Negotiate a Debt Settlement

I am needing GOOD advice on how to eliminate debt.?

I am fixing to get married and we both have pretty bad credit. I have around 8500 in bad debt (4600 in credit cards, 2000 in dr. bills, and rest in utility and misc.) and my fiance has around 25,000-30,000 in debt (13000 student loan, a ton of dr. bills, cell phone bills, utilitiy bills, and other misc) I don't know what to do! We have already started a family and are needing to buy a house and can't get financed anywhere because of our horrible credit. There is just so much, we don't know where to start. I am current on my credit card payments, however, i can only make the minimum payments. Also, I don't know the law for Illinois, but I have a dr. bill on my credit from when i was 17. And I also have stuff on my credit where my parents have used my soc. sec. number for utilities before I was 15 that the companies say i am responsible for. Does anyone have any good advice that can help me?

Public Comments

1. To answer all of your questions would take quite a bit of time. One thing I suggest is talking to a local financial counselor. They're pretty cheap these days and believe it or not some of them are free. You should look in your local yellow pages and I'm sure you'll find someone who will be willing to help you. Good Luck, http://www.ebusinesswiz.com
2. I agree with the first poster; you need a financial consultant. However, if you are unwilling to do so. I would suggest some things. But remember that I am not a financial person, just some suggested advice. You should go to the financial consultant. First suggestion, try going to one of those places that consolidate your debt or something like that. They basically go to the creditors and pay them off, then you pay the debt consolidator company; but you do it at a much lower rate than what the creditors usually charge. Financial counselors do this, like the first poster said. Your only other chance is to quit trying to pay every credit card. If you are only paying the minimum, you will never break free; it is designed to keep you trapped in the debt forever. Instead, start with the credit card with the highest interest rate. Pay them off first. This will limit the amount of damage done each time interest is charged. Then pay off the second highest interest rate and on down the line until you can afford it all again. But remember, this will make your credit look even worse than it does now. You most likely will NOT be getting a house if you take this route; its only to get you out of debt, not to restore your credit rating. Your best chance is the financial counselor.
3. Tell your parents to pay their utility bills or you are calling the cops. That should eliminate the utility. Write to the credit bureaus and ask them to investigate your financial responsiblity with the doctors as you were too young at the time to have signed a financial responsibility contracts. That should get rid of the doc bills. Move into a small studio as cheap as possible, and eat rice and beans and tap water and that will save you guys at least 300 per month or more that can go to your credit cards. Also ditch the cell phone, you dont need it as 20 years ago nobody had cell phones and they managed to survive. That will save you im sure 60 more per month. In about 18 months now you should have everything paid off. You dont have a whole lot of debt. Unless you are making 20k per year, you shouldnt have that much problem paying it
4. Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan. http://debt-trap.com/category/Debt-Consolidation-Basics.html
5. Try Crown.org or Daveramsey.com. They are the best at getting people out of debt. They both teach people how to get out of debt and stay out of debt. If you choose to work either of their plans, it's going to be painful. You may not like what they tell you, but in the end, you'll be debt free!!!
6. The doctor bill from when you were 17 and your parents credit card bills don't need to be paid. When you file your police report and send a copy to the utilities showing you didn't cause the bills and were a minor child they should give up. You probably won't get a house until you pay your debts or several years after you file bankruptcy. The student loans will need paid no matter what else you get charged off or file bankruptcy on. Starting a family with all this debt will make it harder to pay off and harder to save a down payment on a house.
7. my suggesting would be getting as much information as you can before taking any action,here is a good place for that purpose.http://debt-relief.expertips4u.info/bad-consolidation-credit-debt-debt-loan.html