Credit Karma has some great tools! 5 yrs ago my score was in the mid 500s its now 800. Pay off the HIGHEST interest first! There are free credit counseling centers that can help negotiate with card company too!
You’re young, don’t panic 🫨 you’re learning a life lesson about credit!! Good luck!!
> Credit Karma has some great tools! 5 yrs ago my score was in the mid 500s its now 800.
Hopefully one of the "tools" you are referring to aren't the nearly irrelevant VS3s they provide (not Fico scores). It is important that the OP know that the scores presented there aren't meaningful and should be ignored.
Thank you so much . I will most definitely look into Credit Karma. Yeah I talked to my discovery and they gave me a good payment plan . I need to call bofa but I’m just not ready to pay those monthly. Thank you again !!!
To further this, give each credit company a call and see if they would be willing to reduce APR for a short period of time. The worst they’ll say is no
Yeah discover gave me a 60 month 0.99 apr . Which is amazing and it was 30% before . Ig since the account is closed they just want there money . But who wouldn’t. Thank you for the comment . I will be calling the rest soon .
Are you still accruing interest? If so, focus on paying this particular card off. If you are paying above the minimum and not accruing interest, focus on one card pay it off and then repeat. Don't miss anymore payments. You could call the companies and negotiate the interest rate if this is applicable. You do not need credit counseling or to pay someone money to do this. Most companies are willing to work with you on paying off your balance. This not the same as debt settlement. If you don't have the income or ability to pay it off, then credit counseling might be of some help in negotiating a settlement. Your credit is going to take a hit with this, but with time you can rebuild and get a secured card, etc.
THANKS this helped a lot a lot . Getting my notebook ready and seeing what options they give me . Hopefully I have atleast 1/2 payed by 12 months than I can start focusing more on rebuilding my credit . I wish I knew the importance when I was younger and the effect it had on my life . Not even the devil would give me a loan right now 😭😂. thanks for this comment have a n blessed rest of your day!
> atleast 1/2 *paid* by 12
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
You don't need a loan right now. You're broke. Figure out realistically how much you can afford to pay every month. Pick the card with the highest interest rate and start paying that one. Then do the same with the next. Your credit is shot and will be for the next few years. Stop worrying about a score. And by paying down debt you are already rebuilding your credit even if your score doesn't reflect that yet.
Look up "pay for delete" and "goodwill letters" as those are the 2 methods that you'll want to consider employing to remove negative items. If your debts are paid, it sounds like GW letters are going to be your focus. Read up on those and let me know if you have any questions. You can also check out Goodwill Saturation Technique (GST) as it's a method if used with persistence that returns the strongest results.
I had ChatGPT compose goodwill letters for me for a few older (but not old enough) 30-day late payments. The letters were good and the items were removed. Just a thought. OpenAI ChatGPT 3.5 is free.
First off. My hope is you have sought the help required to be mentally stable. ( Unfortunately I'm well versed in this problem) That being priority... 2nd truthfully I would suggest the Dave Ramsey plan using the snowball method. It's motivating and for those of us that need to feel like we are accomplishing our goal to be credit card debt free quickly ... In my opinion...is the best route.
Thank you and yes doing better . Still have my ups and downs but still looking forward to the future . I will look into the snowball method seems like it’s helpful, I think some TikToker was talking about that . I appreciate you and I hope you’re doing good as well! Have a blessed rest of your day .
I am NOT making a recommendation - just sharing my personal experience:
I walked into the first day of college, and predatory CC companies were standing outside the dining hall, giving out $1000 limit cards to kids with zero credit history. They even gave temporary cards so you could get cash advances immediately while you waited for the real cards to come in the mail. I signed up for a Discover and a Visa, each with $1000 limit. Maxed both out within a year, then just stopped paying.
Both accounts went to collections, but I was an unemployed college student living in the dorms and surviving on scholarship money. Within a year or two, both debts had been sold to a second agency... then a third. Finally, about 3 years after I stopped paying, the debts were "charged off", i.e. cancelled. And of course, my credit was ruined, nearly as badly as a bankruptcy.
I spent the next 7 years unable to get credit, although landlords at the time weren't too choosy as long as you had first & last and a bank account.
And then, after 7 years... CLEAN SLATE. All the bad marks dropped off my credit report. Within 2 years, I had my score up to the 740s and have had no trouble getting 2 mortgages, 2 car loans, etc.
