Repair Credit Report Help

How can I get out of debt and repair my credit while unemployed?

I'm 30-something, have been unemployed for 4 months, ran out of money and am close to being booted onto the streets. By trade I'm in IT/Customer Service but am having a hard time finding a position in this market. Even normal jobs are tough to come by in my area. I have contacted all of my creditors regarding my unemployment status but they basically all told me, "You'll go to collections", so now I've not been able to pay my minimums for months, my score/report is negative to the hilt, and a lot of companies are making hiring decisions based off of bad credit reports. Obviously, I need to pay the debt and plan to. However, at this point I'm barely able to eat, made too much money last year for gov/state assistance, and am close to being homeless. But the system seems cyclic in nature and even if I explain my situation to the HR screening companies they don't seem to be too sympathetic. I'm working hard to find a plan out of this mess. If anyone can shed some light or even share a story that might help, I'd be grateful! Indebt In TX Apologize for not being more thorough, but I am applying to normal/low-wage positions as well. I've dumbed down my resume/application but most give me the "overqualified" argument. I also have no Unemployment benefits available to me. I'm not expecting any 6 figure job, just some form of active income would be nice. :)

Public Comments

1. pan handling
2. Try to get help from a consumer group. Catholic Charities will help you reduce your bills, even if you are not Catholic.
3. I know people don't like to hear this but any job is better then a good job. Find anything you can. Go to a local employment center where they find daily jobs for you. It might be manual labor for low wage but at least you have an income. Goodluck.
4. not good
5. Blow off the creditors that will not wait. Your unemployment is not garnishable. Best thing is default on the debts and get it over with. Late fees and interest will stop any payments from reducing the debts.
6. I was in your situation recently. I mailed certified letters to each of the creditors explaining my situation, and came upon a payment plan. Tell them you will be forced into bankruptcy if they are unable to make a plan with you, which usually scares them into helping because they will make no money if you go bankrupt. I told my creditors that if the debt was reduced to whatever amount, (like if my debt was 500$, I would say reduce to 300$) and agree to have it paid in full by a certain date. Keep looking for a job--any that will pay the bills. I recently got a job and next month I will resume paying all of my debts. Then when the debts are paid off, you will be able to write another set of letters to tell them you are in the process of repairing your credit since the unfortunate event of you being unemployed, that since you have met the requirements of the previous agreement, ask them to remove any negative marks on your credit, or to note on the account that it was paid satisfactorily. I have lots of info on this, send me a message if you need any more help and good luck! I know it can be a really hard thing to deal with, but you can make it!
7. Find a job that doesn't require a credit check. It is time to lower your expectations. A retail clerk in a supermarket will not have to go thru a credit check. (strange but true). They might drug test you but for most low paying jobs they don't go to the extremes of credit checks. What are you waiting for? Your regular job avenue is closed. Take a detour and get into another field until you have enough money to file for bankruptcy and then a couple of years later get back into your old job. Or work your way up again... If you are good and have a decent education then guess what... Retail Store managers that are recruited from within... don't usually go thru a credit check. It might take a couple of years... but if you are willing to work hard and got what it takes... then there is nothing that can stop you.
8. things like foods stamps and medicaid are based off of your CURRENT income (I have them) so go apply and get the help while you need it! if you were fired from you last job you may qualify for unemployment. and since you have no income you may apply for temporary welfare. I would worry about your current food/bills first and keep paying the min balance until you are okay to pay down more..(once you have a job) then pay down all the credit as fast as possible (don't buy anything or waste money on fast food for a month) and never charge anything you wont have the money to pay off at the end of the month. good rule of thumb if you can't afford it...DON'T BUY IT! credit card debt can be very difficult to pull yourself out of and cards can be very tempting. we use only cash and I divide it up into envelopes and seal them until the bill is due so that they can't be wasted on anything else.
9. Have you tried applying for jobs through temporary agencies? Any friends or family that could loan/give you some money to tide you over? Maybe you should cut your losses and move back home. You could use whatever money that would normally go to rent and apply it to your other bills. There was a time in life when I didn't have a job for nine months. I moved back home with my parents, signed up with multiple temp jobs and started a babysitting/nanny business. I signed up with an online sitter site and borrowed some money to get some flyers and brochures made which I posted at all the upscale grocery stores in the area. I got certified by the Red Cross in first aid and CPR. I joined lots of "mommy and me" sites on the web and advertised my services. Before long, I had more business than I knew what to do with and I was pulling $15-$20/hour. I even thought about expanding to providing transportation services and starting my own afterschool program in my parents' home. Eventually, I got a job in my field , so I put babysitting aside, but I always know that I have that in my backpocket should I need an extra source of income. People always need a stable of good and qualified folks to tend to their children while they're at work or on dates with their spouse. Find something that people need no matter what the economy is doing. Look at your skills set and see if anything matches. You do customer service, right? How about looking at companies that allow you to do virtual customer service from your home? Are you good with animals? How about a pet walking service? Are you good with your hands? What about becoming a handyman in your neighborhood? Do you own a car? Maybe you could get a paper route. What about getting a job at a grocery store or at FedEx or UPS? Can you wait tables? The bottom line is you have to think outside of the box and become really creative with what you can do. I wouldn't give up on my field of interest, but I wouldn't become tied to it either. Do whatever you can to keep your lights on... I was thinking...what about the federal government? They have many positions available that are IT/Customer Service. Try www.usajobs.gov and use the key word "customer service." Homeland Security is looking for folks desperately.
10. Tell them to go ahead and put it to collections. That you have no income now anyway and they can either wait and get all of it someday or sell the debt to a collection agency for pennies on the dollar and lose 2/3 of the amount that way. And your credit is going to take a big hit no matter what. You will have to learn, like the rest of us to save money and pay cash.
11. Get a credit card from local bank and pay it in time. You also can use this service to avoid common mistakes while buiding credit and pre-estimate future scores for different scenarios of payments. - creditreport.fateback.com