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Thread: Starting over and rebuilding

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    Dizzy Starting over and rebuilding

    I have been in many facets of the industry for the past 13 years. Without airing out too much of my dirty laundry, I have made some financial mistakes in both business and my personal life. I apparently like leaning the hard way lol!
    I have ended a 13 year long relationship recently. I am starting over. I am excited but I must tackle my financial situation and repair it.
    I have no rental history and no credit. I know this will make looking for a place of my own difficult. I am saving up as much money as I can.
    As far as my credit, I had about 10k in credit card debt that is past the statute of limitations. I applied for a second chance bank account about two years ago. I was approved for a normal bank account but was not approved for a credit card. I am able to apply for a secured card and will do as soon as possible. Is it a good idea for me to apply for more then one secured card?
    I need to rebuild my credit within a timely manner. I have read about getting a loan simply to pay it back within a few months from a bank or check cashing business.
    Also, the credit card debt that is past the statute of limitations still worries me, what can I do to clean up that situation.
    It has been a very difficult time but I am remaining positive! I look forward to working on my situation and moving on with my life. Thank you in advance for any advice!

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    Default Re: Starting over and rebuilding

    Did you save any money?

    If you can obtain a credit card, you should use for every day purchases, like food and gasoline, and pay the full balance every month.

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    Default Re: Starting over and rebuilding

    ^I don't think another credit card is the right idea, if she's already having issues with debt. Yes, it's good to build credit, but maybe wait a little bit until your finances are more secure. You don't really need credit history that badly, unless you're trying to make a big purchase or get approved for a loan, which I wouldn't recommend right now.

    OP, you're definitely not alone. For a living situation, you can often use your bank statement or pay multiple months in advance, rather than doing a credit check. If you're okay with roommates, you can easily find someone to rent you a room in their place. Craigslist is great for this. If you're really desperate for a place to live, you can also ask family or friends to sleep on their couch for a couple weeks while you save up.

    Prioritize your spending. Your most important expenses are food and a place to live, so decide how much money you need for food, and how much you think you'll need saved up for an apartment. Put that money in your bank account and don't touch it.

    Once you have your basic needs met, you can start paying off your debts. I'm assuming they're still collecting interest? It's best to get those paid down as quickly as possible. If you have a relatively stable income, I'd recommend setting up autopay on your loans so that every month, you know they will be paid off. For me, autopay helps take away the issue of forgetting/not setting aside the money to make monthly payments.

    You'll climb out of this. It just takes time.

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    Default Re: Starting over and rebuilding

    Quote Originally Posted by ComaRose View Post
    I have been in many facets of the industry for the past 13 years. Without airing out too much of my dirty laundry, I have made some financial mistakes in both business and my personal life. I apparently like leaning the hard way lol!
    I have ended a 13 year long relationship recently. I am starting over. I am excited but I must tackle my financial situation and repair it.
    Good for you!

    I have no rental history and no credit. I know this will make looking for a place of my own difficult. I am saving up as much money as I can.
    As far as my credit, I had about 10k in credit card debt that is past the statute of limitations. I applied for a second chance bank account about two years ago. I was approved for a normal bank account but was not approved for a credit card. I am able to apply for a secured card and will do as soon as possible.
    Capital One has the best secured credit card in the industry right now. It does have an annual fee, but it's the lowest of the bunch. No monthly fees. And the deposit is reasonable.

    Is it a good idea for me to apply for more then one secured card?
    No, one is good enough. Save as much money as possible. I would open a savings account at your bank. Consider a credit union or if you are eligible, join USAA and open a checking and savings there. Save until you have at least three months of required expenses (rent, utilities, bills, groceries gasoline and car payments) in the savings account. Then think about broadening your horizons.

    I need to rebuild my credit within a timely manner. I have read about getting a loan simply to pay it back within a few months from a bank or check cashing business.
    Only do this if they report to the big three credit reporting bureaus. Check cashing places are sketchy, I would avoid them if at all possible.