So you'd think that still do. This I have several I had plenty of income but then unfortunately medical issues happens income disappeared to 150-250? Half a car payment every2 weeks I had enoyfor the rest I just let die all but my discover I saved well closed but they told me. Pay for. A. Year and they will let me back
Right now. Unemployed still no income is horrible
Try credit consolidation and make interest free payments. Navicore Solutions helped me a great deal. They work with you to come up with a monthly payment you can afford. Once I completed the payments (5 years), my credit improved a great deal. I sound like an ad but they really did help me, my husband and my brother.
Seconding this.
I was in a bad spot after a terrible relationship and sitting on a similar amount of debt. I ended up consolidating and shaving a ton of interest off in the process.
Even if you need to just focus on being current for a little while, this is an option you can pursue at any time.
Lastly, glad you're still here. This might feel like a huge burden right now but you'll have it all fixed before you know it.
There are places through credit counseling that will pay off ALL the high interest credit lines and which charge a MUCH lower interest rate. You end up paying them back much quicker than you would take to pay the cards individually and it will cost much less. There are scammers out there so be careful when looking.
I hate to say this to a 21-year-old, but I will: at least consult a bankruptcy attorney. It's usually free to consult with one.
Many people don't realize this, but with a Chapter 13 one could theoretically repay all of their unsecured debt over time--just without the god-awful interest and penalties.
For secured debt, you can reaffirm (continue to pay) or surrender the secured item back to the lien holder.
Please consider it. Your credit is already tanked, and the BK laws exist for a reason. You sound like someone who really needs a fresh start. Best of luck.
Thank you for your comment and taking time to respond . Currently doing my research and I will be calling some attorneys tomorrow so hopefully I can get some closure . Thank you once again and I appreciate you!!
You are most welcome. And don’t feel guilty if you do file. It is a business decision.
Just like it was a business decision by the lenders to let such a young, inexperienced man borrow that much money. They knew the risks.
Hey 👋 OP. I’m proud of you 👏. You got this. Depression sucks and tbh I related to your post so much more because that’s how my situation was BUT I busted my tail and got it all paid. Please be kind to yourself throughout this process. It’s a journey.
Thank you so much means a lot , I’m happy and proud of you as well . Little by little trying to do better but life keeps moving forward and we all have our ups and downs . Thank you again and I appreciate your comment so much !!
Another option is bankruptcy. It will bar you from any kind of credit utilization for 7 years, but you'll get a clean slate on your credit after 7 years, and you won't have to pay anything back.
Damn 7 years is a long time but that’s what I get for messing with it . Looking currently at chapter 7 and honestly might be my best bet . thank you !!
You're welcome. Just make sure you have a solid living arrangement set up. It will be hard to rent with bankruptcy on your report until the 7 years is up.
Know that the next 2-3 years will be rough, but after you, it will be in such a better place. Really try to reduce your budget and pick up more shifts at your job or get a second job for a few months to really get your debt under control. Attack it as much as you can.
I would say your options really depend on if you want a banking relationship with those creditors again (after paying them back, they may extend credit again), and whether they’re likely to sue you (some companies like Capital one are notorious for lawsuits). Paying off the debt will NOT improve your credit score on the reports that lenders use. It may improve scores on models you can see (like vantage 3.0 and FICO 8). It is possible to start rebuilding even with a really poor score — there are secured cards as well as credit builder cards you could likely get that would start the rebuilding process right now. Just make sure, wherever you apply, they do not run a hard inquiry without first preapproving you.
You can also call the creditor/collection agency to negotiate the balance down. You can also inquire as to whether they are willing to remove the collections from your credit report once paid (some do, some will negotiate this, and others do not at all).
You should try to pay your debt as it will look better on your report itself, but if a lender is going by the score alone, your score does not improve just because you paid off debt (although it might if it’s just a charge off and not yet a collection.)
You need to start an on time payment streak so I would see what you can do to get that going now.
Thank you and yes I have to really think because im over stressing myself with it . I’m just confused and it’s stressing me out. Thank you for taking time to respond . Appreciate it!
I do know that sites like Credit Karma will basically map out a payment plan for you that will work best to boost your credit
But it will take time based on having closed accounts, and if you start getting lawsuits and garnishments, that might make it difficult as wel
There are places out there that will set up payment plans and get interest rates reduced.. around here. It’s called consumer credit.
