Anyone Here In Debt?
<div class="IPBDescription">its always fun.</div> ok so hiya!
i got a bright flashy letter today! <!--emo&:D--><img src='http://www.unknownworlds.com/forums/html/emoticons/biggrin-fix.gif' border='0' style='vertical-align:middle' alt='biggrin-fix.gif' /><!--endemo--> its red. i think thats supposed to be bad.
its a 'creditors notice' they expect 2500 in 7 days... but the letter was mailed on 26th of feb. and i didnt even get it till today so its too late to do anything.
is a CCJ that bad? i think i can get rid of it in time, by actually paying the debt off, but atm i dont have the money to do it.. so oh well..
should i get in contact with them? and explain the fact i have no money? would this hold them off? if i offered to pay it back small bits at a time??
aaaarrgh i hate growing up.
i got a bright flashy letter today! <!--emo&:D--><img src='http://www.unknownworlds.com/forums/html/emoticons/biggrin-fix.gif' border='0' style='vertical-align:middle' alt='biggrin-fix.gif' /><!--endemo--> its red. i think thats supposed to be bad.
its a 'creditors notice' they expect 2500 in 7 days... but the letter was mailed on 26th of feb. and i didnt even get it till today so its too late to do anything.
is a CCJ that bad? i think i can get rid of it in time, by actually paying the debt off, but atm i dont have the money to do it.. so oh well..
should i get in contact with them? and explain the fact i have no money? would this hold them off? if i offered to pay it back small bits at a time??
aaaarrgh i hate growing up.
Comments
If you are not to sure speak to your local Citizan Advice Bureau they should help you out too.
Hrm. Though I'm not sure if 'rent' counts as debt, even if I'm in the midst of my two-week grace period. :b
That being said, most definitely contact the creditor asap and make some arrangement to at least give them a few dollars a week or month, just enough to pacify them and keep it off your credit rating. And yes, plastic is bad, very bad - just say NO! <!--emo&:p--><img src='http://www.unknownworlds.com/forums/html/emoticons/tounge.gif' border='0' style='vertical-align:middle' alt='tounge.gif' /><!--endemo-->
ouch.
Bad credit = you are screwed for most of your adult life <!--emo&:)--><img src='http://www.unknownworlds.com/forums/html/emoticons/smile-fix.gif' border='0' style='vertical-align:middle' alt='smile-fix.gif' /><!--endemo-->
Call em, tell them you can not make that large a payment in that time. Ask if you can make smaller payments.
Though honestly enugh you already shot your self in the foot by not paying your bills in the first place (it dosn't go to a creditor unless you ignore the group you owe $$ to.)
The best thing to do is to give them a call and work it out with them on the phone, for the most part many of them are extremely flexible and willing to work with you.
Thansal is right, not paying bills == bad.
Or, run. Let the debt get to the point where it is sold to a collections agency, who may then in turn sell it to another and so on and so forth until they finally decide you aren't going to pay and write it off.
It rather depends on whether you could possibly pay any money back now or if you intend to get a mortgage or loan at some point (say for tuition or relocation). If you intend to borrow money or own a credit card or a contract mobile phone in the next two or three years, then talk to them and pay it.
You haven't really given a lot of information. Is it a credit card bill? A store card? Different situations call for different tactics.
I'm in the happy situation of not having to indebt myself to go through university, which is something I'm extraordinarily grateful for. In so far, I can only give you this advice I have from experience gathered together with my parents: Be honest with yourself and those you are indebted to. Look at your income, identify expendable expenses, buckle up, and go through with it. It isn't easy, it isn't nice, but it works.
err, bad credit will stay with you for life, not a few years.
the problem is that bad credit builds bad credit and good credit builds good credit. And no credit gets yah nothing.
basicaly with out credit you can't get a CC or a loan or anytihng. With out these things you can't build good credit. Self defeating cycle.
GG credit system.
i got a bright flashy letter today! <!--emo&:D--><img src='http://www.unknownworlds.com/forums/html/emoticons/biggrin-fix.gif' border='0' style='vertical-align:middle' alt='biggrin-fix.gif' /><!--endemo--> its red. i think thats supposed to be bad.
its a 'creditors notice' they expect 2500 in 7 days... but the letter was mailed on 26th of feb. and i didnt even get it till today so its too late to do anything.
is a CCJ that bad? i think i can get rid of it in time, by actually paying the debt off, but atm i dont have the money to do it.. so oh well..
should i get in contact with them? and explain the fact i have no money? would this hold them off? if i offered to pay it back small bits at a time??
aaaarrgh i hate growing up. <!--QuoteEnd--></td></tr></table><div class='postcolor'><!--QuoteEEnd-->
Mate get in contact with them a.s.a.p. as a County Court Judgment looks really bad on your Equifax credit record. If you keep ignoring the letters they will send balifs round to your residence to sieze any goods they deem valuable even if they don't belong to you.
Tell them you can make the payment but not right now and they should negotiate somthing with you. One way or the other tho they are gonna take the money so be prepared for a knock on the door if you don't contact them.
However if that 2500 was used to purchase something, then they will take that first.
