I need some advice about how to clean up my credit

First of all thanks to everyone who is willing to share their advice on here as I have learned so much. Now that I have gotten really frugal and worked on getting our household expenses under control and paying our household bills on time I am ready to take another step but am totally lost.

I need some advice about how to clean up my credit ( with many of my debts being 5+ years old) and how to start building up my credit. We have been struggling to pay $236,000 in medical bills and we also have 3 bankruptcies 7-8 years old ( another story and lawyer naivete on our part) on our credit.

My husband is of the mind since we will never have good credit again at our age (37/45) just to start over from today and live cash only forever so why bother trying to fix it. Pay off our cars in the next few months and then just save money. Me I would like some kind of peace so I don’t have to fear the telephone ringing or opening a strange envelope.

Since our bank accounts are now separate I have a checking and two savings (on line with higher interest rates) even though between them I currently have about $45 that I literally got by quote and quote by nickel and dime. As are most items on our credit report are also separate I would like to try to fix just mine. I already have a wage garnishment out of my check for back state taxes and am afraid of future ones.

So what is the opinion CASH or FIX IT ? Should i get legal help since I am not very strong in dealing with creditors and everybody will have to be worked out on a payment plan basis (even if I have to get a second job) Has any one else made either decision with what results?

My experience with negotiating was to be told I could get on a hardship plan that would lower my interest and waive fees for anywhere from 6 to 9 months. If I wasn’t able to catch up by that time, I was back where I started with loan shark interest. It can be like being on a nightmare merry go round that never stops.

It is usually for alot more than the original credit amount

I’m sorry to say but it is usually for alot more than the origianl credit amount. I owed a credit card company in May about 300. I just started trying to settle my debts and am actually talking to collectors instead of hanging up on them. While I was talking to the collector she said I now owed 900 and something and that they were only going to take a lump sum and that there was no setting up payments. I’m sure yours will be willing to set up payment though so don’t let that scare you. Good luck with everything!

does anyone here knows od a credit counselling who can be relied upon and willing to counsel me online or debt settlement with debts outside US but can be settled in US dollars.

I don’t think they imprison any more but they are capable of garnishing your paycheck. We negotiated by letting them know we were considering bankruptcy….they are paid much less then if you worked with them directly .I read the new laws and it seems they still have a lot to lose if they don’t negotiate with you.If you use bankruptcy you are required to pay back the debt but in much smaller amounts per debt. They lose money this way.

I am helping a friend get out of debt and you can’t imagine the horror when we saw interest rates of 29-32 percent on 5 her cards………….she is over her credit limit and behind.My husbands yells…Maffia sharking!!!!!!!!!!!!!!!!!!

LOL But I sure agree with you about loan sharking. What??? Did the maffia become legal bankers?

We are going to start calling her credit card companies and see if we can get them to come down in interest and also lower the bill.

We have not done this since the banckruptcy laws came in sooooooo we are hopping we still have a leg to stand on.After looking at the laws I think there is stil a chance they will negotiate with us.Any thoughts? You Can get out of Debt!