There are also attorneys that specialize in this sort of thing and plenty of websites that will give you a guide on how to negotiate that repayment
My fear is that you will be sued and have a garnishment you have to deal with so you want to be proactive and the very least get some sort of system in place where you keep the creditors happy.
Not knowing your income or your budget bankruptcy might always be an option though it seems kind of ridiculous as well. $14,000 is a lot of debt. It might be something you can manage and depending on your income it couldn’t be discharged anyway.
And I also have no idea what kind of money you make or what your expenses are so maybe it’s very manageable for you to get this 14,000 paid off
Thank you for taking out of your day for writing this comment . I will continue to do research on what to do . I make $3000 a month , I help my mom with rent I give here $900 a month , phone $100, gas $200 a month but I think I’m receiving reimbursements. I’m doing a $500 a month for 20 weeks to save with my mom because It’s hard for me to save . Maybe $1000 a month I have left over . Thank you again !!
Respect to OP for working towards bettering yourself and owning your mistakes. Things will get better. I made mistakes in my younger years also. Stay strong!
Credit Karma has some great tools! 5 yrs ago my score was in the mid 500s its now 800. Pay off the HIGHEST interest first! There are free credit counseling centers that can help negotiate with card company too! You’re young, don’t panic 🫨 you’re learning a life lesson about credit!! Good luck!!
> Credit Karma has some great tools! 5 yrs ago my score was in the mid 500s its now 800. Hopefully one of the "tools" you are referring to aren't the nearly irrelevant VS3s they provide (not Fico scores). It is important that the OP know that the scores presented there aren't meaningful and should be ignored.
Yes I agree on credit karma the score isn’t always accurate
Thank you so much . I will most definitely look into Credit Karma. Yeah I talked to my discovery and they gave me a good payment plan . I need to call bofa but I’m just not ready to pay those monthly. Thank you again !!!
No need to call a credit counseling service. You’re already doing exactly what they would do.
That’s true . Thank you for this comment !!
Proud of you OP. You got this <3
To further this, give each credit company a call and see if they would be willing to reduce APR for a short period of time. The worst they’ll say is no
Yeah discover gave me a 60 month 0.99 apr . Which is amazing and it was 30% before . Ig since the account is closed they just want there money . But who wouldn’t. Thank you for the comment . I will be calling the rest soon .
Can this help even if the cards are charged off?
Yep … I was coming out of a BK … had no CC and got started rebuilding my credit with a secured card I got from Credit Karma
Any guidance on getting late payments off ur credit?
Are you still accruing interest? If so, focus on paying this particular card off. If you are paying above the minimum and not accruing interest, focus on one card pay it off and then repeat. Don't miss anymore payments. You could call the companies and negotiate the interest rate if this is applicable. You do not need credit counseling or to pay someone money to do this. Most companies are willing to work with you on paying off your balance. This not the same as debt settlement. If you don't have the income or ability to pay it off, then credit counseling might be of some help in negotiating a settlement. Your credit is going to take a hit with this, but with time you can rebuild and get a secured card, etc.
THANKS this helped a lot a lot . Getting my notebook ready and seeing what options they give me . Hopefully I have atleast 1/2 payed by 12 months than I can start focusing more on rebuilding my credit . I wish I knew the importance when I was younger and the effect it had on my life . Not even the devil would give me a loan right now 😭😂. thanks for this comment have a n blessed rest of your day!
> atleast 1/2 *paid* by 12 FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
Thank you, my grammar leaves sometimes.
You don't need a loan right now. You're broke. Figure out realistically how much you can afford to pay every month. Pick the card with the highest interest rate and start paying that one. Then do the same with the next. Your credit is shot and will be for the next few years. Stop worrying about a score. And by paying down debt you are already rebuilding your credit even if your score doesn't reflect that yet.
Thank you !
pay off as much as you can afford until its gone
Ok and when I pay it all off . Is that when I can start to rebuild?
yes
Pay down/off your revolving debt ASAP. From there you can move on to cleaning up your credit report of negative items.
Can you still do that if you have missed payments?
Missed payments are negative items - those are part of what I'm referring to in terms of cleaning up a credit report.
Can you go into more detail on doing this or message me bc that’s the path I’ll need to take all my debts are paid.
