Seeking "Sound" Advice on How to Recoup from Major Credit Mistakes

Hi S.,

At the risk of repeating what you've already gotten, follow Dave Ramsey's babysteps. No gimmicks, no schemes. Sounds like you're on the right track, since you acknowledge that quick fixes won't work. Follow this link to get started:
http://www.daveramsey.com/etc/cms/baby_steps_2867.htmlc?i...

good luck!

M.

Are you overwhelmed yet? I am in agreement with Dave Ramsey as well. 7 years ago I started the plan. It took us FIVE years to get out of debt. We went through a debt consolidation which he does not recommend, but we did it just before we found his plan. We quit using credit cards and were paying 1,500 a month for the entire five years, not to mention many medical issues etc... We got slapped on the hand here and there for late payments, but we've made it through! Its a long tough road with a lot of tough decisions and its hard. You can do it though. I love his "below the line" approach. It helped us tremendously. Best wishes! You will find a TON of support with a Financial Peace class.

Dave Ramsey's Financial Peace University is great. You could read his book, The Total Money Makeover, until you're able to get into a class.

Check out any book by Dave Ramsey

Have you heard of Dave Ramsey? Finincial Peace Univ. is what he does and it changed our life! I highly recommend it!!!

Yet another Dave Ramsey answer...Listen to the man! He's got a great book (Total Money Makeover) and Financial Peace University is also a good program. We read the book when we first got married and managed to pay off $20K in debt and still save up for a down payment on a house. It was tough, but we did it. Trying to get my parents on his program.
Dave Ramsey is on AM radio and he's got a show on Fox Business Channel. You can also download his free podcast from iTunes. Or check out his website www.daveramsey.com

Again kudos on Dave Ramsey! Also Crown Financial workshops of bible studies at church is a fabulous way to see money as GOD intended we do!

Also, not a fan of the credit card shuffle,... but if you have a Discover card, you might consider calling them and asking to upgrade your account. That you want a new card (check out their options online) and they will likely issue a brand new card (Account) with likely an offer of ZERO per cent interest for BALANCE TRANSFER for up to one year for a slight fee (Max of $75.00 is their traditional cost). Other credit cards charge 3% of the balance transfer, which can really add up. ONLY Transfer what you can make payments on! If you have 2k due on another credit card (at a higher interest rate) and transfer the balance you can make approx $190.00 per month payments at 0% ... you will have that amount paid off in 11 months! DON'T transfer more than you can pay off in the year, and don't pay late, and be SURE to have it paid in full BEFORE the invoice of the 12th month.
Msg me if you have questions. It is not get rich quick, but a useful tool.......

Dear S.,

Please check out Dave Ramsey courses. You can go to daveramsey.com and put in your zip code where it says something like "Lookin' for one of Dave's Classes?" It is a ten week course that really teaches very very sound financial advice. And, he makes it simple.
I just looked at his website, and I also noticed that he is speaking live in San Antonio on January 31. He not only has very sound advice, he is also very funny and entertaining. It would be worth getting a babysitter and driving down there, because he would "inspire" you to work hard to get out of debt and start saving!
He also comes on the radio. Here in Austin he is on FM at 98.5 or 99.3 at 3 pm to 4 pm.
This guy really "cares" about people. I promise you'll like him.
I took his course and loved it.
J.

Another "Dave Ramsey" answer (I think he will be here in San Antonio live this weekend?)

S., my best advice to is to read Dave Ramseys Total money Make-over. My husband and I are following this plan and have our heads above water for the first time ever. We even attended his siminar this past weekend. It is the best thing I have ever done for my family. You will be glad you did it. Call his radio show or contact him online and see what he has to say specifically. He is glad to help. He has been there and He understands.

Oh we have the perfect advice for you but it is definitely not a quick fix but more of a crock pot fix. It is a lifestyle change that will not only help you to feel better about your situation but about your family and marriage (finances can have a way with our relationships). I suggest you look up a nearby location for the Dave Ramsey Financial Peace University class at http://www.daveramsey.com/

We have been on his program now for 2 and a half years and I will tell you it is not easy to begin with but just knowing you have a plan helps out tremendously! My husband and I are now on the same page with finances and we make our budgeting decisions together. We hold eachother accountable ... in a positive way.

