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Possibly soon to be in WAY over my head

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Hi all. I'm not sure that this is the correct forum, but it seemed the closest to me.

I am currently on Social Security disability, my wife is working, but will have to take a 4-5 week medical leave next month. She is not covered by FMLA, so there is a possibility that dhe will not have a job after her leave.

We have approx $20,000 in unsecured credit card debt, all cards in my name. With my social security and her income, we have been keeping current on all card payments, which average about $400.00 total for all cards. The interest rates on all of the cards are below 9% (appearantly not teaser rates, as they have stayed at that rate for years, couple of Citi, Chase, and BOA). That is one of my concerns, if I am late on any of the cards, I am sure that the rates will soar.

If we do loose my wifes income, we are screwed as we will not be able to cover the CC payments plus meet our mortgage etc. If that happens, I really don't know how to proceed, it seems like kind of a small amount for bankruptcy, and we probably have enough equity in our home, even with exemtpions for the court to force a sale to cover the CC debts.

What to do, bankruptcy?

Not make payments, and hope CCs offer to settle for less? Of course interest rates will shoot up, possibly eraseing any benefit from CC write off.

I am praying for the best outcome, but I really have no clue on how to proceed if worst comes to worst.

Any thoughts, ideas would be greatly welcome.

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I was able to get into a hardship program with Citi a few months ago when times got tough. I offered them $50/month for 6 months, and they agreed. They turned off the juice, but in order for our account to be active again, we had to pay what we were behind...

My best advice is not to stick your head in the sand! Be proactive and save your credit if you can.

I am not sure, but your account may have to already be in their "in house" collection dept. in order to qualify for hardship. I hope things work out for you.

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