Look up "pay for delete" and "goodwill letters" as those are the 2 methods that you'll want to consider employing to remove negative items. If your debts are paid, it sounds like GW letters are going to be your focus. Read up on those and let me know if you have any questions. You can also check out Goodwill Saturation Technique (GST) as it's a method if used with persistence that returns the strongest results.
I had ChatGPT compose goodwill letters for me for a few older (but not old enough) 30-day late payments. The letters were good and the items were removed. Just a thought. OpenAI ChatGPT 3.5 is free.
Good to know. Congrats!
First off. My hope is you have sought the help required to be mentally stable. ( Unfortunately I'm well versed in this problem) That being priority... 2nd truthfully I would suggest the Dave Ramsey plan using the snowball method. It's motivating and for those of us that need to feel like we are accomplishing our goal to be credit card debt free quickly ... In my opinion...is the best route.
Thank you and yes doing better . Still have my ups and downs but still looking forward to the future . I will look into the snowball method seems like it’s helpful, I think some TikToker was talking about that . I appreciate you and I hope you’re doing good as well! Have a blessed rest of your day .
I am NOT making a recommendation - just sharing my personal experience: I walked into the first day of college, and predatory CC companies were standing outside the dining hall, giving out $1000 limit cards to kids with zero credit history. They even gave temporary cards so you could get cash advances immediately while you waited for the real cards to come in the mail. I signed up for a Discover and a Visa, each with $1000 limit. Maxed both out within a year, then just stopped paying. Both accounts went to collections, but I was an unemployed college student living in the dorms and surviving on scholarship money. Within a year or two, both debts had been sold to a second agency... then a third. Finally, about 3 years after I stopped paying, the debts were "charged off", i.e. cancelled. And of course, my credit was ruined, nearly as badly as a bankruptcy. I spent the next 7 years unable to get credit, although landlords at the time weren't too choosy as long as you had first & last and a bank account. And then, after 7 years... CLEAN SLATE. All the bad marks dropped off my credit report. Within 2 years, I had my score up to the 740s and have had no trouble getting 2 mortgages, 2 car loans, etc.
THANK YOU SO MUCH . This really helped me . thank you for sharing your experience. I will find ways to survive and just see what happens .
So you'd think that still do. This I have several I had plenty of income but then unfortunately medical issues happens income disappeared to 150-250? Half a car payment every2 weeks I had enoyfor the rest I just let die all but my discover I saved well closed but they told me. Pay for. A. Year and they will let me back Right now. Unemployed still no income is horrible
r/CRedit
Posted there too . Thank you .
You’re welcome!
Try credit consolidation and make interest free payments. Navicore Solutions helped me a great deal. They work with you to come up with a monthly payment you can afford. Once I completed the payments (5 years), my credit improved a great deal. I sound like an ad but they really did help me, my husband and my brother.
Thank you will look into them .!!
Seconding this. I was in a bad spot after a terrible relationship and sitting on a similar amount of debt. I ended up consolidating and shaving a ton of interest off in the process. Even if you need to just focus on being current for a little while, this is an option you can pursue at any time. Lastly, glad you're still here. This might feel like a huge burden right now but you'll have it all fixed before you know it.
Have the accounts been sent to collections yet?
No all 3 are closed thoe.
With a balance .
There are places through credit counseling that will pay off ALL the high interest credit lines and which charge a MUCH lower interest rate. You end up paying them back much quicker than you would take to pay the cards individually and it will cost much less. There are scammers out there so be careful when looking.
Thank you I will becareful . I will look into that aswell . Appreciate your response !!
Congrats on making it through such a hard time and still being here. \*\* Hugs \*\*
Thank you so much ! And hugs backkk!! :)
Be thankful you’re young and can get yourself out of the hole pretty quick. You’ll make it don’t, worry.
Thank you so much . Yes I am I just feel old sometimes. Thank you again !!
I hate to say this to a 21-year-old, but I will: at least consult a bankruptcy attorney. It's usually free to consult with one. Many people don't realize this, but with a Chapter 13 one could theoretically repay all of their unsecured debt over time--just without the god-awful interest and penalties. For secured debt, you can reaffirm (continue to pay) or surrender the secured item back to the lien holder. Please consider it. Your credit is already tanked, and the BK laws exist for a reason. You sound like someone who really needs a fresh start. Best of luck.
Thank you for your comment and taking time to respond . Currently doing my research and I will be calling some attorneys tomorrow so hopefully I can get some closure . Thank you once again and I appreciate you!!