I'd never used a budget before in my life and now I can't seem to live without it! It's wonderful. It's my guide ... I'm not married to it but it is a good guide. You're presending your money first rather than spending it first and then trying to figure out where it went and how to catch up.

My husband went reluctantly but is now Dave Ramsey's biggest fan! He evangelizes his program to everyone we meet! You're not alone out there! I strongly encourage you to look into this program!

Sincerely,
A. Meadows

Hey S.,

I would recommend you and your husband reading "Total Money Makeover" by Dave Ramsey. My husband, who does not particularly like to read, read this book in three days. I then, read it and we have been focused together on taking steps to get out of debt and build financial security for ourselves. The book is easy to read and very practical. We have loaned our book to several people since then and now have friends who are also working towards the same goal. The book talks about repairing credit and getting out of debt. Dave Ramsey also does a radio program on 950 AM from 12:00-2:00pm. He has the best advice that I have come accross. I hope this helps.

A.
www.InvestingInMyKids.com

I have to give all these ladie kudo's. Dave Ramsey is awesome! His advice is wonderful and practical. I would steer away from the places like Consumer Credit Counseling Services because you pay more to them each month than you do to the actual place that you owe. We were gonna try that one time until they told us our payment would be $150/mo and that only $75 of that was going to be spread out to the 12 creditors that we had breathing down our necks. the rest went into the pocket of the "non-profit" organization. That was too nuts for us! I think you just have to set a budget and start slowly but surly digging yourself out of the hole. Good luck and God Bless!!

D.
http://www.formyrugrats.com

S.,

I'm in the same boat but I beleive I found a solution. Look up www.daveramsey.com

I went to his live seminar this last weekend and it really made sense. It is not a quick fix but it will give you a plan and a place to head. There are some churches in the woodlands that will be having a university class. It will be on his site to get the information.

My sister & brother n law started 5 years ago to get their credit straight. Their debt was approximately $300,000 and that didn't include the mortgage, so pretty scary number. In 5 years though they have paid more than 3/4 of all of their bills and now their credit score is fantastic.

I'm now on the program and really excited about it even though my debt is nothing that scary. If I can help in any way, please email me directly at ____@____.com

All the best

i used a legitimate credit repair company (recommended by a mortgage broker) until we were unable to afford it anymore. it's veracity credit consultants. i don't have their info handy, but you can google it. they did get things that i disputed off both my and my husbands credit report. it's a slow process, but if you've ever tried you know that we as a "lay person" can't get it done while they can. good luck!

Hi S.,
Are you familiar with Dave Ramsey and Financial Peace University? If not you should check him out...his is a practical, common sense approach that teaches how to get out of debt and stay out of debt. But there is so much more that you learn through the course...and it's "sound" advice. My husband and I are currently facilitating an FPU class, we both feel very strongly about how it's changed our lives and want to help others experience financial peace too!

www.daveramsey.com

Hope this helps!
L.

Hi S.,
I agree check out daveramsey.com he has really helped our family get back on track.

Listen to Dave Ramsy on the 950 AM. Seriously. I think he's coming to Houston soon, & he has great books out there. just listen, it's free radio. Good Luck, we all go through this, fighting it ourselves as well.

Slow and steady wins the race. It looks like you 'know' what to do with out knowing you do. : ) There is a great guy who does a money show in Houston on AM radio and he's fab, I would listen to him or grab one of his books and go from there. Dave Ramsey I think. Without reading a book the plan is this: make a budget, trim excess, pay off debt, live free!

Good luck!

