I became a single mom with a car payment ($400), mortgage($3200), and a bunch of bills; about $5000 a month to be exact. I was able to pay all my bills for about 6 months then my child became ill and I was out of work for 6 weeks with NO income coming in at all.
I got myself knee deep into Credit Card debt to help pay for those bills. Now I have $26,000 in CC debt and I%26#039;m working my tail off, hardly spending time with my child just to try to pay bills. I can barely make ends meet right now and I have no extra money to pay my credit card debt. I haven%26#039;t paid my cc in 8 months, most of my credit cards have been charged off as a bad debt and/or at collection agencies. My credit score went from 700 to 400. I get calls several times a day, which I do not answer. They have threated to garnish my wages for months now. I really don%26#039;t want to file banruptcy and I%26#039;m hoping for an other option.
What should I do? Can it get worse than it is already?
Thank you for your response
I have $26,000 in Credit Card debt that I can%26#039;t afford to pay and they are in collections.What else happens?
Collectors can call you anytime 7 Days a week between the hours of 8am-9pm in your local time zone. Each separate debt (even if it is a charge off that has been sold to the same company) can garner a call. They may not threaten or harass you. There is no need to be rude to them. They are trying to do the same as you; FEED THEIR FAMILIES. Talk to them and see if they can make arrangements with you within your budget. Normally I wouldn閳ユ獩 suggest this but, if your credit is really that bad talk to them about settlements (where they forgive a portion of the balance and consider the debt paid). This doesn閳ユ獩 look too great on your credit but at least you閳ユ獟l be out from the burden of the debt and can begin rebuilding. If they won閳ユ獩 come to terms request a Cease and Desist Order. (which you may have to provide in writing)
Secondly you cannot do Credit Counseling with debts that are charged off- they are still funds owed but no longer considered 閳ユ竷redit閳?accounts as they have changed hands. Consolidation is an option but any institution that would give you a loan for this will be gouging you for interest charges throughout the life of the loan.
Depending on how the debt is spread out between the various agencies that have your old CC accounts they will more than likely not pursue a garnishment, unless they happen to have a larger amount that is owed, reason being; is it costs them money to process this legally.
After dealing with 3RD Party Collection Agencies don閳ユ獩 you miss the comparably nice Collections people at your bank/ Credit Card Company?
I have $26,000 in Credit Card debt that I can%26#039;t afford to pay and they are in collections.What else happens?
1st of all creditors can only contact you during normal buisness hours monday - friday and if they contact you outside of those hours or on weekends or several times a day - just ask them if the word harrasment meens anything to them.
Be rhude to them ! get nasty because I am sure they are to you....
2nd of all, you could try for a consolidation loan and try to refinance your mortgage to catch things up and make things cheaper
if none of that works then I think your only option is bankrupsy
and as bad as that may seem to you - at least you wouldnt be working yourself into the grave and you would be able to spend time with your child
try to prioratise,and put whats most important to you first !!
I have $26,000 in Credit Card debt that I can%26#039;t afford to pay and they are in collections.What else happens?
you might want to go to a credit counselor and see if they can consolidate your debt so you only have one small payment. negotiate with the credit card companies and see if they%26#039;ll take less. at the very worst, you file bankruptcy, and your credit is ruined for ten years, but if do what you have to do to get back on your feet. i suggest you call legal aid.
I have $26,000 in Credit Card debt that I can%26#039;t afford to pay and they are in collections.What else happens?
If you%26#039;re 8 months past due you%26#039;re probably in a position to negotiate settlement offers in the 50% range. If you do this be sure to get all terms IN WRITING first.....This will still be a negative on your credit reports though...and you%26#039;ll have to add this forgiven debt to your next years%26#039; adjust gross income as the IRS considers forgiven debt like earned income.
I surmise from this posting that you have a high income...so filing for Chapter 7 might not even be on option...Of course you can always file for Chapter 13.......
If you can get this debt down to half ($13K) through settlement offers, you might be able to manage this debt load.
Be sure to STAY AWAY from credit counseling services you see advertised on TV...most are predators looking to take advantage of people in your position.
I have $26,000 in Credit Card debt that I can%26#039;t afford to pay and they are in collections.What else happens?
I am a credit counselor if you do want help let me konw
ryan@robertscreditgroup.com
I have $26,000 in Credit Card debt that I can%26#039;t afford to pay and they are in collections.What else happens?
It sounds like a not easy cracking nut,have a look here,you should find something useful for you.http://debt-consolidation.featured-resou...
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