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Could use any help.

3K views 20 replies 12 participants last post by  Greebo 
#1 ·
My DH and I are going through a really rough time. Its been about 8 months now. We are back living with my dad so we don't have to pay rent. DH lost his job (just found a new one) and I am trying to find a job.

Anyway---hopefully we will get out of this soon.

My issue is we cannot live here forever. We have to get an apartment. My credit and DH's credit is so bad we would never get approved for an apartment. We have a total of $6000 in debt on our credit reports. We want to pay them off.

My questions are:

How should I go about paying it off. Pay off the small amounts first, the large amounts first, or does it not matter?

Should I call the companies and see if they will settle with me for a lower amount?

I have lots of medical bills (about $50,000 for misc surgeries and hospital trips I have had to take). Will this lower my credit score?

How long does it take after you pay it all off for your credit to start rising again?

Thanks :)
 
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#2 ·
First of all, thank goodness you have your dad there to help you guys out. That must be a relief that you at least have a place to live. We are in trouble financially also. I'm not an expert, but I would try calling the companies and seeing if they can arrange better payments with you without hurting your credit. Good luck and congrats on DH getting his new job.
 
#3 ·
Your score will start to raise as soon as you start paying. It is a slooooow process.

Your hospital bills shouldn't show up on your credit as long as you are paying something on them. If you didn't pay, then they are probably in collections which means they are on your credit report.

Line all your bills up on paper (makes you stick to it that way) and then start paying your bills smallest to largest, once the smallest is paid off used that money to put to the next and so on till your debt it paid off.

Could you live with your Dad until your debt free? $6K isn't that bad and if you both are able to find work then you could really knock that out.

Good luck! You have found the right place.
 
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#4 ·
the best method is usually smalles to largest.. UNLESS.. you have one bill with a really bad interest rate, a credit card for example.

Sometimes a high interest bill like that can actually build up more on interest than the original amount owed by the time you get to it in the snowball.

So if you have a credit card with a balance of say $1000 but an interest rate of 25% it might be best to pay that one off first since after 4 months it has doubled.
 
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#15 ·
Ummm.... no it doesn't double in four months. Credit card interest rates are ANNUAL rates, not monthly.
 
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#5 ·
I have not been able to pay any of my medical and they are all in collections I think. I was getting SO many bills at once and with no job or anything I just let it go. Ugh.

My dad will let us live here for prolly another year, but its hard here. We don't have any heat, and I have been washing clothes in the bathtub. But, atleast its a place to live.

I do not have any credit cards or anything so intrest is not a biggie. My credit cards are @ collections on my credit report already. Its all on there.

Another question...Some of the stuff on my DH's credit report will of been on there for almost 7 years...after 7 years does it get taken off or should this still be paid?

Thanks!!
 
#9 ·
My DH and I are going through a really rough time. Its been about 8 months now. We are back living with my dad so we don't have to pay rent. DH lost his job (just found a new one) and I am trying to find a job.
Congratulations on DH's finding employment!

My issue is we cannot live here forever. We have to get an apartment. My credit and DH's credit is so bad we would never get approved for an apartment. We have a total of $6000 in debt on our credit reports. We want to pay them off.
Not necessarily true - you may need to do newspaper searches for landlords who'll deal with you as opposed to the major apartment companies, but you can find something. It may not be great, but it'll be something.

How should I go about paying it off. Pay off the small amounts first, the large amounts first, or does it not matter?
You need to establish a budget for yourself. Keep your expenses minimal but take care of your food, shelter, clothing and transportation needs first (and I mean NEEDS - not new shoes cause they're pretty - new shoes cause your old ones are falling apart)

Then if you have any debts still active - cards and accounts for which you still get actual statements and minimum payment amounts - you need to get current on those accounts first. Then you start tackling them from smallest to largest.

Should I call the companies and see if they will settle with me for a lower amount?
After all your active accounts are paid off, you can start saving up to settle with the idle/charged off accounts. Save up 25% of the amount due of the smallest and then call them and offer what you have in exchange for a settlement letter *IN WRITING*. You're not there yet - more on this when you get there.

I have lots of medical bills (about $50,000 for misc surgeries and hospital trips I have had to take). Will this lower my credit score?
What, worse than your existing debts? Sure - a bit. You're in no position to worry about your credit score though, are you now?

How long does it take after you pay it all off for your credit to start rising again?
As you eliminate/settle various debts it'll start to go up. You have bigger fish to fry however.


Another question...Some of the stuff on my DH's credit report will of been on there for almost 7 years...after 7 years does it get taken off or should this still be paid?
It will get taken off if it's been completely inactive for 7 years. If there has been activity, however, it'll stay on. When you contact them, you WILL wake them and make them active again.

But that isn't the real question is it? The real question is - do you owe the money? If these are legit debts, whether they're old or not, you and/or DH made a promise to pay that you now have an opportunity to make good on. Whether or not they show up on the report isn't really as important as knowing that, come hell or high water, you eventually made good on your word.
 
#11 ·
Thanks for everyone's good advise. With the CC's they are in collections so there is no interest on it anymore, is what I meant.

As for those 7 year debts, they have been untouched for 7 years..thats most of DH's stuff he did from when he was 18.

As far as a job, I do not drive. I suffer from severe anxiety so this is why finding a job is difficult. I have been doing side jobs for people my dad knows (I have one starting Monday and I think it will be til Xmas).

I guess first step is to get my credit report and get all my debts...then start paying.
 
#13 ·
get your credit reports for free once a year here:

http://www.annualcreditreport.com

Do not use "free credit report dot com" - it's just a front for a subscription service.
 
#14 ·
You need to firm things up with dad. "Probably a year" and dad thinking that you will be out with the first peep of the robin makes for an awkward relationship. You might list what you will do as far as chores etc go and what you think you can contribute for food. And then say, if we can do this for a year, we would be in a situation where we could move out.
 
#17 ·
Oh my i jst looked at my credit shows me still owning a home with my ex husband 12 years ago still making current payments./ NONE OF THEM ARE LATE.
 
#18 ·
Edited, sorry, it's late, I didn't see that someone already pointed out the interest rate thing. :lol:
 
#20 ·
~I don't have any advice to add to what's already been given but it sounds to me that you are at a good place mentally, ready to face your financial problems and accept advice. You and your husband are working and looking for work and that's great!
Maybe I do have some advice, are you getting any kind of government assistance? You didn't post your income but if you're living without heat I'm thinking you may qualify for some kind of assistance. If nothing else, take advantage of the food bank.
I'm also a SJ native so feel free to PM me to talk about or ask anything. And please stick around FV! This site and the people here are so supportive!~
 
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