You will probably say "You are kidding" but trust me this is the best sound advise I can give. Many years ago (maybe 20 - 25 years ago) we lived like many others using credit cards etc. then I got a divorce and got saddled with half the debt. I continued using credit cards as I was a now a single parent trying to raise two girls and of course not wanting to totally change our lifestyle.I was barely making it living pay check to pay check. Then I met my current husband who told me that the best advise he could give me was to cut up my credit cards and learn to live off paying cash. If I couldn't afford it then I didn't need it and if it was something I truly wanted like a large ticket item then I would set aside money each payday until I could afford that big ticket item. I just couldn't imagine not having credit cards but I did give it a try. He did suggest I keep one credit card with no balance for any type of emergency and I was not to use that card for anything other than that. I contacted all my creditors and worked out with them on paying them all off. It took a few years but I finally got them paid off and one day I owed no one. I have been paying cash ever since and you would be amazed out how much money you really have. All my money was going to paying interest on all that debt. We have never suffered since and of course I ended up marrying my husband and to this day we still pay cash. Of course we had the house payment and occassionally a car payment but those were the only things we allowed ourselves to have credit on. Again it is amazing how much money we do have when it is not all going to everyone else. Through the years we made more money with our jobs and eventually it was so nice to pay for that airline ticket without having to charge it and pay for it for a year, go and buy clothing without having to charge it and pay for them for years. Of course I might have had to spend $100 vs. $200 or more on a credit card but that was OK. We never suffered for anything and today I am retired and I owe no one anything. I strongly urge you to try this. Also if you have a 401K plan with your jobs make sure you contribute to it. It is always available in case of a true emergency. I always took money out of it as a loan vs. cash and had the payment taken out of my paycheck so I would replenish the money and not lose it for the future. I know things are not making a lot of money right now but I truly believe things will turn around plus you are still making something on it. Good Luck to you. It is hard at first but just stick with it and you will be glad you did.

S.,

Financial Peace is awesome. Dave Ramsey is a genious when it comes to repairing bad habits. Remember this: If you keep doing what you've always done, you will keep getting what you've always gotten. It's time to change your habits. It will be hard (that's why they're called habits) but with the right tools you can do it!

i'd like to know what you find out too!!

Dave Ramsey offers really great financial advice. Google him for more info.

Definitely get copies of all three credit reports. You can get those free, once every 12 months. Talk to your creditors to see if they are willing to work out a payment plan with you. Sometimes the deals they are able to work out are very beneficial but there was a time in my life that what they came up with didn't help at all. Here is what worked for me...pay off cards with the smallest amount owed, first. Lots of people say to pay off the one with the smallest interest rate, but that didn't work for me. Pay as much as you can on the one with the smallest amount due and pay minimum on your others until the first one is paid off. Then, take what you were paying on the first and add it to the minimum you've been paying on the next smallest amount due while continuing to pay the minimum on the others. As you pay off each card, you'll add the total amount you were paying for that card (which is progressively larger with each one) onto the minimum you've been paying on the next so by the time you get to the larger balances, you're paying much more than minimum and the smaller amounts are out of the way. Good luck. I had to do this after my divorce and it is so hard, but so worth it.

Dave Ramsey, Dave Ramsey, Dave Ramsey! It won't be easy, but his program is common sense and it works. My husband and I took his Financial Peace University almost a year ago at our church. We didn't even have any debt, but needed to get grounded about our spending and saving habits. We now have a budget that we live by and know what we are going to spend our money on before the month begins. If we don't have it, we don't spend it. This will definitely help you fix your mistakes and learn how to avoid making future ones. Take the Financial Peace University if you can. Many churches offer it. I highly recommend it. It may sound expensive (I think we paid around $120 for materials, etc.), but some churches have scholarships if you can't afford to do it and I will guarantee that it is worth every penny. You will get that back ten fold if you take this program seriously and work it. Good luck to you and I'm sorry for the situation that you're in. It will get better!

Marie and others are 100% right about Dave Ramsey. He is a multimillionaire who rebuilt his wealth WITHOUT credit. (yes I said without credit and his FICA score is 0).

His seminar and books are responsible for getting us out of $75000+ of debt in less thant 3 years. We are now debt free except for our house! I highly recommend his advice.

You can catch his show every night on the Fox Business News channel, and he also is on talk radio every day (early afternoon 11-2 I think).

Find out more here www.daveramsey.com.

