I am 23 years old and $29,000 in debt. This is a compulation of credit cards, student loans and utilities. I have recently moved back home and am working at Target (I live in a small town and there is little work - I drive 40 minutes as it is) for $7 an hour. I cannot get a checking account, let alone a credit card to consolidate. The majority of my accounts have been handed over to collections. I am taking an active approach and have started making phone calls, but to little aveil. What can I do? Is there a way out without filing Chapter 17.

Hi abcole,

There are many of us who can empathize with your debt situation. There are several ways to get out of debt, and not knowing more of the specifics I will have to offer you more generalized advice.

The most important thing you could probably do at this point is educate yourself. There are many books on how to do this. The two books I recommend are "The Richest Man In Babylon" by George S. Clason and "Rapid Debt Reduction Strategies" by John F. Avanzini.

Read them, absorb them and above all apply them. All the information in the world will do you no good if you don't apply.

One last thing. I think it is better to learn harsh lesson of debt when you are younger rather than older. You are to be commended for wanting to improve your situation.

Hope this helps,
a1successforce

It sounds to me like you were a victim (yes, VICTIM) of our credit system's predatory lending and marketing practices. Lesson learned: Credit is for emergencies, school, cars and houses. Nothing else!

Anyway, I am not lecturing you but the creditor. They are thieves for engaging you in a voluntary debtors prison as student with no income or prospects.

If you are in collections, do what I would do:
DON'T PAY THEM A DIME!

Debt beggars and creditor thieves are the devil. What's the first rule when dealing with the devil? (Don't.)

You need to pay your student loans and only your loans, unless you have other secured debt. Sure, learn the lessons; but, know that they intentionally stacked the deck against you!

There are ways of dealing with collection agencies and debt buyers, both a useless industry operating in a society where their most useful tools have been banned.

Go to budhibbs.com and use his Cease & Desist letter. His site is good reading, and he is a trusted mentor.

If you give me more of your situation, I can give you more specific credit information. Your credit is also repairable.

If you want a list of banks that will not check ChexSystems or credit files, let me know.

Jon
[email protected]

The preceding is not legal advice, is not from a licensed debt counselor, and is not provided to persons from states which providing such information requires a license.