Credit Card Debt, Should I use Debt Managment? Greenpath?

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welllll, being young and naive I sort’ve got myself into a little mess with credit cards. I owe about 30k in credit card debt and a bank loan + 5k in student loans. Well, I’m having hard times, perfect credit for 12 years until I lost my job at the post office. I was working thru temp 1 day a week, now I’m working minimum wage and haven’t paid on any of 5 cards in 3 months. I explained the situation to the creditors and told them to please stop calling me so much, I recieved 20 calls in a day from the one company! So my car blows up too.. I did have the ball together, was starting my own business,, now everything fell apart, car blows up, gal left w/ kid, living in hell,,, please help my broke asz.. has anyone used Greenpath debt management? Chase sent me there way, they said they will get the cards down to 2%, consolidated, and paid off in 59 months. I don’t care about my credit so much, I just want get my life together again.. So basically i’d be paying $ 560 a month instead of almost $ 900.. It wasn’t hard paying these when I had a good job, but now its near impossible..Thanks for your opinions!!! You can call me a loser if u like 😉

3 Comments
  1. Reply
    The Yakuza
    June 26, 2011 at 6:44 am

    You are not a loser at all. So many Americans fall into the same debt trap but there is hope. My wife and I only had part time work and we paid off $ 23,000 in a year and a half. You can do it too I promise. Don’t give up. I know it seems as though everything is falling apart but when we thought we were done I read a book by Dave Ramsey called “The Total Money Makeover” and he lays out some simple steps.

    Don’t listen to the guy below. Get another job if you have to. Don’t file for bankruptcy. Make the creditors do it. Don’t volunteer to do it. The gentleman below has no idea what he is encouraging you to do. File for chapter 7 and you not only ruin your credit report but every job you apply for is going to know about it. Making it even harder to get work. The guy below has no evidence about “Dave Ramsey is crazy” other than libel. Dave Ramsey says pay cash for everyting. Does that sound like bad advice to you?

    Get another job if you have to. Call your creditors and work with them.

    I’ve proven that the Dave Ramsey plan works. I’ve seen people with hundreds of thousands of dollars get out of debt. You are not done yet so don’t let people trick you into giving up.

    Set up a budget. You have to know where every penny is going.
    Cut expenses. Cut everything down to the bare bones.
    Save $ 1,000 for an emergency fund.
    Start paying off debt like your life depends on it because it does!!!!

    There are other steps but these are all you should focus on.

    Get on track with your creditors. I would highly recommend the book as it will inspire and show you the way. I’ve been debt free for about 8 months now. It feels great.

    I’ve seen people in way worse situations than yours so please don’t give up.

    Edit: When I say cut expenses I mean really cut. My wife and I cut our cell phones down to the bare. We rented one redbox a week and that was our “fun” budget. We NEVER went out to eat and we sold so much stuff it was unreal. I’m sure our kid that he was going next. I have helped a lot of people get back on the right path and they tell me they have cut to the bare minimum but when I have them lay out there budget I always find hundreds of dollars in savings that they could do. We spent (family of 3) $ 75 to $ 100 a month in groceries. We ate plenty but we bought cheap and ate everything we made.

  2. Reply
    CatDad
    June 26, 2011 at 6:45 am

    This is a huge amount of debt for someone making minimum wage. If your future prospects show no sign of improving, you should seriously think about filing for Chapter 7 bankruptcy. Don’t let anyone smear you for making this decision…do what’s best for you.

    A non profit debt management plan like Greenpath or CCCS “can” be a good program assuming that you can keep up with the payments. It doesn’t hurt to try….if you are still really struggling even after enrolling with the program, then Chapter 7 bankruptcy is probably your best bet.
    —————-
    All the gimmicky advise from Dave Ramsey cannot help in certain situations such as yours: minimum wage with $ 30K in credit card debt….it’s simply not going to happen.Dave Ramsey virtually never mentions Chapter 7 as an option…with him it’s always pay back the debt no matter what. The big banks had no trouble whatsoever taking trillions of our dollars when they were in trouble……If you need to file for Chapter 7, then do it. Get a fresh start and start a new financial life….Your credit rating can be good again in as little as 3 years after filing.

    Final note: It’s critical that you keep your student loans out of default. Defaulted student loan debt can explode out of control.
    ————
    You cannot be denied employment for filing for BK…it’s a federal law..the person above is incorrect about this…and apparently this person has a magic wand because I don’t know how a person who is making $ 7.50 an hour with $ 35K in debt can start saving a $ 1K emergency fund and pay food/rent at the same time…Watch out for Dave Ramsey followers who have been tricked into thinking that BK is always a horrible choice. It is a bad choice…but sometimes it is a necessary choice…The financial institutions are amoral predators….don’t let anyone try to guilt trip you should you have to file for Chapter 7.

    Or….go on the Dave Ramsey destitution plan for 5 years and live in abject poverty….Chase really needs more money…the billions they got in government bailout money wasn’t enough…their 3 billion in quarterly profit wasn’t enough…they need for you to live on bread and water for 5 years…How dare we as the little people use bankruptcy court to discharge credit card debt…We do not deserve the same rights as corporations. Do what Dave Ramsey says…become a slave to your creditors…

  3. Reply
    mcfc
    June 26, 2011 at 7:44 am

    Hi don`t take out any more loans or credit go to http://www.clear-credit-card-debt.com and fill in your details they could get you up to 50% written off. Companies like these get tax relief when you get a management company involved so even though you are paying less back they write it off. Good luck Keith

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