Good luck!

Listen to Dave Ramsey ( sp ?) on the am radio. He gives sound advice. He promotes his book alot but I never bought it. He really cares as he was in the same boat at one time. Basically no shopping for clothes, eating out, pay off all your debt is your main goal and no purchaces like computers phones and if you can get rid of a phone do so. Basically live life like your broke and have no money. Also dont do credit go ahead and cut those cards up. He has a budget that you make and save money and pay off debt. Congrats on making this choice and soon you should be able to say your debt free!

I would also suggest Dave Ramsey's materials. He has a website called daveramsey.com where you can find out about his Financial Peace University Classes in your area. It's also worth listening to his radio shows so you get an idea of how he operates. I took his classes and followed his advice when I was going through a divorce nearly four years ago. I was able to pay off my five-year loan in one year, getting myself completely out of debt except for my mortgage. And even that should be finished several years early.

Another site I've come to enjoy is called thesimpledollar.com. Lots of interesting financial info from a young man who nearly lost everything and made a complete turnaround in his life.

I second the Dave Ramsey advice. My husband and I bought the book, "The Total Money Makeover" and it has absolutely revolutionized our life and finances. We have now gotten all credit debt paid including cars and are working on paying off our house in only 2 1/2 years of marriage. It is not a get rich quick scheme it is like Weight Watchers for debt, and it really works. There are seven baby steps outlined in the book and you just focus on the step you are on so it really helps you not feel totally overwhelmed. It teaches you a new approach to money and how to live debt free and stay debt free. The average couple that works the system can expect to be totally debt free including the house in about 7 years. That number can vary a couple years either way depeding on your financial condition when you start, but we are trying really hard to hit that 7 year mark and are blown away by what we have accomplished the last 2 years. If you would like you can also catch Dave's radio show on 950 AM, I think it comes on at noon, or check out his website at daveramsey.com. I really encourage you to take a look at his approach, learning how to get free from the strangle hold of consumer debt is so life changing! I know I am going on and on but I am just so passionate about this because I know what it feels like to be burdened by tons of debt. Best wishes and hang in there!!

I will tell you what I did. My husband worked for a company that ran out of money and I had to support our family for a time. My credit score was in the low 500's. We went to a credit couselor called credit restore. They are very reputable. Everything is on the up and up and they help you know what to do to increase your scores quicker than just slowly paying off one thing at a time. They coach you and contact the agencies on your behalf. After 6 months, my scores are in the upper 600's and one agency has my score at 749. Putting your cards in a drawer and never using them will not increase your scores. The agencies want to see you use your credit, but use it wisely. Credit restore is in Houston and they are very helpful. They do charge a fee, but it is worth every dime. I have lived it, I know.

Yes, 3rd vote for on the Dave Ramsey books or DaveRamsey.com to find a trained counselor in your area who can help. No schemes with Dave---it's all common sense, but it's the things we forget when we are stressed.

You can probably find him on a local radio station---it's 550 AM in San Antonio, or can play back the days show from the internet.

Once your household situation is on the upswing, you can get books or programs for your kids so that they don't repeat those mistakes in their futures.

Oprah had a great show the other day with - I think her name is orman. She was talking about getting out of debt and had great tips on paying your bills and getting your credit back on track. I think it was Jan 8th. You might be able to find it on her website.

Talked about putting your credit cards in order from the highest interest to lowest. Paying all the credit cards on time but putting an extra amount towards the first card. Then when that gets paid off you take the monthly amount and the extra amount that you were paying on the first card and apply it to the second card along with the monthly payment of the second card. and so on. She said that once you pay off these cards do not close them out. They will continue to report good credit and will raise your fica score.

You need to speak with CCCS. This is a FREE organization that has helped millions of Americans work out of their debt with counseling and cooperation of your credit card companies. http://www.consolidatedcredit.org/

Notice they ARE a .org... There is no fee for them to help you, but they will make arrangements with the credit card companies to sometimes lower your payments and lower the interest rates, sometimes, the credit companies will even get rid of the interest just to get the payment. You will be asked to cut up all of your credit cards and you will not be able to apply for new ones until you pay off your debts. They will also help you make out a budget and help you learn to better manage your finances. All of this is free. This is not a scam. You will both be asked to attend counseling classes on how to budget, how to save money and how to make the payments to pay off all of your debt.

