Advice Please?

hbarcus · #1 (**permalink**) 05-20-2007, 12:02 AM

Well I can give you a quick rundown of where I am. I am 19 years old and already 4k USD in debt. I got kicked out of my house when I was 17 and just really ran myself into a hole. I have horrible credit now and noone to turn to so a little advice would be great. I considered getting a loan to help get my debts straightened out since now I would be able to pay them off with my job but with it being so many debts its hard to save the money to get them all paid off. Does anyone know anywhere or anyhow for me to get a loan of ~ 5-6k USD with bad credit? I cannot find a co-signer. If not do you have any advice on what some other options would be. I really want to get these paid off before the baby comes along.

Mynion · #2 (**permalink**) 05-21-2007, 09:54 AM

#1 Stop using the credit cards. #2 Get a 2nd job. #3 Sell some stuff on Ebay. #4 Reduce your expenses, any way you can. Go without cable TV if you have to.

Shifting credit card debt to a high-interest personal loan will not solve your problem. In fact, sometimes even shifting credit card debt (unsecured) to a 2nd mortgage/home equity line (secured) may be a bad idea.

Don't put money in a 401k, even if you are getting a company match, until you pay off your debt. The interest on the debt is most likely higher than any rate of return you can earn in your 401k.

Just some ideas.

tater03 · #3 (**permalink**) 05-21-2007, 06:28 PM

I would have to say if at all possible get a second job and use this job just for paying off your debts. We did this and you would be surprised how fast you can pay it off even if you only work a few days a week at the second job.

Behnam1123 · #4 (**permalink**) 07-09-2007, 04:18 PM

I like Mynion's answer. You have to take extreme measures if you want extreme results (in others words, gettin out of debt). Do not spend where you do not need to. Sell things you do not need for now (remeber, you can buy these things later in life), and get a good job!

Hope this helps

magic301 · #5 (**permalink**) 07-11-2007, 12:34 PM

i think borrowing to pay off another debt is like digging yourself deeper into the hole considering that your credit rating is not good, you're not gonna get good rates anywhere. its best to look into debt consolidation with your current creditors.

katharina · #6 (**permalink**) 07-26-2007, 05:59 PM

Quote:

Originally Posted by Behnam1123

I like Mynion's answer. You have to take extreme measures if you want extreme results (in others words, gettin out of debt). Do not spend where you do not need to. Sell things you do not need for now (remeber, you can buy these things later in life), and get a good job!

I have to agree with the others. Getting a loan to pay off debt... nah, that doesn't work. There are probably some things that you could go without for a while, yes? For me, if I'd have to do this, it would be our weekly stop for lunch out on Saturdays and the cable bill that just went up AGAIN and is nearly $50. Right there I'd save $50 on the cable and about $20 a week on that lunch stop = $80... so $130 on those two things alone.

Do you smoke? Pick up soft drink and chips every day? Grab fast food for dinner every night? Those are the type of things that add up. Good luck with this!

Sponsors