Help With Credit Score - I have really bad credit I want to fix the problem but I dont know what to do should I file for bankruptcy?

I have really bad credit I want to fix the problem but I dont know what to do should I file for bankruptcy?

I think I owe about 20,000 in I have 4 credit cards, 1 repo, 2 broken leases, and utility bills oh and 1 cell phone, but I have heard that paying old debts can still lower my score more than what it already is, I dont want to file for bankruptcy but if I dont where am I going to get 20,000 dollars? It all started when I turned 18 I am 25 now. Is it true that after 7-10 years they just fall off your credit should I pay, file bankruptcy or let it fall off, if thats true? My god mother filed for bankruptcy and was able to rebuild her credit but with my luck I wont be able to do anything I want a fresh start and I want to fix my credit does anyone have advise I obviously dont have alot of money please help.

Public Comments

If I were you, I would try to go another route than bankruptcy. First, you made the debt, now you have to pay for the debt. By turning to Bankruptcy, you may think it is the best idea to solve your problem. But it is not. You will suffer the consequences of Bankruptcy for many years after. There are ways to repair your credit situation. You just have to take the proper steps. You need to contact all your credit cards and make arrangements. Many will allow you to pay $10 per month and stop accruing interest until you catch up. Too many people look to BK as a solution to their problems. Those people don't realize the ramifications of filing not only for yourself but for other people. When companies lose money, people lose jobs, lose raises etc. It all plays a part. By making your problem other people's problem (by filing BK) your taking away something from someone else because you messed up. Take responsibility for your actions.
You can rebuild your credit after bankruptcy but it will always follow you around and will always be a "high risk" candidate to finance companies. Perhaps consolidation would be a good option. You could secure a low interest loan to pay off all your credit cards etc and then pay one lower monthly sum after that (obviously avoiding any credit cards until your all paid up). Alternatively you could try to get your monthly repayments lowered by contacting the companies but realistically I can't see that being very useful as you'll just be extending how long you're making payments for. The best thing to do is contact the companies, most have a financial solutions unit which can advise you or a charity like the citizens advice bureau or consumer credit counseling service.
You could contact your creditors and negotiate with them. Often you can get them to lower the interest rates. You can also talk to a credit counselor at a non-profit credit counseling service. National Association of Credit Counselors has a list of counseling services (nfcc.org) A credit counselor can negotiate with creditors on your behalf and often get interest rates reduced as well as late fees and over-the-limit fees. They can also help you set up a budget. Just make sure to find out the fee before hand. I would try these options before bankruptcy. Good luck!
The bankruptcy laws changed and it is not so easy to erase debt now. They may help you restructure it, but if you have income then you will have to pay it off. You can work with the credit card companies or consolidate your loans without bankruptcy, and paying them consistently will raise your credit score. Try to improve your score by paying consistently and lowering the balance, then you might be able to negotiate even better terms as your credit scores improve. A bankruptcy will only damage your score further.
Credit cards have become a necessity in society nowadays, you can't go anywhere without having to use one. That's why it's imperative to maintain a goodquestions are often being asked and yours is just another one.