As I mentioned in my introduction, and as you should be able to guess from my user name, I'm broke. The collection agencies are starting to call, and I don't know what to tell them. I don't have any money, and I'm barely scraping enough together to pay my rent. What can I do? My debts are huge, and my income is almost non-existent.
This site seems pretty dead, but I'm hoping that somebody can give me some advice. Should I declare bankruptcy? (Don't you have to pay a lawyer to do that?) Does debt consolidation work? Do credit counselling services actually manage to lower your payments? It's gotten so bad that I have actually considered getting a new Social Security number like the Mexicans do and just hopping on a freight train to nowhere, starting a new life. (Yeah, I know that's illegal, but it's tempting since I know it can be done. Speaking Spanish, I could find my way to someone who can fix me up with a new identity which would give me a fresh start.)
Has anybody on this site been through a bankruptcy or debt consolidation scenario? I still have $15,000 in student loans and another $10,000 or so in credit card debt.
Suggestions?
freight train to nowhere sounds tempting
Something tells me it wouldn't be the wisest of the three options, though. I don't know much about this subject. I do know that student loans don't get wiped clean in bankruptcy, though. Sorry I can't be of more help. Maybe one of our lurkers will register and post a comment to help you, though.
I knew that.
About the student loans.
Man, you really need to get more people active here. Help is needed.
When you ain't got nothin', you got nothin' to lose - B. Dylan
You want to avoid bankruptcy
You want to avoid bankruptcy as much as possible. Its more expensive and depending on your situation may not get rid of as much debt as it used to. (thanks to our friends in D.C. who passed that slimy bankruptcy bill - where's the "corporate" bankruptcy bill... hmmm still waiting or did they just call their law a "bailout")
Anyways, try to get a list in order. Who is calling to collect from you? How far behind are you on each account? What are the balances?
Collect as much relevant information as you can and try to find some free (or low cost) government credit counseling assistance.
Call the student loan people right away (like NOW). They are usually the most lenient of lenders and you may be able to work out an extension with them.
Best of luck,
M
Thanks
I did get a reprieve on the student loans. Had no idea how easy that would be.
People keep telling me different things on bankruptcy. Some people say it's a good deal. Others say it ruins you for life. If I had a friggin' job I would pay it off and never borrow another dime. As things stand, it would be great to just wipe it clean. Somebody told me that the only thing that changed with the new bankruptcy law is that now they make you take classes or something.
Thanks again!
When you ain't got nothin', you got nothin' to lose - B. Dylan
I think bankruptcy can make sense...
... for people whose debts are truly overwhelming. $10,000 just doesn't seem like it would be worth ruining your credit over. A lot of potential employers and most landlords check your credit rating, and a bankruptcy could cost you dearly in terms of getting a decent job. I'm sure that once you land something, you can pay that off, especially now that you're used to material sacrifice.
The smartest thing I ever did was pay off all my debt. It takes a lot of stress off.
Good luck to you! You're gonna make it for sure!
Post new comment