Being a creditor ftw?
The laws are very, very specific about what they can and cannot do there isn't any grey area.
Like it has been pointed out, having good credit is a must - and the best / fastest way to get good credit is to have a credit card and pay it off - on time - all the time.
However, credit card companies like to raise credit limits (I have a card with a 10 grand limit on it right now). However, lets say your going to go buy a house, or a car (something you need a loan for) - the bank will only loan you money based on your credit rating / income variables.
Here is where the card plays in. Lets say you qualify for a 20g loan. If you are like me and have a card with a 10g limit, the bank will only give you 10g. They assume (and rightly so) that you can go out and spend that 10g on your card in the drop of a hat!
Well, this puts you in a delemma. The car you want is 20g - the bank will only loan you 10 - but you have this card worth 10 as well. So, do you buy the car 50/50 on bank and card? - what are your options?
Doing the 50/50 isn't bad for credit rating - but you'll get killed by the interest rates / payments (which may end up hurting your credit rating). Your best bet is to close the credit card, wait a few weeks, then go get your 20g loan from the bank - best deal possible.
Likewise - school loans aren't bad for your credit rating - so long as you pay them off. The reason being because the loan is already there - you can't add to it (like you can with a credit card). I would even recommend taking out a small school loan simply to boost your credit rating (do $1000 and pay it off in a lump sum before interest kicks in.)
All in all, the credit system isn't bad - it is just complicated. Same thing with loans / debt - it isn't bad so long as you keep paying (banks like interest) and it won't hurt your credit rating if you stick to / exceed whatever payment plan your on. It only starts to hurt your rating when you fail to make payments - at which point you are a liability to the banking institution.
Hope this helps!
Yes I know what im talking about, I used to run credit and docs for Home loans for Bank of America. And i've been in a 'credit situation' before. I have another 3 years before my credit can start being repaired.
Where do you live? I live in England, and a CCJ stays against your name, even if you clear it, for 6 years - thus affecting your ability to gain a mortgage, borrow money, etc. etc.
I don't use credit cards at all for that reason, only debit cards.
Anyone heard of <a href='http://www.zopa.com' target='_blank'>ZOPA</a>? A money-based version of eBay. I think it'll really take off! It has great possibilities, like a more safe version of the Stock Market, with a better rate of return than most savings accounts. But you need a good handle on your finances, and a sound financial mind.
However if that 2500 was used to purchase something, then they will take that first.
Being a creditor ftw?
The laws are very, very specific about what they can and cannot do there isn't any grey area. <!--QuoteEnd--> </td></tr></table><div class='postcolor'> <!--QuoteEEnd-->
Sounds like he's UK based. Different system over here. If you don't pay them they don't care. They just come to your house and if you don't let you in they get the police to kick your door in and take whatever they deem valuble. They hold your possesions for a couple of weeks for you to get some money to them but if you don't they auction it off.
Not very fair but thats how it works here.
You haven't really given a lot of information. Is it a credit card bill? A store card? Different situations call for different tactics. <!--QuoteEnd--> </td></tr></table><div class='postcolor'> <!--QuoteEEnd-->
it is a credit card with barclay card at 16.9% apr.
i have a 2nd card a mastercard with lloyds... but im paying that one i talked to them and am paying 40 a month now im working...
i could try and call them and see?
thing is, i havent been getting my mail till recently, so had no idea how bad it had become...
and afaik a ccj can be taken off when the total amount owed is paid but still i think ill call them tomorrow....
i got a bright flashy letter today! <!--emo&:D--><img src='http://www.unknownworlds.com/forums/html/emoticons/biggrin-fix.gif' border='0' style='vertical-align:middle' alt='biggrin-fix.gif' /><!--endemo--> its red. i think thats supposed to be bad.
its a 'creditors notice' they expect 2500 in 7 days... but the letter was mailed on 26th of feb. and i didnt even get it till today so its too late to do anything.
is a CCJ that bad? i think i can get rid of it in time, by actually paying the debt off, but atm i dont have the money to do it.. so oh well..
should i get in contact with them? and explain the fact i have no money? would this hold them off? if i offered to pay it back small bits at a time??
aaaarrgh i hate growing up. <!--QuoteEnd--></td></tr></table><div class='postcolor'><!--QuoteEEnd-->
CCJs = County Court Judgements so that's bad, having them will mean you will be refused credit etc etc
Phone them up asap and you will find them to be very reasonable, they only get **** at you if you don't talk to them. Talk to them explain your situation and they will sort out some sort of reasonable repayment scheme that you can afford.
In my case, I owe £480 on one credit card £380 on another, I'm £1150 pounds overdrawn (that's £150 over my overdraft limit so that's bad) and I owe about £1700 in student loans. The last one is okay as that comes out my wages each week so I don't have to worry on that one. The others I working at clearing and am having an impact on them gg new years resolutions. Cutting up my credit cards really really helped on that one lol.
Thing is if I pulled my finger out and stopped going out on the booze each week I could have that lot cleared in less than 2 months but I have no will power when my mates phone up and talk me into going out.