Debt Problems - Debt problems. What options do I have?

Debt problems. What options do I have?

First off I want to thank you all for taking the time to help me solve this problem. I am a 25 year old college student that is very deep in debt. I was able to make minimum payments on my cards and scrape by pretty much most of my adult life. During May I missed several payments but in June I caught up on all of the late payments. The problem was as I was catching up all of the old payments the new payments were coming in with double the amount due, late fees attached, increased interest and I had no funds to pay these bills. Well after that things just fell apart and I am so far in the hole I do not know how to get out. I contacted a consolidation company and they wanted about 780 dollars a month for the next four years to pay off my debt. I come home with about 1200 dollars and after rent, utilities and my cell phone that brings me over 1200 dollars. I do not know what to do. My minimum payments are through the roof and I cannot figure out a solution to this problem. Thanks

Public Comments

Contact Consumer Credit Counseling Services at 1-800-388-2227. They are the oldest and largest credit counseling service in the Country and are non profit. I used them several years ago and was debt free in 36-months.
personal bankruptcy - it may seem hard, but if you own no property or companies or expensive cars you should be ok. there is a stigma still to bankruptcy, but nothing can ever be as bad as the stress involved in trying to manage your ever increasing debts. visit an insolvency practitioner (or an accountant, at least) who will help you go over your options. good luck.
im in uk and have debt type 'helpers' they talk to you and your creditors and agree what payments can be made interest will stop- but you may get bad credit ratings. and have to pay the 'helpers'- but its worth it for peace of mind to give you an idea www.daniel-chandler.co.uk
You say you contacted a debt consolidation service, but did you contact the credit card companies to see if they’ll work out something with you? Give them a call and see what you can do. Secondly, does your school offer any financial counseling services? Definitely check into that. Are you taking out as many government offered student loans as you’re allowed? When times were lean, my husband & I paid our rent using some of his financial aid.
My advice is to get in touch with a community budgeting service as soon as possible. It's usually best to avoid debt consolidation companies as they charge higher rates of interest and often have very strict clauses in their lending contracts (such as heavy penalties if a single payment is missed). You'll usually find that it's better to either try to borrow from a reputable bank at a lower interest rate or perhaps to sell some assets to make a good dent your debts. A community budgeting service will gladly help you with this.
Is it possible for you to get a second job?? What about a roommate or sharing an apartment with someone? Could you move in with family or a friend? I wish you the best of luck. I was there 10 years ago after losing my job and overextending my credit. I rented out the other bedroom in my apartment and got two jobs. It sounds rough but so is having creditors hound you everyday.
You have to be careful when dealing with debt consolidation or negotiation companies, some will ruin your credit. Try contacting the credit companies yourself asking for reversal of late payments and a reduction in interest rates, if they are confident you are going to pay your account down they will likely grant you your requests, start with the highest interst card first and go down the list. Your last resort should be a debt consolidation or negotiation company. Check them out on ripoffreport.com and see what comes up about them.
You should talk to a credit counselor. I did a lot of research and finally found Debt Counseling Corp. They have been great. Lowered my interest, payments and just made me able to breathe! I was in a similar situation. Here is their link: http://www.DebtCounselingCorp.org let me know how it turns out!