate with your creditors for a lower pay off. If you cannot afford the payments set in the consolidation plan, debt settlement will be the next suitable option. Your credit is already tarnished by now. Once you are able to pay off some of the debts, your credit will start shaping good.


lrhall41

Submitted by onelamb on Fri, 01/26/2007 - 10:53

( Posts: 433 | Credits: )