I am several years out of college, with massive debt delinquency. It’s gotten to the point where I don’t even know how my debt is spread out. I was first scared by the bills that were arriving and I was unable to pay after failing to secure a good job. My credit has taken what seems to be irreparable damage.
What is my best bet for turning my situation around? How do I tackle debt spread across several different collectors when I hardly make enough to live? Should I consolidate the debts? and If so how does one go about that?
Please update me in the comments below so I can better assist you.
It’s not clear how much debt you even have. You might not know. If not then the best thing you can do is open the bills that arrive let’s start keeping track or go to annualcreditreport.com and get copies of your credit reports to at least see what is being reported. Credit reports are not all inclusive of all debts but they can be pretty close. Once you can post an update with some of that data you can then make a better decision.
Your first point of attack should be in hunting for that better job. This is often made difficult because of the depression and despair people feel when in debt. It’s hard to shine when you are feeling extinguished.
Once the job situation has been tackled then you can decide what is the best way to deal with the debt. You can look at my Get Out of Debt calculator to see an overview of options.
Frankly in a situation like you describe, bankruptcy is often the fastest way to start rebuilding and least expensive way to a fresh start. See Those That File Bankruptcy Do Better Than Those That Don’t.
By the way, the credit score is easy to repair once we have a solution in place to deal with the debt.
But let’s not get too far ahead of ourselves here. Gather the data and then update me below.