Jane Y asked:


Okay. I graduated college in 2006. I am working for the university and have a pt job. I had to buy a car (Living in LA, you must have a vehicle).

The car and student loans I can deal with. It’s the stupid credit cards that are causing me to drown… I can and have made ALL my payments and I am not late, but after all the bills are paid, I literally have $106 a week to live on.

So, to make ends meet I buy gas and junk on credit.

Here is a little break down of what I owe:

28K credit cards/personal LOC
17K student loans
9K car loan

TOTAL is approx 56 K.

I make about 35K a year, but I have to live, typically on Credit Cards.

I have looked into two companies (Nova Debt, and Freedom Debt Solution)

One of them (NOVA) said I could pay off my credit cards in 4 & 1/2 years by paying 700 a month. But all my accounts would be basically closed/frozen. Q: Would that mean my “credit” would not longer be good? Would it affect my credit score?

Freedom Debt Solution is a company that basically has you stop paying your creditors, then tries to negotiate with them to settle your debt for a fraction of the cost. Again, it would freeze/close my credit cards and wreck my credit.

Keep in mind, my credit score is good! I have never been late and I always make min payment plus $10.

I also live with family and pay no rent. I’d really like to be able to move out and on with my life. With the job market, it’s not looking good for me to find a new job anytime soon, tho I am looking.

I need help. I am totally open to questions, comments, concerns.

Steven