    Also, the credit card debt that is past the statute of limitations still worries me, what can I do to clean up that situation.
    Do two things, find out if these old accounts are on your credit report. Second, do these old accounts come from the big credit card issuers, Citi, Chase, Capitol One, Amex? If so, it may be worth offering them something to compromise the debt, but contingent on them giving you a new credit card. (They have their own records and don't depend on the credit reporting agencies. Thus, they will often deny you credit if you welched on them in the past even though the statute of limitations is long gone.)

    HTH, XOXO
    Z

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    Default Re: Starting over and rebuilding

    Quote Originally Posted by ComaRose View Post
    I have no rental history and no credit. I know this will make looking for a place of my own difficult. I am saving up as much money as I can.
    As far as my credit, I had about 10k in credit card debt that is past the statute of limitations. I applied for a second chance bank account about two years ago. I was approved for a normal bank account but was not approved for a credit card. I am able to apply for a secured card and will do as soon as possible. Is it a good idea for me to apply for more then one secured card?
    I need to rebuild my credit within a timely manner. I have read about getting a loan simply to pay it back within a few months from a bank or check cashing business.
    Also, the credit card debt that is past the statute of limitations still worries me, what can I do to clean up that situation.
    I've gotten tons of apartments before I had any credit, and most of my landlords changed their numbers so I dont have a traceable rental history either. Look on craigslist for small apartment complexes or people who have renovated homes to be split up into apartments. Avoid those huge apartment complexes with on-site management, they often have way more requirements and will check your credit. Most independent landlords will only require proof of income and a deposit, and maybe a check to make sure you have no evictions. If you have trouble finding a place, then save up 3-6 months of rent in advance and offer to pay up front rent.


    I know you're in a hurry to rebuild your credit, but unless you are trying to get a house or a car loan right now (which you should not be!) you really have no reason to rush. I would seriously advise against getting a loan just to pay it back.

    You need to decide if you will pay off the debt or if you will let it expire from your credit report. Your debt is past the statute of limitations which means they cannot sue you for payment anymore but it will still be a negative mark on your credit report for 7 years. After 7 years, your debt will no longer show up on your credit report-- it doesn't mean you don't owe the $ still, it just doesn't effect your credit score anymore, and because the statue of limitation is up the credit card company can't do anything to force you to pay other than call you all the time.

    However, if you begin to make payments on the debt, or acknowledge the debt is valid in any way, the statue of limitations will restart and they can sue you for your debt again. Depending how close you are to 7 years, and considering 10k is a very considerable amount of debt, you need to seriously ask yourself if paying back that 10k is worth fixing your credit score for the next few years or if its a better idea to just wait the 7 years.

    A secured card would be fine as long as you are able to pay it off in full every month. I would suggest using it to auto-pay your phone/insurance/utilities/internet bills ONLY and pay it off before the bill date every single month. I would use for cash for everything else (gas, groceries, rent, etc) because it is easier to keep track of. Perhaps part of the reason you have 10k of credit card debt is because when you were spending that money it probably didn't seem "real" to you-- which is why cash is your best friend.

    Make a monthly budget of savings, rent, utilities and bills, money for groceries, gas, and a small amount of slush money for going out/restaurants/clothes. Divide this money up physically in separate envelopes or even a separate safe for your savings so you're not tempted to touch. Do not go over your monthly allowance for groceries and slush money. If you need to divide it up into weekly amounts, thats fine too. If you run out of money for that week then oops, i guess you're stuck eating out of your pantry and staying home until the new week starts. If you want a big ticket item then make a new envelope for it and at the end of every week put your leftover grocery & slush money into the envelope until you have enough.

    If you do decide to pay off the debt, then I would first save up 3 months of living expenses for emergencies and then begin to pay off as much as you can every month. Be consistent and persistent. You should definitely try to negotiate before you start paying it off-- they might make you a deal where they'll remove the debt if you pay off a certain % of it.
    Do your future self a favor and work hard now.

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    Default Re: Starting over and rebuilding

    Thank you all so much for the amazing advice! Just to let you know more about my scenario
    I had very delinquent credit, I held on tight lol and all bad debts fell off of my credit report due to statute of limitations. When I opened my bank account two years ago, absolutely none of them showed up on my credit report. This is a relief, but I know these bad debts can still haunt you in the long run. I know that I absolutely cannot respond to any past creditor in any way shape or form because I will be acknowledging the debt, then they can start with collections again. At the moment, all bad debts have expired from my credit report!

