What JD Byryder does is really just a legal form of theft. They prey on the less fortunate people of society because they are the easiest target to get $$$$ from.
That article is no surprise to me, I actually know first hand what that is like. When I had to personally claim bankruptcy in 2003, because of being laid off due to 9/11, I had to start all over from scratch. I paid 24.99% on a car loan, but it wasn't an old clunker it was a brand new Left over 2002 Mustang GT, Yeah I could of went with a lesser car, but I know I wouldn't have been happy so I bought something new with a warranty and what I like to drive. I paid on that for 18 months, bought a left over 2004 GT in January 05 at 12% Traded that in November 05 for my 06 at 7.9% interest, now I am in an 07 at 5.9%.
I stayed away from CC's during my financial recovery, It was hard but I just cut back on spending, stopped wasting $$$ on **** I hardly used, and for the little extras I would save up for it. I had a good job once I started working again, and I am in a very strong field with better security than most jobs. I was able to raise my credit score 250 points and 3 years after my Bankruptcy I bought a home at 6% interest.
It is a matter of pacing yourself. It sucks at first especially if you were like me, a compulsive spender, but once you set yourself to it you quickly realize how fast you can save up the money for your new toy. I already have a savings account going with about $5000 in it for my next new car in 2009, but the time the car is out I will have almost half the cost of vehicle saved to put down on it.
Best solutions to quick debt relief.
1. Don't let your bills go into collection, if they do quickly make modest arrangements to pay them in monthly installments. If you have a doctors bill of $200.00... paying $50 a month on it is better than the 30 points you will lose on yoru credit score if it goes into collection.
2. If you have crap credit but a job paying a decent wage that leaves you extra cash, go out and buy the car at the higher rate, but make your payments and make the payments affordable. As you pay this type of loan and pay it well, banks will see what you can handle both a high debt and payment so when you go to trade up in the future you will get more car for your payment.
3. Stay the hell away from Credit Cards. In todays world you have to have it for emergency purposes, but keep it for those type on purposes. Don't buy gas on your credit card. If something you need has to be bought on a credit card and it isn't an emergency purpose... then you don't friggin' need it.
4. So you want a new laptop or PC, or WS TV... Oh it is only $2500.00 let me just plop it on the visa. WRONG! If you make $40,000 a year, or even $30,000 it is possible to own that TV and not have to make payments on it. Start a savings account, and do the following. With fall and winter coming the need to be outdoors wasting money tends to take a back seat. If you spent $200 a weekend partying during the summer take that $200 and put it in your bank account... a separate savings account. In 10 short weeks you have $2000.00 That TV you want today will still be there or be replaced by a better version at a lesser price... it can wait.
Even if you have a credit score of 330 (Bottom of the barrel) it is possible to raise that score to a better level fast by making an attempt to pay your bills. Make the arrangements with the creditor, and let them know you will agree to pay this amount every month as long as they report to the bureau your making payments. Every 6 months your score will rise about 20-50 points. It takes a lot of restraint, but it does work. Hey, I have zero will power for things like this, but... I developed it fast and now I realize it is the best thing I could have ever done.
Manage your money wisely. I am not saying at age 22 you have to worry about retiring, if you have a good job you can wait til age 40 to start a 401K and still have a comfortable retirement, but while your young take responsibility of your finances otherwise when you get in your 30's it could make your life a nightmare.
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Originally Posted by Scott
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