Bleak
Yay - another Friday is upon us. It's going to be a low key weekend for me because I totally mis-managed my money this week - I hate it when I do that. Getting paid every other week totally sucks. Living paycheck to paycheck sucks even more. I need to learn how to save.
When I was applying for this job, I had to go on like 4 job interviews and take a few tests and I was up against like 50 other people. I didn't think I had a shot in hell of getting this job. I sort of made this little deal in my head with god - I was like "dear god - if I get this job (and the subsequent raise that comes along with this job) - I promise I'll go to a debt consolidation place and get my debt in order. There are a few credit cards that I'm just not paying on at all. My credit is shot and I had a car repossessed too. Not good. So, I've been at this job six months now and I still haven't done the debt consolidation thing. I did do one good thing. I joined the 401 K program. They match up to 3% here and I put 5% in. It's the only step I've taken in securing a future for myself.
Okay, enough about my bleak financial situation.
So, at any rate. Does anyone have any positive experiences with debt consolidation? Does anyone have any suggestions for me? I'm just looking for a legitimate place to go that will really help me get my finances in order and start paying back my bill collectors.
Thanks for all the excellent feedback - I decided to go to the poker party at my boss's house. And then, I got to work this morning and they decided to re-schedule it because only 7 people could make it and they wanted more people. So, I guess it all worked out :) I'm having dinner with the girls at Gordon Biersch. Has anyone ever eaten there? Yes, they have more than beer - they have food apparently too.
posted by CarmenSinCity at
Friday, March 28, 2008
14 Comments:
Gordon Biersch is the yummies. We went there after a conference a few years ago.
March 28, 2008
Been to GB in San Jose and they indeed also had some nice food.
Good to see that your choice of parties resolved itself, enjoy your dinner.
March 28, 2008
hey! Happy Friday to you!! I am also glad your parties worked out!! I mismanage money also!! My parents r working it out, and teaching me how to work it!!!
Shalom
March 28, 2008
Debt consolidation is a great idea, but debt reduction is something that you can do for yourself.
If you call the collectors and negotiate, you can pay as little as 40% or so of what you owe.
They buy your debt for a fraction of that, so anything you can pay to them will still be a profit.
I haven't heard anything good about companies that do consolidation.
March 28, 2008
I am on debt consolidation right now and it's awesome. I don't stress about all the bills and only have to pay one electronic payment once a month. They cut the interest rates to real low and I've already paid off quite a bit of it. It does lower your credit score but it's better than going bankrupt. The only thing is, is that they are strict. If you don't have the money in your account one time they will take you off their plan and you will have to claim bankruptcy. But overall - it's way better and I don't stress about money as much. I use MMI - I think it Money Management Inc?? Not sure. Good luck!!
March 28, 2008
Step one is reduce the 401k to the match if not eliminate altogether. The debt you have will kill you if not eliminated. That money going to retirement would do much better going towards those credit cards as you retirement funds will not be earning at least 18% (at least highly doubtful they will).
March 28, 2008
Just make sure you go with an honest debt consolidation place. Some of them are pretty shady.
Maybe do a little online research and see if any of them have been sued lately or if the state has taken any of them to court. Also, check the yellow pages for FREE debt counseling programs runs by the state. There might be a couple and they could give you good advice on who is honest and who isn't.
March 28, 2008
GB is pretty ok for a brewery type place.
March 28, 2008
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March 29, 2008
Using Credit Cards to consolidate debt: With this method and a good credit rating, you may get a much lower rate than other forms of consolidation loans, since credit card issuers do not require collateral, you are not risking your home on a secured loan. Phone your card issuer and ask what interest rates they will offer you if you transfer your other credit card balances over to theirs. Go for a fixed rate if possible, and request then to waiver any transfer fees. If you can not negotiate a lower rate with your present issuer, shop around for a new card, but be careful as too man applications for credit in a short period of time can damage your credit rating. Once you have consolidated in this way, ensure you establish an optimal payment plan so you can be debt free in three to five years.
http://www.1st-debtconsolidation.co.uk
March 29, 2008
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March 30, 2008
While I'd normally agree with calling the credit card companies (and anyone else you owe) first, it might not be for you.
I'd look for a good accountant if I was you, and find someone who will force you to be better with your money.
You're putting off dealing with this, don't pay your credit cards (just about the worst interest rates in the world), are over-contributing to your 401k, and going out for dinners, hitting malls, etc., when you're deeply in debt. You need a kick in the arse.
So maybe debt consolidation is the way to go, simply because they're strict and you won't get away with skipping payments. That or you need to make a concerted effort to turn things around. You have the means to get debt-free and fix your credit, don't put it off until its too late. The only thing untended debt does is grow.
March 31, 2008
I did Consumer Credit Counseling Services and it worked out well. The only problem I had was even while I was in the program, I was still 1 month behind with my creditors due to unmatched billing cycles. To clear this up, I sent each of them a minimum amount check outside of the CCCS payment system. I know my counseling service frowns upon this but it straightened out as soon as I did.
You should not be paying the credit counseling service so much that you are hurting your payments to the creditors.
If you are not behind on a car payment, you can usually get 1 or 2 months of "skipped" payments if you ask them in advance. You will still be accumulating interest, but I would guess your auto loan is a lower APR than credit cards. You can then use the car payment to help catch up on other payments.
I also agree with STB. Reduce your 401K contributions until you can manage your short term debt.
March 31, 2008
Unless you're buying a house, I'd just default on it all. Screw these credit card companies for basically enslaving people. You can also make deals directly with the companies. Such as "Hey, freeze my interest or I will go bankrupt/default".
April 01, 2008
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