    I will either apply for the capital one or wells fargo secured card. I have heard that getting the deposits back usually does not happen as quickly as these companies claim, but usually within a year or two you will begin receiving credit card offers from other companies, anyways.

    I have done a lot of research and my goal is to keep the secured card at under 20% utilization rate and ensuring this by making a payment before the card reports to credit bureaus. I have found this date may be different then the date your bill is due.

    I would like to get an apartment of my own, and have found several options that are affordable and require minimal deposits...so if I must pay more upfront due to my credit situation this is attainable. I have looked at rooms for rent, etc...at this stage in my life after the relationship I have had I do not want to answer to anyone but myself. If worse comes to worse, I will rent a room in someones home for 6 or so months only to save up more money. Rooms in Vegas in others homes have gone up in price, mostly between 4-500 a month on up. For this price, I can get a studio apartment in a decent part of town.

    My situation...yes I have made a few mistakes having his name on everything (car, rentals) but I did this so creditors were unable to find me, etc. I have a very good head on my shoulders other then being in a bad relationship...I have a budget, uber organized business and personal expenses folders, etc. I was the bread winner and pretty much in full control over my own finances, however due to this I also assisted the ex with rent/bills as necessary. I do owe the irs some money and it was my own mistake, I have taken full responsibility for this and have since learned from my mistakes. I make estimated tax payments on time, I have a business bank account and did old skool spread sheet book keeping for years, but just switched over to quickbooks self employed...I recommend it to everyone. I have a little savings and my living expenses are so minimal now that he is fully responsible for his own finances. Sadly, I must continue to live with him for about 6 months so I can save up as much as possible! It has been difficult but we are both civil with each other. I know I have hurt him and that is the most difficult part...but I must look after myself now. We have never been the fighting/arguing couple and in some way shape or form will always be there for each other. I know he is hurt, but understands.

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    Default Re: Starting over and rebuilding

    Get a secured credit card and pay back all of your bills every month on it. Allow for only 30% utilization for it to report favorably to the CRAs. I did this while I was trying to rebuild my life a few years ago and it worked like a charm. I honestly can thank some of the credit boards online for guiding me and helping me to make the right decisions. I would definitely get a secured credit card to rebuild your credit while you try to repair it. Knowing that I was helping myself by building positive, recent credit history helped me to make better decisions.

    During that time, I also opened a $500 secured loan at my credit union for 50 months. They blinked at me when I said for 60 months. lol Anyway, I faithfully paid that for 60 months for under $20 a month. It works to improve your credit history. I think the right place for these questions is on the credit boards.

    Good luck to you!

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    Default Re: Starting over and rebuilding

    Omg OP so sorry you went through that. A lot of people get into financial messes you wouldn't believe. Totally been there! I now only have one last debt to pay for a cc that is just under 500 but I was reading some things online about how you shouldn't pay any remaining balances until you talk to someone. Something about scam agencies and/ or being able to negotiate getting the debt mark removed from your credit!. I will look into that and post links.

    I was wondering if anyone had advice on a situation I'm having. I want to go to this coding school. It's the top school in my city (bay area) and they have 98% job placement, with recent salary averages upwards of 80K.

    The school does not charge a tuition, but a percentage of your first years future salary. Think its like 12 or 18 or something. They do charge a 5000 dollar deposit , I'm pretty sure it's refundable if you finish.

    I'm trying to step up my camming game but I am no where near my 1k week goal. So at this rate saving money is slooooow. I checked my credit report the other day and my score is no bueno. High 500's.

    So my question:
    I wanted to take out a small loan so that I could use it to pay for the program. Knowing what I know, If I get in and complete the program, I will either get my money back, or at least be working shortly after ,and repay the loan. I don't know what kind of loan I could get with my credit, but I know there is something. The program is only 14 weeks so if my loan period is 1 year for a 5k loan, that's not bad. Mpst graduates find a job within weeks because they have a full on job placement service.

    Totally hope I'm not jacking the thread, seemed like you guys were talking about this type of thing though. Love that everyone is so money minded!!

