Please Advice

[WakingJackson]

Hi everyone.

I tried calling some professionals in my city but they all gave the the run around. I was hoping one of your qualified members would be able to offer me some advice. I'm 27 years old and work as a part time real estate assistant- I currently earn $400 a week but next year I will become an agent and start making more money. I wanted to know when it would be best for me to take action and what specifically to do.

So, I'm in debt for about $40K. A third is student loans (which are no longer with the government but with collection companies) a lawsuit (a landlord sued me for a year's rent, 2008-2009, totaling 14K even though I was only there 3 months and had to leave because I could no longer afford to pay, this was during the crash) and general credit card/store credit accounts.

I haven't had any money in years which is the reason why I'm in debt. I wanted to know if I should take care of the situation now when I have no money or in the future when I will have money. As far as actions, should I pay everything off once? Should I take the creditors up on their offers and settle the accounts by paying about 60% of the charge? Should I file for bankruptcy? I think bankruptcy stays with you for 10 years and credit 7 years.

Any help would be greatly appreciate it. Thank you

Ps-I don't know the status of the lawsuit. I signed off on a letter as I was moving out of my building in 2008 but didn't get around to opening it until a couple weeks (I'm an idiot) later when I realized it was a lawsuit and I had already missed the time period to file a response. I use to get 2 or 3 letters a year from a lawyer saying I had to pay the management company but they've now stopped for a year or two.

[bjl584]

I would find a better job first and foremost. Why wait until next year when you might be an agent and might make more money? What's wrong with job searching today? What is the student loan debt? What's your degree in? Can you work in your field?

Have you learned a lesson from all this? It's your lifestyle and attitude about finances that got you into this. More money and a better job will only go so far. You need to change your perspectives on money to fix all this.

At this point I'd look at ways of making more money and cutting every expense that you can.

[WakingJackson]

[QUOTE=bjl584;388348]I would find a better job first and foremost. Why wait until next year when you might be an agent and might make more money? What's wrong with job searching today? What is the student loan debt? What's your degree in? Can you work in your field?

Have you learned a lesson from all this? It's your lifestyle and attitude about finances that got you into this. More money and a better job will only go so far. You need to change your perspectives on money to fix all this.

At this point I'd look at ways of making more money and cutting every expense that you can.[/Q


I can't be an agent right now because I don't have my real estate license yet. I've worked as an assistant for realtors/brokers for a year and a half and I'm currently studying to to take the real estate exam. Once I have my license, I plan on working with my boss as part of her team- meaning I will work for her, use her clients/resources and split my commissions with her. I plan on doing this for a year to gain experience and have some guaranteed income since there's no guarantee I will sell on my own the first year. Anyway, after working for her for a year I plan on venturing out on my own,

I have a Bachelor's Degree from UC Riverside in Psychology with a focus on Social Development and Industrial Studies. In order to work in my field I would need to go to grad school for at least 5 years- I don't have the luxury of doing so and I don't want to because I've already been in college for 4 years. I actually like real estate and I'm happy to have it be my career. My student loans are about $30K. Half is mine but the other is from my stepdad and mom- they used the government loan parents can get to help their kids pay for college on a business venture that inevitable failed within a couple months. They both left the country and now they're coming after me to pay for the loan they took out.

I have my learned my lesson. Obviously, never get a loan for someone else. I was actually up to date with everything until I moved out of my apartment in late 2008. I lost my job, couldn't find another and had no idea about unemployment insurance. This was all when the market crashed in 2008. That's when everything started going downhill. From now on, I'll only buy things that I have the money to afford. I actually have cut down on my expenses- that's how I'm able to survive on $400 a week while even sending my Mom $250 a month since my stepdad is not helping and not paying child support.

It's been a nightmare

[snafu]

WJ, I don't have a solution to problems outlined since government student loans and interest are not ever discharged [removed] even by bankruptcy. Sadly you did not contact the lender to explain your circumstances when you first went into default when forebearance might have been possible. I hope the link works as it might help you understand how this problem will continue to affect your future.
https://studentaid.ed.gov/repay-loans/default.

Are you a co signer on your parent's loan? Does your copy of the contract make you liable for their business loan? It's horrible that parents would hang this on their children.

I'm guessing your being sued by the management company for moving out breaking your signed lease. What can anyone say about your choosing to ignore the letters with a notice of lawsuit thereby failing to submit a response in the required time frame? How/where would you acquire the funds to pay a settlement?

Are you likewise in arrears on credit cards? How much do you owe and what is the interest rate? What is your credit score? If you have not checked, you can get a free report on-line from one of the credit reporting agencies. Do not pay for this service, do not give your CC number to those fake agencies.

Without a job in your profession or related to your degree you've chosen to follow another career path. Will you need to be bonded in order to be a licensed agent? Will that process be waylaid by your financial difficulties? You need to find out the process and details.

[Raven6]

Wow, what a mess you've gotten yourself into. That's a crazy amount of debt. Are you paying anything on any of these debts at this time? Also, I think it's commendable that you're giving your mom $250 (is that weekly or monthly) because she's not getting child support but since your mom is part of the reason that you're in the financial mess you're in, I think you need to cut that amount down or out completely. Your mom needs to apply for child support and your step dad needs to take care of his child, not you. I think you need to take care of the two most important debts which are the student loans and the court settlement. I've never had student loans so I'm not sure how they work as far as setting up payments or just paying a certain amount each month towards them. As far as the settlement goes, I would get in touch with the court and see if you can either try to have the case re-heard in court or try to set up a payment plan. The court could potentially put out a warrant for your arrest (I think) if you don't do something so setting up a payment plan is important on that one. Is there any way that you can take another part time job somewhere or pick up extra hours where you are now to make more pay? I know that your goal is to do real estate but since you're only part time now, I would recommend making as much as you can right now to try to get a jumpstart on paying these things off. If you could post a breakdown of at least what the interest rates are, what you owe and how much the cc companies are willing to take as well as any expenses you have now, that would be helpful for us and I think you'd get more responses.