Debt

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Dear Penny
Hey, friends! I hope you’re all staying safe and healthy during these trying times. This week, I’d like to invite you to submit your questions about what coronavirus means for your money here in The Penny Hoarder community group. It’s a scary time we’re facing right now, but we’re all in this together. Send your questions my way and I’ll do my best to answer.Read More...

Topics

Loan

Scott Blank
I used my vehicle for collateral on a high interest loan. The payment is getting harder to make. Is there anything I can do??Read More...
@Scott Blank Any time you can't afford to make a payment, the best thing you can do is talk to your lender about its options for customers who are experiencing hardship. You don't say whether your hardship is related to COVID-19. If it is, make sure you tell them that — and be prepared to provide proof. Lenders are being a lot more flexible than usual about waiving fees and adjusting payments for people who are experiencing financial difficulty due to the virus.Read More...
Last Reply By Dear Penny · First Unread Post

Payday loans

Natasha Alston
I have multiple payday loans due to a very rough finanacial patch. My payday loans are eating up my paychecks and putting me deeper in debt. How to I pay them off quickly when there is not enough money for anything extra?Read More...
Lending tree.com has way better rates and you can roll all your pd loans into one loan. It's really fast to see if your qualify. Also SoFi - Hope this helps!Read More...
I know everyone is trying to give good advice but the article also asked for words of encouragement. I can’t give you any advice as I am not a financial wizard or anything. But I will tell you to hang in there and try to keep your spirits up. I’ve taken payroll loans before and struggled to repay them. I was lucky that the agency I worked for helped me out. I was honest with them and they paid the loans then took 5% of the amount out of my paychecks until it was paid. Maybe this could help,...Read More...
Last Reply By Elon Must Save · First Unread Post

School Loan Forgiveness

I went to college at the age of 40 to get my degree and I went part time so it took me longer than normal. I racked up alot of school debt and have been paying it off. I am now 65 and and retired. I checked into loan forgiveness but am not sure I would be eligible. I worked 37 years for the Federal Government. I only have a little over 9,000 left to pay but with other bills it is hard making ends meet. My loans are through Navient. Has anyone else gotten their loans forgiven?Read More...
I have not, but am in the process of the PSLF program. I would not think you are eligible because you are not working now, however, it never hurts to check. However, income based payments should be very helpful to you. I would apply for that program. I think you should call and speak with someone and explain you situation and ask how they can help. Congratulations on paying off the bulk of your loans! Its a big deal. School can be so very expensive.Read More...
Last Reply By KellyFromKeene · First Unread Post

Student Loan - Public Service Loan Forgiveness (Income-Based) - Payment Decrease?

I just recently sent my information in for the income based student loan program under the public service loan forgiveness program. I noticed that my monthly payment decreased even though my salary increased (modest increase). Does this typically happen after you have been paying your loans for awhile? I have been paying for about 6-7 years now and every year it increased, but this year it decreased.Read More...
Thanks. Didn't think about the interest rate, but I will try and make more payments.Read More...
Even if it has decreased, if you can afford to make the payments you're currently making or were expecting to pay more, I'd make a higher payment. Perhaps the interest rate decreased, and your payment was adjusted accordingly?Read More...
Last Reply By Leon · First Unread Post

Debt consolidation help in Canada

JKO
I have close to 50k in debts, almost half of which is student loans and the other half credit cards. I recently got my first good job since relocating to Canada as a skilled immigrant almost 8 years ago with 4 children, and am trying to be more financially strong. I heard on radio about debt management nonprofits (in the US) that help consolidate one's debts, but have not been able to find any in Canada. I also heard that with debt consolidation, one can get credit card debt renegotiated and...Read More...
I wish I could help (!), but I'm living in the states. Any PH from Canada???Read More...
Last Reply By KellyFromKeene · First Unread Post