You can do this. It is not too late. It will also help lessen much of the stress you are feeling right now.

S.--sorry I have not answered sooner but I wanted to see if I could shorten this up for you. What I am going to tell you I have been thru and it does take time--no qucik fixes so do not give up in doing the right thing becuase it will pay off for you in big dividends. My credit score in 2000 was around 430(could have been lower)I could not buy /or do anything and my interest on credit cards had sored out of control. Today 2009 it is 783 in all 3 reportings. I rewmember the 3 years we ate out once a week at our church for $3.00 each on Wed nights--never want that aagain.
Not really knowing your situation I just jump in--

You must stop charging--contact everyone you are having a problem with and tell them of you intentions to get right-stay in contact. This is the hardest thing because you have to be humble --some of them will be darn right rude. Pay the min or more every month-do not get behind. Pay off the lowest balance first, while paying the min on the rest-then when you get one paid off that that amount apply it to the next lowers balance( like doubling up). This is tricky because when we pay one off we fill like we have arrived and want to get out to eat or something--you can not do it. It is a process and I pray you will be able to complete this because today credit is everthing--you can not do or buy without good credit. The world has changed and accountablilty is everything.

If I can be of any other help--please do not hesitate--I can not stress the importance of your credit score.

God bless you as you take on the daunting task.

pick one bill at a time and pay it completely off, make minimal payments on all others. Once it is paid off, move on to the next. Start with the smaller bills so that when you get to the bigger bills it doesn't take too long because you will have more money to put towards them will the littler bills out of the way.

Good luck and godspeed... ;-)

I am using Prime America Financial. They are not a debt consolidation, but a financial advisor. They do anuities/retirement plans and some insurance but for free he looks at what you have and sets up a financial plan. He looked at the life/term policies to see if he can get you a better policy. If it is good, he will flat out say don't change this. They advise, you make the decisions. Setting up a plan to payoff debt was very helpful in getting back financial control. Jeff Spurlock is who I work with on my finances. His number is ###-###-####. He is very tactful, respectful, and honest.

only a couple of hints here .. . (by the way I was once in the same spot and now am over 800 average score, we all make credit mistakes at some point or another - just learn from it and you will be fine) . . .

1. Always on time. . . that means everything from the electric bill, to the rent, to the credit card . . . it might just be the minumum payment, but not one hour late.

2. Pick one card/bill at a time (the experts say the smallest balance - I went with the highest interest %) and put every extra penny towards payment on that one card until it is paid off, then move to the next card/bill.

3. This one is a little harder, but talk to the companies that you owe. . . ask them for help. Even if they will only lower your interest by one percent, it will help in the long run.

4. (some experts will disagree with this one) Consolidate. . . take advantage of those lower percentage "switch/transfer" offers that are usually on your statement. But if you are going to do this, then make sure to read all the fine print. . don't want to get stuck with $250 in fees in order to move a $1000 balance that would have cost you $100 in interest over the life of the payments . . . When I did it, I used the offer with a max fee of $50 (or $75) and if I could pay it off, 0.00% interest for a set period of time, if not then Low until balance paid. Also, be wary of the home equity solutions for consolidation -- if you end up in the same situation later, or have a major emergency, you have no where to turn.

5. Most important . . . don't add to anything. Even if it means cutting your hubby and kids hair yourself, or walking everywhere on the weekends, or ???. If you don't have the money in your checking account, don't spend it.

They all sound like simple things, but together they work - -or at least did for me.

Good Luck!

I was going to say what Bill C said. Especially about paying everything on time and focusing any extra on the smallest balance. Among other things, it helps keep you motivated to actually get to pay stuff off!

Good luck!

You could try going to your bank and see if they offer a debt consolidation loan. They'll run your credit and ask you what you want to take care of and then they'll see if you qualify for a loan. If so, they'll pay the debt and you just pay back the bank.