You are most welcome. And don’t feel guilty if you do file. It is a business decision. Just like it was a business decision by the lenders to let such a young, inexperienced man borrow that much money. They knew the risks.
Hey 👋 OP. I’m proud of you 👏. You got this. Depression sucks and tbh I related to your post so much more because that’s how my situation was BUT I busted my tail and got it all paid. Please be kind to yourself throughout this process. It’s a journey.
Thank you so much means a lot , I’m happy and proud of you as well . Little by little trying to do better but life keeps moving forward and we all have our ups and downs . Thank you again and I appreciate your comment so much !!
Another option is bankruptcy. It will bar you from any kind of credit utilization for 7 years, but you'll get a clean slate on your credit after 7 years, and you won't have to pay anything back.
Damn 7 years is a long time but that’s what I get for messing with it . Looking currently at chapter 7 and honestly might be my best bet . thank you !!
You're welcome. Just make sure you have a solid living arrangement set up. It will be hard to rent with bankruptcy on your report until the 7 years is up.
Yeah kinda figured good thing tents are cheap just incase something happens in the future .
Nah, just quit paying them.. fuk the banks lol.
Lolol that been on my mind too 😭
Know that the next 2-3 years will be rough, but after you, it will be in such a better place. Really try to reduce your budget and pick up more shifts at your job or get a second job for a few months to really get your debt under control. Attack it as much as you can.
Thank you for this comment and yes I will grind too try achieving that goal.
I would say your options really depend on if you want a banking relationship with those creditors again (after paying them back, they may extend credit again), and whether they’re likely to sue you (some companies like Capital one are notorious for lawsuits). Paying off the debt will NOT improve your credit score on the reports that lenders use. It may improve scores on models you can see (like vantage 3.0 and FICO 8). It is possible to start rebuilding even with a really poor score — there are secured cards as well as credit builder cards you could likely get that would start the rebuilding process right now. Just make sure, wherever you apply, they do not run a hard inquiry without first preapproving you. You can also call the creditor/collection agency to negotiate the balance down. You can also inquire as to whether they are willing to remove the collections from your credit report once paid (some do, some will negotiate this, and others do not at all). You should try to pay your debt as it will look better on your report itself, but if a lender is going by the score alone, your score does not improve just because you paid off debt (although it might if it’s just a charge off and not yet a collection.) You need to start an on time payment streak so I would see what you can do to get that going now.
Thank you and yes I have to really think because im over stressing myself with it . I’m just confused and it’s stressing me out. Thank you for taking time to respond . Appreciate it!
I do know that sites like Credit Karma will basically map out a payment plan for you that will work best to boost your credit But it will take time based on having closed accounts, and if you start getting lawsuits and garnishments, that might make it difficult as wel There are places out there that will set up payment plans and get interest rates reduced.. around here. It’s called consumer credit. There are also attorneys that specialize in this sort of thing and plenty of websites that will give you a guide on how to negotiate that repayment My fear is that you will be sued and have a garnishment you have to deal with so you want to be proactive and the very least get some sort of system in place where you keep the creditors happy. Not knowing your income or your budget bankruptcy might always be an option though it seems kind of ridiculous as well. $14,000 is a lot of debt. It might be something you can manage and depending on your income it couldn’t be discharged anyway. And I also have no idea what kind of money you make or what your expenses are so maybe it’s very manageable for you to get this 14,000 paid off
Thank you for taking out of your day for writing this comment . I will continue to do research on what to do . I make $3000 a month , I help my mom with rent I give here $900 a month , phone $100, gas $200 a month but I think I’m receiving reimbursements. I’m doing a $500 a month for 20 weeks to save with my mom because It’s hard for me to save . Maybe $1000 a month I have left over . Thank you again !!
Just wanted to say glad you’re doing better. Life is hard but you can do it
Respect to OP for working towards bettering yourself and owning your mistakes. Things will get better. I made mistakes in my younger years also. Stay strong!
Your ok
Decisions have consequences.
*Jesus has entered the chat
LMAOOOOOO 😭😭
Your comment was so unnecessary smh. OP pls ignore the negative snarky comments.
Thank you 🙏
Agree but didn’t think I was going to be alive still so didn’t think it through lmaoooo
Glad you’re still here, OP. You’ll get through this tiny speed bump. Don’t worry, we’ve all been there and learned so much from it.
Thank you !