When I turned 18, I made the grave mistake of applying for credit cards. I was so naive that I charged like no tomorrow. Now, over a year later, I find myself in financial debt. I owe about 4 K to the credit card companies (I also owe a few more grand to student loans, but I won%26#039;t have to pay for those until after I graduate college). I know 4,000 doesn%26#039;t sound too monumental in comparison to those owing 20 or 30 K, but for a college kid with a barely minimum wage job, it%26#039;s a lot. Between 4 cards, I charged them all and STUPIDLY was unable to pay the bill each month, so eventually, they all went to debt collection agencies. I have since cut up all of my cards. I%26#039;ve saved up about 1,000 from working in the summer, and am currently working.
What is the best way to handle this situation? Should I pay off an entire card and then slowly pay off another? Which card is more %26quot;important%26quot; to pay off? This is so confusing I am contemplating contacting a debt management company. Should I? HELP!
Advice for a young student with credit card debt?
Pay off the one with the highest interest rate first. Interest can kill, sometimes that accounts for more than half of the debt in the end. Or, if you have one with a low balance that would be easier to pay off that would be good, too because it would stop all future interest on that card.
We could recommend a more detailed plan if we knew how much was on each card and the APR for each.
In order to rebuild your credit, I would cut up all but the card with the lowest APR (request a replacement due to damages if you%26#039;ve already cut it up) and request that the limit be kept at the minimum possible. This way you won%26#039;t be able to charge extravagant amounts and you can start rebuilding your credit today.
Advice for a young student with credit card debt?
Cancel the card right away. Work and pay it off asap! You don%26#039;t want Uncle Sam to ask for your life later on down the road! Fix it and don%26#039;t let it happen again! Credit card? NO. Debit card? YES. At least you have the money in the bank already.
Advice for a young student with credit card debt?
This is kind of bad advice, but . . .
transfer all balances to one card.
Then pay twice the minimum each month before it is due.
Give the card to your Mom or Dad and do not use it.
If you get it paid down and are timely your credit will be repaired and you%26#039;ll look good.
At 4K that is probably about 200 lucky bucks a month.
I hope you can afford that and your problem will be solved but ...
you went into collection so getting another card may be impossible.
Advice for a young student with credit card debt?
You have credit card debt, and you wan to pay it off as quickly as you can. We will assume that you are going to stop creating more debt. You have changed your ways. You also understand that paying credit card%26lt;!--balances with a consolidation loan or rolling it into a mortgage isn%26#039;t paying it off. In fact, paying a lower interest rate, but paying on the debt for many more years, usually means paying much more, not less.Okay, so you really want to be rid of that credit card debt.
http://bestcreditcards.freehostia.com/Cr...
First, you have to understand that not all debt is the same. Of course you know this. Some of your cards have a higher interest rate than others.Find and budget the money to start paying down those balances. If you order pizza every week, for example, you may be spending $60 or $80 per month right there--%26gt;If you are serious about getting those debts paid, you may have to eat $4 frozen pizzas for now. Do what you have to do, and determine how much you can apply towards the debt each month.
Advice for a young student with credit card debt?
I recommend using that $1,000 you saved up to settle your accounts that are in collections. Right now the damage is already done to your credit history, so trying to salvage that is not as important at this point in time as is getting the debt settled. I would contact each collection agency (via certified mail, return receipt requested) and negotiate a settlement. You could start with 25% of the balance owed, and then negotiate from there.
In the sources section I have listed a link to an excellent credit resource site, CreditInfoCenter.com. I have specifically linked to the Debt Settling section. Read it over and use the advice to get these accounts settled.
Advice for a young student with credit card debt?
Go for debt relief programme.
There are many debt consolidation compnies offering such service. You can apply online also.
http://debt-relief-free.blogspot.com/
Advice for a young student with credit card debt?
Jeremy has a real good idea. to expand, i would start by calling each debtor and see what you can settle for. there are a couple different ways you can get started on getting your credit repaired. And I am assuming that it%26#039;s too shoddy right now to try to buy out each creditor on one card and make payments toward that card. if you can find 2 of the 4 debtors willing to be paid off with your $1,000, say one will settle for 400 and the other for 600 that would be a good way to start. or if one settles for 800 and another for 500 go ahead and pay off the 800 and put 200 toward the 500 and see if you can start making payment arrangement. Jeremy left some links you should really look in to that I don%26#039;t know much about.
trust me , when you get a little older and want to buy a car , or house , your credit is gonna be the most precious thing you have. really its as precious as family and friends almost, and personal health
Advice for a young student with credit card debt?
Hello! I Got This For You. As Always, It%26#039;s Always Better That You Get The Info Firsthand. So Better Check It Out Yourself, Im sure You%26#039;ll Discover Something...http://creditcard.expertips.info/america...
Advice for a young student with credit card debt?
check out http://ceditdebtrepair.info they should be able to help you. good luck!
Advice for a young student with credit card debt?
Consolidation is the best solution available to the credit cardholders to improve their future credit. People go for debt consolidation for many reasons: prolonging the loan period from 5 - 15 years and reducing the interest rate. Consolidation allows you to go for a loan with lower interest rate than the one you are currently paying. Besides it simplifies the loan repayment as you are paying only one lender in place of various payments to different lenders.
Advice for a young student with credit card debt?
Hi,
I used %26quot;Credit Solution%26quot; to settle my debt and improve my credit score .They managed to reduce my debt up to 58%.It%26#039;s legitimate.I came across this company on NBC News Special Edition.Check it out here:
http://urltea.com/31vc
Advice for a young student with credit card debt?
I think the advice should be given before your application...
There is no mistake for student to apply a credit card. But you should choose the card carefully!
For a student, would get a low interest credit card to get less debt. Don%26#039;t pursue the .It%26#039;s not the most important thing of a credit card for student.
Now I think you should to find a job to earn some money, and payback your debt.This is the best way. Don%26#039;t think about another credit card, it%26#039;s just a hole!
If someone need to get a student credit card, you should choose from here.
http://www.applybestcreditcard.cn/
Advice for a young student with credit card debt?
Hey, you are not alone. The majority of the American population is in some sort of credit debt. We all tend to live above our means and the credit cards, especially when you%26#039;re only 18, appear to be free money. I suggest tackling one card at a time or consolidating all if possible. pay off cards with highest interest rate first. Check out this site for more help:
http://www.credit-card-loans-debt.com/cr...
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