Looking for input/advice

**jpg7n16** · 07-18-2010, 06:57 PM

Here's a phrase you'll hear a lot on here: You cannot borrow your way out of debt.

If they are creditors that report to the credit bureau, it's already on your credit anyways. Trying some debt scheme of moving it here or there isn't the solution for debt.

Paying large amounts towards any debt you owe is the way to go.

If you do it right, your debt would be paid off before the credit card even arrives, so it would do you little good on your report to even get the card.

My honest advice to you would be: stop worrying about your credit score, start getting out of these debts, get good health insurance coverage, and start building up to pay cash for things.

**buildmybudget** · 07-18-2010, 07:10 PM

I agree...get your budget under control and throw your credit cards away. Squeeze every last dollar out of whatever income you have and put it towards your debt. I would also recommend putting together some kind of budget that shows you how much you can put towards your debt each month and how long it will realistically take to get out of debt. This will not only help you plan better, but will also help set good expectations with your husband to be. Best of luck to you both and congrats on your engagement! =)

**TheStreetCeo** · 07-19-2010, 04:32 AM

Buildmybudget is absolutley right. You need a budget, and need one bad. Cut up your credit cards and don't use them again for the next 100 years or so. If you build a budget, establish and fund an emergency fund (EF) and pay down your debt, there is no reason to ever "need" a credit card again.

One more thing. Slow down, take your time, and stay on this website. There are some wicked smart people here that are more than happy to walk you through every single step. Trust them.

**jIM_Ohio** · 07-19-2010, 05:43 AM

Originally posted by Doorothie View Post

I currently owe roughly 6000 to the hospital, and 1200 to creditors, 650 of which I'll be paying off in the next month. I have a theory for getting my debt paid off and getting my credit into some kind of good shape before my wedding in 16 months. I do not pay any rent, car insurance, cell phone, anything. My responsibilities consist of college tuition, my dogs' food and vet bills, gas for my car, and my gym membership. Basically I'm looking for some feedback on my theory. How effective it will be, any suggestions to make it more effective, general input...

Basically, I plan to open a credit card to settle the other 550 or so that I owe creditors, so that I'll be using credit, but paying it off. I also would like to get my own cell phone. Something that I make steady payments on that is reported to credit agencies. My fiance is not willing to switch any of the bills to my name (which I can't really blame him for), so I really feel that this is my only option/course of action. If anyone has any suggestions, I would be very open to anything.

I appreciate your input!

Originally posted by jpg7n16 View Post

Here's a phrase you'll hear a lot on here: You cannot borrow your way out of debt.

If they are creditors that report to the credit bureau, it's already on your credit anyways. Trying some debt scheme of moving it here or there isn't the solution for debt.

Paying large amounts towards any debt you owe is the way to go.

If you do it right, your debt would be paid off before the credit card even arrives, so it would do you little good on your report to even get the card.

My honest advice to you would be: stop worrying about your credit score, start getting out of these debts, get good health insurance coverage, and start building up to pay cash for things.

What he said. You cannot borrow or finance your way out of debt.

You need $7000 of cash flow to pay off the debt. Any hard worker or motivated person should be able to do this in less than 6 months, even with attending college full time.

Get a job. Plain and simple. Your dog will have to live on dog food for the time being

**wincrasher** · 07-19-2010, 11:32 AM

It depends on the interest rates you are paying. It may make some sense and make repayment easier if you can consolidate your debt at a lower rate. Unfortunately if your credit is already damaged, then that may not be possible for you.

You can't borrow your way out of debt, but you can certainly reduce your costs and make your situation more manageable.

**Doorothie** · 07-19-2010, 07:06 PM

Thanks for your input guys. For the record, I currently don't have any credit cards, or credit card debt. Everything that I owe is hospital bills. Roughly $6000 directly to the hospital, and $1200 to the collectors. No interest on any of it. I guess you're right that I can't borrow my way out of debt, but that wasn't what I was looking for. I thought it might be better for my credit to "pay off" the stuff in collections, utilize a line of credit, and show that I can make payments on that. All of those things are (I thought) ways to improve credit. I don't want a credit card to use for anything else. Don't want to buy clothes with it, no tvs or other crap that I don't need. I learned that lesson already, and got that paid off (small victory, woo!). I will work on saving for bills as well as school. I currently have two savings accounts and one checking account. I have a savings account for school, and a savings account for debts. Right now, my savings account has $1000 in it, which covers books/tuition for fall semester. I'll have to register for spring semester around November, so I don't really have all that long to save another grand. But if I really commit to it, it shouldn't be a problem. I'm just so eager to get this all taken care of that it clouds my thinking and I don't know where to go. Sometimes I get so discouraged. But then I remember that, in comparison, I have a very small amount of debt. I just have to manage and get rid of it

**jpg7n16** · 07-19-2010, 07:46 PM

wait... no interest on any of it???? why in the world would you want to transfer it onto an interest charging credit card???

That's like moving out of an apartment with free rent, to the same apartment but rent is too high. It's all debt. aka the bad part of town.

As long as you've got free "rent" I wouldn't worry about accelerating the payments. Yes you want them paid off eventually, but I'd be in no rush to move my stuff out.

I'd even say don't pay the extra $650 this month if you can help it.Pay the min and keep the rest of the 650 for living expenses as a buffer to make sure you don't incur any further debt. If the $1000 in your bank account is solely for school stuff, you may need some cash. Start building your emergency fund as long as you've got 0% interest.

Looking for input/advice