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    Default Re: Starting over and rebuilding

    Quote Originally Posted by ChocoChanel View Post
    I was wondering if anyone had advice on a situation I'm having. I want to go to this coding school. It's the top school in my city (bay area) and they have 98% job placement, with recent salary averages upwards of 80K.

    The school does not charge a tuition, but a percentage of your first years future salary. Think its like 12 or 18 or something. They do charge a 5000 dollar deposit , I'm pretty sure it's refundable if you finish.

    I'm trying to step up my camming game but I am no where near my 1k week goal. So at this rate saving money is slooooow. I checked my credit report the other day and my score is no bueno. High 500's.

    So my question:
    I wanted to take out a small loan so that I could use it to pay for the program. Knowing what I know, If I get in and complete the program, I will either get my money back, or at least be working shortly after ,and repay the loan. I don't know what kind of loan I could get with my credit, but I know there is something. The program is only 14 weeks so if my loan period is 1 year for a 5k loan, that's not bad. Mpst graduates find a job within weeks because they have a full on job placement service.
    I'm a software engineer and I would avoid this. It sounds like a coding bootcamp. They focus on specific technologies instead of foundations, like problem solving. These are more suited for people who have prior CS experience.

    The structure and cost seem sketchy too. Unless they have ties to hiring departments, how could they possibly link participants' future earnings to tuition? Also, the median salary of an entry level software engineer is 109k in San Francisco. So 80k seems low, unless the work they find afterwards is not in software engineering (which is otherwise the goal of people with CS degrees), or they move to other areas.

    If you're interested in programming, there are free alternatives: MIT OpenCourseWare, Khan Academy, Code Academy, etc.

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    WWW Re: Starting over and rebuilding

    Quote Originally Posted by dpacrkk View Post
    I'm a software engineer and I would avoid this. It sounds like a coding bootcamp. They focus on specific technologies instead of foundations, like problem solving. These are more suited for people who have prior CS experience.

    The structure and cost seem sketchy too. Unless they have ties to hiring departments, how could they possibly link participants' future earnings to tuition? Also, the median salary of an entry level software engineer is 109k in San Francisco. So 80k seems low, unless the work they find afterwards is not in software engineering (which is otherwise the goal of people with CS degrees), or they move to other areas.

    If you're interested in programming, there are free alternatives: MIT OpenCourseWare, Khan Academy, Code Academy, etc.
    Hey!
    Thanks. I actually am going through Free Code Camp's map right now and wouldn't apply to the program before being at least halfway thought that. I said upwards of 80k because the 100k salaries they said were only for the last year or two . I guess I was also was a little shook 'cause 100k starting salary is pretty spicy!

    I think they could have some kind of deal with certain places? I am not sure. I will look into it. I was thinking it's like when you go to community college and you are pretty much guaranteed a spot at a CSU as long as you meet certain requirements. Or maybe they just really help you apply for, and interview for, jobs and are really good at it. I don't think there was a flat out guarantee, but I think the wording was something like "98 percent of our students have been employed with these salaries. "

    So you think I should just do the free ones and build my portfolio ? Have you heard of Hack reactor? It's supposed to be comparable.
    This is the link to their page. It actually does say 105k average salary on there!

    https://www.appacademy.io/?utm_sourc...z5VhoCvJ_w_wcB

    I'm not going to get a computer science degree though because I'm still working on my econ degree.

    Thanks for your help!

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    Default Re: Starting over and rebuilding

    Been there. I do a 12 step CoDa support group. They also have debtors anynomous if you need support. Don't feel bad just make the next right choice

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    Default Re: Starting over and rebuilding

    Quote Originally Posted by ComaRose View Post
    I will either apply for the capital one or wells fargo secured card.
    Friends don't let friends do business with Wells Fargo. No one can trust Wells. They have opened millions of accounts in people's names without the customers' permission or knowledge. They have placed credit insurance on an untold number of car loans without permission or even the knowledge of the customer. This was all done because the company set unrealistic goals for loan officers who already had questionable ethics. Those people did what management expected them to do. There has been no major overhaul at Wells. I do not trust them. Go with Capital One.

    XOXO
    Z

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