A.

Morning S.;

There are NO Quick Fixes!!! It takes time to dig one self out of a financial hole! I know that's not what you wanted to hear!
You and your husband have to sit down and establish a budget! Yeah, I know, nasty word! But, it is the only way to get started! Each of you have to agree on every single penny and where it is going!
Here is a simple budget:
#1 Food (a) under this remember to include both your lunches and the kids lunches when they are at school or Baby sitter
#2 Rent
#3 Utilities (Electricity, Water, telephone, cell phones)
Now we're down to paying debts!
Compile a list of each debt, all credit cards and their
totals, what day they are due and what is the min payment.
Now list them in order of amount owed, putting the smallest
amount on the top!
Here is where you will start to dwindle the debt, you want
to pay off that smallest one first, so if possible instead of paying the min on this one, you want to put extra into it's payment! As soon as this one is paid off you move on to the next smallest.
It may take you 3 to 5 years to get out of debt, since you didn't say how much you are in the hole or your salaries I can't tell you much more!
Sticking to a budget is hard>>>but, never having any money is worse! Think about it like this: You have been blessed with two great children, a working husband and a decent job yourself! So gee wiz, what's so hard about going on a budget and working yourselves out of the hole you dug! It's a ladder and it takes one step at a time!
By the way, by starting to make all payments on time, your credit will actually correct it's self if three years!
Good Luck;
B. C.

S., my husband and I are going to get started with Credit Solutions.. They are like a credit consolidator, but seem to have a better reputation. The local Dallas NBC station did a short news clip suggesting to use them to consolidate debt. However, if you google it, all you will read is negative comments.. We are in such high debt right now, there is nothing else we can do.. Check them out... good luck.. J

Hi S.,
Wow, this is a really tough one. My expertise in this field is 25+ years in the Mortgage Credit area- so here is what I would suggest.
First- add up all your debts-
2nd. determine what you and hubby can pay towards retiring these debts on a monthly basis.........
Put these things in priority : Put back a small amount for your self-even 10 or 15 dollars a payday in savings will help- then pay rent or mortgage if applicable (or contribute to your current household situation) 2nd. pay utilities 3rd. food for family 4th all other bills- ie car pmt etc- credit cards are last- but be sure you cut them up ........I would keep one credit card for emergency use only-
then- call all creditors- negotiate a payment agreement with them- something you can live with other than the monthly amount- sometimes they will reduce the balance and/or interest and close the accounts. make these payments on time for the length of time of agreement..........do not make any new debt until these obligations are paid off-

Do not make any new purchases unless absolutely necessary- You can do this on your own- but if you feel you do not have the courage to stick with the plan you can go to one of these debt counselors- sometimes they can help- for a fee- but often you can accomplish the same thing without paying that fee.

If you or hubby are eligible for overtime or bonuses- apply all that to retire the debts.
good luck and blessings
This is really a tough one but you can be successful with determination and hard work.

get a copy of your credit report from all three companies. See what information is on them. Some times if you have you name listed differently(like Joan B. Doe, Joan Bertha Doe and Joan Doe) they can actually mark it against you. If you see something like that right to the companies and tell them that it is a mistake. Dispute as much of that info as you can. If you are listed as having too many addresses,or too many names, they can count it against you.
Also, take any extra income you have and pay down your cards. You can cut expenses like cable, dining out, and stuff like that. Use that money to pay off your cards as soon as you can.
I know that it seems like a big black hole but you can get out of it.
Good Luck
K.

Hi S., If we can't help you with a loan consolidation, we are always looking for people that want to make some extra money (part-time).It's financial services with Primerica. You don't need experience, we will train you.This company pays real good. You choose your own hours. If interested, please call me. My name is K.,###-###-####.I work out of a Corpus Christi office.If not interested, good luck, K.

One thing I was told was to get a credit card and charge a little something each month on it and pay it off every month. Cancel and pay off all the other cards so you just have the one. If you want your credit effected then it needs to be in your name only. When I got married my credit was not great and my husbands was amazing. 9 years later and my credit score is almost as high as his!