Emergency debt

Alisak
At only $740.00 month disability income the $500.00 vet bill will be extremely challenging to pay off before the 28% interest kicks in through care credit. I’m having no luck finding programs, grants, forgiveness loans Ect..I’m considering GoFundMe type platform but know very little about those. My emergency fund was first to go, my credit score is 740. Any tips,advice, links, support, and prayers welcome. I have to take her back to hospital today if she holds out until I get a ride to...Read More...
@Alisak I'm just now seeing this post. Try CareCredit (your vet should have suggested it). You can use it for pet emergencies and anything over $200 can be extended for up to 12 months or more with no interest. I first heard about it at an emergency clinic back in 2013 when I rushed my cat in one night. Also, in 2003, I received help from an organization called FVEAP (a 501 (c) (3) for one of my cats with cancer. Here is a resource link: http://www.felineoutreach.org/Organizations.html Good ...Read More...
Haha yes those bill collectors are the scum of the world and your husband is right they cannot arrest you for not paying your vet bill. Not paying your income taxes is a different story. take careRead More...
Last Reply By sthom · First Unread Post

The Snowball Method for Paying Off Debt

Moore Income
I am curious to know if anyone here has used the Snowball Method for paying off debt and what the results were. I personally have done it a little differently (more like the avalanche method), only because certain credit cards I owe on are still under a "no interest" sign up bonus. To me the snowball method seems like a pretty effective way to do it. What are your thoughts? Have you tried any of these methods? What are some helpful tips you have used to pay off debt?Read More...
@Swayla Monche If you have a secured card that has a $1000 limit and you spend $300 of that limit, you now only have $700 available for spending. When the bill comes you pay back the $300 that sets your available spending limit back to $1000. Does that answer your question?Read More...
I have used the snowball method as well because getting debts smaller debts out of the way first creates positive momentum for me. Then, on to the next and the next. Yes, I'm concerned about the interest rate but not as much as knocking some things off the board.Read More...
Last Reply By GinaH · First Unread Post

I Need Debt Consolidation Knowledge

Bob Swift
I was reading this article but I did not find anything related to debt consolidation . I want to get a brief knowledge of it. Once I visited and they were saying through their article that before consolidating multiple debts you need to take the advice from an expert in this field, technically they were right. But I want to make the decision about whether I should go with this theory or not. Look my background is bio-science and I don't know much of it. I need knowledge, not any advice.Read More...
I am proficient in Debt Consolidation Loans! I have gotten all different types. Loans from credit unions, loans from Lending Club, Best Egg, Upgrade, etc. I've also refinanced my car before to use to consolidate my debt. My biggest piece of advice to give you is, choose a loan that doesn't have an origination fee. My experience with loan sites like Lending Club, Best Egg and Upgrade are that they take a big chunk of money as soon as your loan is approved. That means, if you have a specific...Read More...
Instead of consolidating your debt, you might want to look into a debt relief program. I worked with Freedom Debt relief and paid off $35000 in credit card debt in 3 1/2 years.Read More...
Last Reply By Hanna · First Unread Post

Credit cards consolidate

Teixeira Mitchell
What is the best company to work with to consolidate my credit cards. I have about $5000.00 in debt, and I'm unemployed now.Read More...
Thank for the information.Read More...
I used, and still recommend, Greenpath. They are a not-for-profit agency and work the same way as what Tara said above.Read More...
Last Reply By Teixeira Mitchell · First Unread Post

Writing

Gary Kleinberger
Im an unpublished author who is good at what i do who wants a book deal. Its hard if you dont have funds to self publish since tryin to find these do it all for you publishers is a miracle. What can i do? Been writing and waiting for 20 years. Tried myself before i have an editor who corrects my work. Any suggestions or help anyone? Any publishing company editors who will allow me to show you what i have?Read More...
Check out Amazon's Kindle Direct service. You have the option of publishing eBooks or paperbacks on demand, or both. I believe it's nothing up front and you keep 70% or so of the sales price. There are options to make it exclusively Amazon, or have you retain the rights so you can sell it other places, etc.Read More...
check with community college for class for writers - make connections...Read More...
Last Reply By JeremyM · First Unread Post

