- Joined
- 8 Apr 2005
- Messages
- 16,950
OK, I have no shame in admitting a few things here...
A few years ago when I was youngER and stupidER, I entered a debt consolidation program, BIG mistake. I know you aren't thinking about doing it, but not only did I not negotiate rates, I ended up defaulting and going to court with most since they didn't want to settle. So, I had a year or two of late fees and interest, plus court fees, and a horrible credit report from all of it - what fun! I think my credit won't be completely healed until 2012, it's a miracle I was able to get a mortgage recently.
However, that being said, no one is perfect. And I learned a TON from the experience. Mostly a lot of it was not being responsible and not caring about the bills as they came in. Factor in a few thousand dollar credit cards with a serious gambling problem, well, you do the math. Then find yourself in a job where you aren't making much money as an intern, and, well, do the math again
I only skimmed over this thread, but I want to point out a few things...
Work on IKEA FIRST - most creditors will actually report each month to the bureaus if you are over your limit. That means that each month that goes by that you are over IKEA, your report is being pinged (most likely).
The ideal balance most places say is 35% to have your balances at, your score is also hurt by your revolving debt ratios or whatever the heck they are called.
Honestly I don't think you have a lot of debt, I had a rediculous amount, which we don't need to get into. Maybe even borrow the money from a friend, family member or take out a personal loan (no offense, but not likely with your credit). I would recommend against getting a credit card. I can say from experience that you will transfer and relax a bit, and probably not pay off within that year and then you get slammed for interest for the ORIGINAL amount you transferred, regardless of how much remains. If you transfer 1200 and only have 100 left, you get to pay interest on the full 1200 - fun isn't it?
Anyways, it's not a fun time, but I was where you were and much worse. Both with the score and with the debt. It gets better, I have to admit the thing that you CAN'T do is dwell on it or look at the big picture. I remember looking at the overall picture and I was like, woah, this blows, and I struggled to make progress because I kept wanting to do it all at once. Make a plan, make a budget, stick to both, be realistic, and PAY YOURSELF a little bit each week or month. If you put 100% of your cash into your bills, you won't be able to stick with it for too long.
People make mistakes, learn from them and you are better off. Good luck mate.
A few years ago when I was youngER and stupidER, I entered a debt consolidation program, BIG mistake. I know you aren't thinking about doing it, but not only did I not negotiate rates, I ended up defaulting and going to court with most since they didn't want to settle. So, I had a year or two of late fees and interest, plus court fees, and a horrible credit report from all of it - what fun! I think my credit won't be completely healed until 2012, it's a miracle I was able to get a mortgage recently.
However, that being said, no one is perfect. And I learned a TON from the experience. Mostly a lot of it was not being responsible and not caring about the bills as they came in. Factor in a few thousand dollar credit cards with a serious gambling problem, well, you do the math. Then find yourself in a job where you aren't making much money as an intern, and, well, do the math again
I only skimmed over this thread, but I want to point out a few things...
Work on IKEA FIRST - most creditors will actually report each month to the bureaus if you are over your limit. That means that each month that goes by that you are over IKEA, your report is being pinged (most likely).
The ideal balance most places say is 35% to have your balances at, your score is also hurt by your revolving debt ratios or whatever the heck they are called.
Honestly I don't think you have a lot of debt, I had a rediculous amount, which we don't need to get into. Maybe even borrow the money from a friend, family member or take out a personal loan (no offense, but not likely with your credit). I would recommend against getting a credit card. I can say from experience that you will transfer and relax a bit, and probably not pay off within that year and then you get slammed for interest for the ORIGINAL amount you transferred, regardless of how much remains. If you transfer 1200 and only have 100 left, you get to pay interest on the full 1200 - fun isn't it?
Anyways, it's not a fun time, but I was where you were and much worse. Both with the score and with the debt. It gets better, I have to admit the thing that you CAN'T do is dwell on it or look at the big picture. I remember looking at the overall picture and I was like, woah, this blows, and I struggled to make progress because I kept wanting to do it all at once. Make a plan, make a budget, stick to both, be realistic, and PAY YOURSELF a little bit each week or month. If you put 100% of your cash into your bills, you won't be able to stick with it for too long.
People make mistakes, learn from them and you are better off. Good luck mate.