My husband is a really good source to ask any questions you may have about improving your credit. He used to own a non-profit Hud approved credit counseling agency and helped so many with their loan modifications, home buying, and credit problems. Currently he is a licensed mortgage broker as well as a credit repair agent for a company called Financial Education Services. You can simply call him or email him if you like about any questions you may have. He's really knowledgeable and super helpful and kind. He loves to help people :)

Here is his contact information:
____@____.com
###-###-####

His name is AJ

Best of luck to you!

S. -
You made the first step, admitting.
Second, pay cash from here forward..and leave only 1 credit card open for usage....if you can't pay cash, you do not need! Third, call credit card companies and ask for lower rate..or go online and shop card rates and TRANSFER balances..this will help on min. payment amounts.
Just a few helpful hints to get you going!

I am in the mortgage business and the WORST advice is to be a part of CCCS. I know they come in on a white horse to save the day, but if you can handle the debt on your own...do it. Last resort, CCCS. CCCS really hurts your credit! Best of luck and and now you have TWO jobs...yipee! LOL!

The only tried and true advice is to pay your bills on time, every single time, including utility and medical. And don't take out anymore loans. The only time that another loan is a good idea is an equity loan to pay off ALL of your bills, but that loan has to paid on time, every single time. It's hard, but within a year you should see a great improvement, I did.
Good luck!

Hi S.:)) My name is Jess (J.)...My hubby and I live in Kingwood...so I guess we are neighbors:))

Both hubby (Jim) and I are retired...We have 6 kids and 14 grandies...I am 61 and Jim is 68....He is a retired "geek" and I am retired from Fed Govt...SSA claims rep of 35 yrs.

I had to file bankruptcy several years ago as the credit card debt, etc got to where I barely had money for the basics:(( This was prior to marriage to Jim ..we have been married since 1997)...

On my lawyer's advise.....she works with a bank in Houston..American Bank (i think) that issued me a credit card with a very low limit. I would charge a couple of items and pay balance off every month...and slowly it rebuilt my credit.

I am not saying that you should go this route.....but talking with a financial advisor, etc can give you some idea of how you can rebuild your credit...and start anew.

I am here if you want to email me...about anything...I am a very good sounding board....I never judge anyone ...the past is the past...and the future begins now:)))

If you could send your emails to me at: ____@____.com

Send you a hug:)

Hugs
Jess

Debt consolidation is always and option. As a REALTOR - my suggestion is to stop putting anything on the cards. Pay cash for everything. Figure out how much you owe total, and how much you can afford to pay a month to pay on them. From there your best option is to pay the one with the highest intrest rate off first, put half of what you have to pay them on that and then divide the rest amongst the others. From there, once the first one is paid off then start on the next one - same plan. The other thing you can do is call each company explain the situation and then see if you can get the inrest relieved or reduced.

Hubby and I did this just before he got out of the military. We were applying for a home loan and we wanted to get the best rate possible.

First, pull your credit report from all three credit reporting agencies. Then go through and find out who you owe, and how much you owe. Start off paying the smallest bills. Once you do that, your credit score will automatically start going up. If you have credit cards, stop using them and start paying them off. Do not pay only the minimum. Even if you can pay only $10 more, you'll pay them down faster.

One other thing, worry about everything but utility and medical bills first. Once you've paid those all off, then pay off utility bills, then medical bills. This will increase your credit rate quicker as utility bills and medical bills weigh less on your credit rating (assuming an actual person is evaluating your credit report for credit worthiness.)

Good luck!

first of all, get a free credit report. you are allowed to get one every year. then look at it and pick one or more that you can afford to pay off call the credit company and talk to them. say you are working on your credit and you would like to make payments. it doesn't have to be the full amt, try to settle for half the amt it will look the same on the credit report it will say settled in good standing and it helps. i was told to pay off all the credit and then throw all the cards in the drawer and never touch them again, but keeping them open is better than having numerous closed accounts. this is a good start to good credit. hope this helps.....