Balance transferring

Judi McGraw Vandeveer
Hello: This is my situation, I have 3 open credit cards, Visa, Quicksilver Capital One, and Discover. In total I owe $2,300.00 I was recently approved for another credit card, with a credit limit of $3,000.00, I am also getting a tax return of $ 1350.00. The balances on these cards have all had timely payments, so there's no problem there ,but here is the problem, without going into all the details, I was forced into an early retirement, and I'm currently just living on my widows benefits...Read More...
judi McGraw vandeever, That is quite the predicament you have been put into. There are several things that you need to be working at this point. You didn't give your age and I'm wondering if you are considering your widows benefits as your social security benefits. If not, are you old enough to receive social security. It seems you need to find a cheaper place to live and find a job. As far as putting the three credit cards on the one new one, what are the interest rates? If the interest...Read More...
Save the tax return to live on is my advice. Also I just transferred my balance from my Mastercard to a new AMEX, which had a 0% balance transfer fee and a 0% APR for one year. I googled free balance transfer credit cards to find it. You may also want to check out www.nerdwallet.com for more info. Lastly, check with 211 (United Way), a local church, maybe your local Senior Resource Alliance, etc. for assistance with paying for your rent/groceries. Are you eligible for food stamps? That would...Read More...
Last Reply By dboothe · First Unread Post

Wells Fargo

Mark anthony Gonzalez
Hello i had fallen into hard times but I'm trying to rebound and be a stand up person and do the right thing and pay back my debt but Wells Fargo closed my credit card and a personal loan i had with them and I've almost been paying them back for the past 5 years but was wondering if anyone knows if they have the right to increase the interest rates every time time there is an interest increase by the Fed's since they closed both accounts ? Shouldn't the rate of the apr stayed the same as...Read More...
Mark G, I won't do business with Wells Fargo either. The list of fraud and clandestine activity is amazing..............you and I would be in prison for breaking the law as they did. https://finance.yahoo.com/news...eline-194946222.html Thanks for sharing your fine print though!!! That's great that you found a clause allowing you to close out at the original interest rate you were quoted. I hope it's possible for you to do that. I personally think banks run this country.........ugh!Read More...
Thank you mintjulep so i guess the moral of the story is if possible read the fine print before giving blood to the blood suckers I'll eventually pay them back by the end of the year God willing if he let's me wake up tomorrow one things for sure is I will never ever do any sort of business will Wells Fargo again so long as i walk on God's green earth thanks again , but it does say if you opt out you can pay the remaining balance at the original rate they closed my accounts which they...Read More...
Last Reply By mintjulep · First Unread Post

I have $30k in credit card debt, and I'm unemployed.

I feel like I'm drowning, and I'm so stressed I can't make any decisions about what do to next. Help!!Read More...
I was in your position not long ago and there are programs to help you until you get back on your feet! If you’re afraid of becoming homeless call 211 it’s a federal hotline that’ll connect you with your area’s various organizations that might be able to help pay your rent, then check out your utility provider’s website as most these days have programs they offer to work with you and come up with a payment plan you can afford, & there’s also a wide variety of government programs for...Read More...
I hear you girl! I put Medical debt on credit cards, now I am 19,000 in debt! But, I am paying more than the Min., i make 2 payments a month. Every 2 weeks. Keeps interest down. Went to bear bones, cut coupons, save where i can....hang in there, i am on a fixed income too!Read More...
Last Reply By KLPrx9 · First Unread Post

