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Is life hard with bad credit?

I have been out of work for almost a year. I am registered with 8-9 employment agencies, I have applied to countless places, I still don't have a job. I am in California, one of the HIGHEST unemployment rates in the state.

I am one month behind on my car payment, and I am giving up on paying my $30 minimum payment on one credit card, and my $100 minimum on the other credit card. I have already spoken to the credit card agencies, and there's nothing that they can do. They cannot lower the payments.


I can't stand it anymore, I constantly go short on food, and end up eating fish sticks, cup-o-noodles or ramon noodles for 2-3 days just before the next unemployment check. I let my daughter eat the wholesome healthy food.

I dont' see a problem defaulting, and just dealing with the creditors when I have a job. Just 2-years ago, I had a 675 score.

So is life hard with bad credit?

Answer Question
 
Anonymous

Asked by Anonymous at 11:12 PM on Sep. 22, 2009 in Money & Work

Answers (9)
  • i suggest making some sort of payment regardless of if it meets the min. that way at least on your report it will say you are actively making payments, that makes it a little easier to get credit. it will affect you for about 3-7 years depending on what the credit limit on the cards was and how long certain things stay on your report. so just remember though you may not be able to apply for anything right now 2 or 3 years from now when you can afford a new car, you may have a horrid interest rate b/c of the decisions you make regarding it now. call again, tell them you are willing to make half the min payment a month if they keep it in good standing on your report see if that helps, most places are more willing to bend right now w/the way everything is job wise etc, so you may find someone who can help you.
    vabchmommy

    Answer by vabchmommy at 11:22 PM on Sep. 22, 2009

  • Only when I try to live out of my means its hard.


    Parents say it all the time, use cash, and you wont find yourself in that kind of trouble.


    The only suggestion I have for you is getting a lawyer to look at your contracts.


    They very well may find a loop to get debts eliminated or payments lowered more than the company really wants to go.


    If this is a route you might be interested in, consider a Pre-Paid Legal Services Associate to help you sign up for an affordable legal plan.


    It will cost you less than a cup of coffee a day and you get grouped with one of their largest clients(so you are important to them).


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    IraqiVetWife

    Answer by IraqiVetWife at 11:24 PM on Sep. 22, 2009

  • Call consumer credit counciling or another accredited counseling service. They were able to drop our payments to 25% of what they were before AND got us a 2.5% interest rate. unfortunately, they could do NOTHING for us till our payments were 90 days past due. That was also true of the other credit card bill we were trying to deal with, they couldn't do anything till it had made a black mark on our credit already. another place i have heard of is http://www.helpwithmycredit.org/ But I haven't had time to look into it yet.
    auroura

    Answer by auroura at 11:31 PM on Sep. 22, 2009

  • To answer your question, YES. If you need to buy a car, or get credit in the future, you will pay a much higher interest rate...IF...they will even give you a loan. You won't be able to buy a home until your credit score goes back up. Last year when we bought our home we had a 740 credit score, two weeks after we closed the market completely collapsed, and we were told we would have had to have an 800 credit score to get the loan if we had waited!!! I don't know if that's still the case.

    The good news is, you can rebuild your credit in a year or two, once you do get a job and get things back on track. In the meantime, the above posters gave you some great suggestions. Good luck, I hope you find a job soon. (We are also in California)
    ohwrite

    Answer by ohwrite at 11:57 PM on Sep. 22, 2009

  • Only if you want to get more debt. In some ways it might be easier with a bad credit score because it keeps you away from debt and also paying 20+% in interest.


    And ohwrite is wrong. You CAN buy a car and a home without a credit score. It's called cash. And sure it's a pain in the neck to save up for stuff like that-- but at least you aren't paying interest on it.

    Anonymous

    Answer by Anonymous at 3:50 AM on Sep. 23, 2009

  • 675 IS a low score. You've had bad credit all along, what's the difference now?
    Anonymous

    Answer by Anonymous at 8:03 AM on Sep. 23, 2009

  • I agree with PP 675 is low, you probably will not see much difference...
    Anonymous

    Answer by Anonymous at 8:35 AM on Sep. 23, 2009

  • I agree with the 2 above posters, 675 is a bad score. What you should be worried about is getting a judgement placed because that is what will happen if you stop paying on your cards.
    Anonymous

    Answer by Anonymous at 8:56 AM on Sep. 23, 2009

  • Many employers do credit checks so if you do end up with a judgement against you for non payment it could hinder your job search. My sil is having a lot of trouble finding work in her field most of it is because of her credit. She recently filed bankruptcy and lost her home. She had lived way too large then lost her job. She works in accounting so the fact she cannnot manage her own money make people wonder how on earth she can keep track of their books.

    I personally would make other cuts like cable, cellphone, internet and sell things before being late on payments. That said your credit score is already not very good so it may not matter much. You would have a hard time getting a car loan or other credit with that score now. Maybe even have a hard time finding a job.
    Anonymous

    Answer by Anonymous at 10:13 AM on Sep. 23, 2009

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