I am so depressed - I have such bad credit

My2Beauties wrote: This totally sucks. My freshman year of college I got some credit cards and was doing really well. Well they kept raising my limits and lowering my APR and all that good stuff they do to college students and of course (the shopaholic I am) kept spending and spending and then I got laid off and couldn't pay them anymore. So since then it's been an ongoing battle to pay these suckers off. Well I am trying to get a loan through my credit union (a personal loan) since I had my first car loan through them before my credit got bad and paid it off, well they want a co-signer. My DF's aunt said she would do it but she just babysits (her credit is excellent like a score of 790 something) but they won't do it because she has no job (just does babysitting on the side), then mom said she would and they won't accept her because her score isn't high enough, they won't let DF because he just got a personal loan through them to pay off medical bills and he hasn't even paid his first payment on it yet so he doesn't show payment history really on anything yet...this just sucks! I am so depressed, i can't afford to pay these things off by themselves and I dont want to do debt consolidation because I heard those places are hard to deal with and they make your credit look almost just as bad as bankruptcy!!! I make the money to pay on a $5000 loan it's just a matter of getting the credit to get one...BOO HOO!

kimberley replied: sorry you are going through a rough time. i am in my own financial hell too. even when i was working they wouldn't give me a loan because i am a bartender and make $6/hr on paper but in actuality with tips it is more like $24/hr. hope you find something that works.

TeagansMom609 replied: My credit is horrible too. As bad as it gets I think. When I was 18 I went crazy with credit cards. I paid for me and my friends to go out ALL the time. I felt like it was free money. Well goes to show that just because your 18 and considered an "adult" it doesnt make you responsible. I know I wasnt. Boy do I regret that now. Most of my credit card company's wrote off my debt and I cant even pay them off now if I wanted to. It really sucks when you try to buy a car. I dont even know how we will ever be able to buy a house! I think more people out there have bad credit then good, so how do they get houses?!

bucky replied: heh... I'm in the same boat as you... I found one solution though, there's a place in my town called Consumer Credit Counselors of Rochester that don't damage credit and aren't a loan agency. What they did was put all my debt together, I gave them my budget, what I could afford, and they arranged a payment plan with my creditors. The good thing is that 99% of creditors work with them.

http://www.cccsroch.org/ - might want to give them a call, theres a 800#, they might be able to refer you to someplace like that wherever you live.

mama3x replied: I do know how you are feeling...the only diff between your debt and mine is the fact mine resulted from divorce.

I just filed for bankruptcy this Summer and it went through this month. You MIGHT want to consider this if things get really impossible since bankruptcy doesn't carry the terrible stigma it used to.

Much luck to you.

kit_kats_mom replied: As a former collection manager/debt counselor at a credit union let me say that I totally understand your situation and I know how hard it can be to get out of debt. We are also struggling with debt incurred during our student years but have been fortunate to be able to make the payments even though it's been a struggle.

I would reccomend going ahead and contacting a credit counseling service. Do not pay for their services because the best one's do not require any payment from you, they get their money from the companies that you do business with. trust me, any company would rather be paid 7% less on your balance than nothing at all. Yes, it may effect your credit rating but honestly, from a lending perspective, I'd rather see that you joined and completed a credit counseling program than just let the bills get further and further behind.

Generally, the counseling service will have you fill out a detailed budget then they will meet with you to determine how much you have available to pay on your revolving (credit card) balances. Then they will require you to close all of your credit accounts. Then they contact your lenders and ask for reduced apr (generally about 5%) and a waiver of all late fees and they ask for the minimum payment that the company will accept. they will then take your, say $200 per month that you pay directly to them...ON TIME!...and distribute it to the highest rate card first then the lower rate ones until the debt is paid off.

The biggest problem with these companies is that I have rarely seen anyone complete the program. The ones who do, do great but often, something happens and they stop paying. That really ticks off the creditors and many will go back and up the APR and calculate interest on the past balance so that you really get hit hard. That often drives people into bankruptcy.

The other option you have is to contact the creditors yourself and see if you can get them to lower the APR & maybe waive any past late fees. If you are very honest with them, they will usually help. Again, they want to get paid something and will take a bit of a loss on thier profit to get back at least the amount loaned.

Good luck. I know how hard it can be.

Kirstenmumof3 replied: DH and I just went through this last year! The credit card companies just kept increasing the limit, too the point where we couldn't afford to pay the mimimum balance! We eventually had to remortgage our house for the full term again and consolidate all of our credit card debt! I would look into a consolidation company and see if they are able to help you!

Josie83 replied: That's so scary, I'm so sorry that you're having such a hard time. I hope you find a solution to your problem soon. Credit cards scare the heck out of me, we have one for emergencies only . . . and I am not allowed my paws on it, Jason keeps it. Good luck xx

amynicole21 replied: My sister went through a consumer credit counseling service and just paid off her $30K of debt last year! She has bought a car and a home since. It is DEFINITELY something to look into - far better than falling behind on your payments!

My2Beauties replied: You guys just don't know how much better you made me feel. I didn't realize that so many people are in the same boat that I am, I guess I thought I was the only one out there with not so good credit. Thanks for the tips, especially you Kits Kats Mom, that really helps to see it from a lender's perspective. I have been in touch with a credit counseling/debt consolidation place and I have an appointment over the phone with a woman on Thursday evening (a night that I have where I can sit down and go over all my bills with her). Which this is what I will do since I can't get the loan, I would have just rather had the loan because if I could have paid off the debt right here and now with a loan the creditor's were going to settle for half the balance in some cases whereas if I go through debt consolidation/credit counseling I have to pay on the whole entire debt So that pretty much doubles my debt! My creditors wrote the stuff off to but sold it to other collection agencies who are hounding me now and this whole thing will be such a weight lifted off my shoulder once I get them paid!!! Wish me luck guys, I have one last plea with my credit union today and then if they still don't let me have the loan then I am going through that debt counseling program I guess

kit_kats_mom replied:
Good luck at the credit union. They are there to be able to help their members so hopefully they will be able to get the loan for you. They do not have the same laws that govern the banks about lending...trust me...we gave some loans to people who had the worst credit ever, mainly because they had a plan and a need and had been long time members.

FYI, if you do end up joining Consumer Credit Counseling Service (that's the one I'd reccomend since I've delt with them the most), the collectors should stop calling. Most times they will bring the loan current so you won't still be showing past due. Keep in mind again, that if you ever miss a payment, be prepared to feel the wrath of the collection agencies. They can get pretty ticked off when an agreement is broken.

One other tip, do a search on the "Fair debt collection practices act" online. As a consumer, you have rights that were enacted in the early 70's that protect you from abusive practices from collectors. For example, they are not allowed to call you, only communicate by letter, if you request it in writing. They also can't call your job if you write them and request that they do not & there is a detailed description of "harassment" and if any of them are going over the bounds, you only have to mention the law to them and they will generally step back. It's much easier to abuse a debtor who doesn't know their rights.

A&A'smommy replied: Good luck with it (i'm sorry I didn't see this before) I hope you get it paid off soon!

My2Beauties replied:
I spoke to the Credit Union this morning and they're not gonna give me the loan Buttholes Oh well! The lady at the credit union told me not to do the Credit COunseling because it looks just as bad as bankruptcy and before I do anything else (like trying to buy a home or car or anything) that I have to get their permission first since I"m on their plan I don't know I think I am just going to pay these cards off one by one and let them wait until I can pay them all! I'm not gonna let it bother me anymore! I can't let little things like this get me down!