Car loans

Jennifer Thurs
So my car loan is keeping me from getting a mortgage. My debt to income ratio is too high. I tried getting a small loan for a mobile home and was denied. I dont think I will ever get my own place. Might be stuck in an apartment the rest of my life.Read More...
I bought the car last year. I traded in the car I had which only had 2 yrs to pay off, on a better newer model. So I have a bigger payment and its 6 yrs. The problem is i make a big chunk of my income in tips and its not on my taxes so the banks wont consider it with my income.Read More...
Happy to help if there is a particular question here. How long is the car loan from being paid off? How much are the car payments in relation to your income? There are probably a lot of different avenues that can be taken, try not to let the circumstances define your possible courses of action! There is always a way!Read More...
Last Reply By Jennifer Thurs · First Unread Post

Low income high debt

Sonja Setoute
I had to leave my job suddenly for personal reasons which left me unable to make payments for 6 months until I found a new job. The new job pays less and I'm barely about to make payments on one card/loan. How do I handle this?Read More...
I don't think I have ever been in that position. I don't use credit cards unless I have to for medical issues.Read More...
Last Reply By MsKimberly · First Unread Post

How do I build my credit with a credit card?

Swayla Monche
Hey, I need more information on how does building credit with credit card works? I never understood it. What does it mean to only spend 30% off the card? If that makes sense. Anyone with accurate info about this would be greatly appreciated.Read More...
Simply put, use the credit card, make payments on time and keep the credit utilization under 30% of the credit limit. The longer you do this the higher your credit score will go. Credit scores are based on several factors, on time payments, available credit and credit usage are 3 of them (there are more, age of credit, type of credit, etc). Basically, if you have a card with $1000 limit, use up to $300 of it and try to pay it off every month (or at least make the min payments on time). It's...Read More...
Hi @Swayla Monche ! We published some articles on The Penny Hoarder that breakdown exactly how to use a credit card and how it improves your credit score. I'm including those articles below, so you can take a look. 5 Steps to Building Credit and Staying Out of Debt With Your Credit Card This article outlines how to use a credit card to build your credit. Tip #4 outlines a little bit about the credit utilization score. Dear Penny: I Have No Credit History. How Do I Get Started? Here's a Dear...Read More...
Last Reply By JeremyM · First Unread Post

Should I do a balance transfer

Christine Corsaw Van Duys
I have a balance with a credit card with 20.74% interest rate. I have a credit score of 765. Would if be helpful for me to get a new credit card that offers 0% for 15 months? I really dont want to mess up my credit score if I open a new account.Read More...
You will really want to read the fine print on the 0% for 15 months. A lot of times the rate after the promotional period is higher than what you're getting now. But, if you are able to pay off the transferred balance before the promo period, then you would be fine. Like suggested, call the card you have and see what they can do for you first.Read More...
I would ask the current card company for a change in my percentage rate if you have been paying on time and your score is what you say. Ask them to lower it to keep you.Read More...
Last Reply By JeremyM · First Unread Post

raising credit (FICO) using the snowball effect

maria rose
I recently questioned Pennyhoarder about the sudden hit to my credit (FICO) score, which I thought had to do with Synchrony Bank taking over 6 of my credit cards. I decided to not use (unless totally needed) every one of those cards until I eliminate the balances, using the snowball method. Using a credit simulator, this effort should show some (not much) increase in my FICO score, even with excellent no missed payments. I found out today, that this is a result of a change in what is...Read More...
I agree. I am not spending anything on that card. I just want it to pay off that medical debt.Read More...
You must have opened a CareCredit card which is basically like those installments payments ( supposedly without interest for a given period if you pay it off), usually an 18-24 month time period. If you don’t completely pay it off, you get all the interest from the start added on. Synchrony Bank is the first bank that switched to the new Vantage Score system for credit scoring. Hey I am looking at this way (to stay positive), they are losing my business ( the companies who are using...Read More...
Last Reply By MsKimberly · First Unread Post

Student Loan

Gia S.
I have had a outstanding student loan since 1986! They are now taking 40.00 from my SS check. Is there anything I can do since the school was bogus to begin with, and closed down a few years after it opened. ThxRead More...
The best thing you can do is contact the loan carrier and see what your options are. You most likely would qualify for a income based payment which may be lower (or $0) than what is being taken. As for the school closing, it makes no difference unless you went during the years of the current Corinthian College situation. Honestly, you can do online surveys and make more than $40 a month to compensate for what they are taking and more. I make around $100 a month just doing them about 10 hours...Read More...
Last Reply By JeremyM · First Unread Post

Son has gotten himself into a credit card mess!

PS
Hi there all! New year, new member! I am writing for advice on how best to help my young adult son navigate his way out of $4,000 worth of credit card debt. If you have been , or know someone who has been in this situation, what strategy worked for you/them? What do you all feel about debt consolidation loans? We really need help directing him as the stress of this debt is causing him some major anxiety and panic attacks. Any suggestions/advice would be greatly appreciated!Read More...
I'm in this situation now, partly due to the high-paying job I had disappearing right after I took out a loan to pay for a vacation. I'm working two jobs and throwing what I can at my debt. I used a credit counseling service to deal with one card and the other one I'm paying all the money from my side hustle--let's just say if you can find steady work writing can be very lucrative, but get your contract in writing! Anyway, getting into debt is easy, but getting out takes some hard knocks and...Read More...
@REDCATCEC It is interesting, isn't it? We teach our children to the very best of our ability, lead by example to model responsible behavior every single day and yet, as you say, they need to be ready to receive the message. It is tricky because they have the missing piece: free will. I have two sons. You've heard about the one and his journey with credit cards. The other son has an opposite "problem", if you will: he won't use the one card he has because he doesn't believe in using money...Read More...
Last Reply By BeckAtsila · First Unread Post

Refinancing without a co-signer?

Gabby
Hey folks. I'm 24, with a little over 11k in student loan debt. I've heard a lot about refinancing, but everywhere I look to get decent rates I need a co-signer and I don't have anyone I could ask to fill that position. I've done well; even managed to pay off 3 loans over the past few years but I'm interested in how much I could be saving. Even just a personalized loan option with a lower rate would be appreciated. Any tips/recommendations? I've managed to pay off my previous loans with some...Read More...
First, I want to commend you for paying off 3 of your loans! Congrats! Beware of those personal loans that promote low interest rates. I was approved for a Discover personal loan $35k @ 14.99% apr my monthly is $675. It looked like a good deal at the time but when I look at my statements for the past year, I’m paying a average $415 in interest and $260 in principle every month. I recommend to keep doing what you are doing... ...or you can apply for a credit card that mails you checks for 0%...Read More...
Last Reply By J. Caldz · First Unread Post

Student loans

Rehemom4
Does anyone have advice for out of control student loan debt? I can’t afford the monthly payment no matter what plan they offer.Read More...
Income Based is a great concept unless you live in an area with a high cost of living. I live in Seattle, my rent alone is half of my take home pay, not including sewer, water, garbage and electric. Because i need public transportation I live in the area I work and looked for an apartment for a year before finding one I could "afford". Scary out here!Read More...
Yes, I second @JeremyM . IB plans have saved me and are more than reasonable. The interest continues to build, and so the debt goes up. but for the time being, at least you can make payments and be in good standing. If you are in default, there is a process you have to go through in order to be eligible for IB plans. I recommend that you go through the process. It may be a rough 4 months (if I remember correctly), but again, it is worth it.Read More...
Last Reply By LAC · First Unread Post

Online personal loans

I recently have fallen on hard times and was forced to take two $2500 personal loans online high interest-rate large payment what’s the best way to get out of it themRead More...
You don't state whether or not you're still struggling, but the best way to get out of any situation like this is to pay more than the minimum, even if it's only one one of them until it's paid off. You could call them and explain the situation. They might work with you, but honestly, I doubt it. You will need to take a long, hard look at your budget. If you can't reduce your debt enough to find a little extra, then you need to find a way to increase your income, even if it's only to pay...Read More...
Last Reply By JeremyM · First Unread Post
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