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Alot of debt,,,any way out??


wvfireman1634
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i have about a half a dozen credit cards ranging in limits betwwen 1k and 7k. My wife lost her job and for the last six months we have been barely scraping by. Its reached a point now that Im not going to be able to pay even the minimum payments. Nothing is 30 days late (yet). What should I do?? Any advice would be greatly appreciated.

Upfront Rewards $7k

Cap One 1k

Chase 2k

Orchard 1k

Citibank 2k

Dell 1500

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Most CC companies do have a "hardship" program. Call them and ask. Don't agree to anything over the phone until you've had a chance to talk to all of them and see what you can work out. In fact, it might be wise to sit down and work out a budget first...figure out what you need for housing, food, transportation, and maybe a little besides...what's left, divide up among you CC's. That way you'll have a figure in mind when you call.

Realize that these hardship programs only run for 6 to 12 months, and the consequences of not following through can be harse. Make sure it works before you agree.

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  • 2 weeks later...
i have about a half a dozen credit cards ranging in limits betwwen 1k and 7k. My wife lost her job and for the last six months we have been barely scraping by. Its reached a point now that Im not going to be able to pay even the minimum payments. Nothing is 30 days late (yet). What should I do?? Any advice would be greatly appreciated.

Upfront Rewards $7k

Cap One 1k

Chase 2k

Orchard 1k

Citibank 2k

Dell 1500

A point to consider:

What is a realistic outlook for your wife's future. Do you think she'll be employed relatively soon? What I'm getting at is this: If your personal situation has yet to bottom out, and you don't forsee the need for credit over the next few years, and I hate to say this, but it is reality, you might be better off not paying a dime from this point forward. Basically, you don't want to get to a point where let's say, 6 months down the road, she's still unemployed, and you're still scratching by, to the point where you can't even make the hardship payments anymore, and end up defaulting on those accounts. If that happens, all that money you strugged to give them, effectively, goes up in smoke, and you're still left holding the bag with crappy credit, collection accounts, sans your cash of course...

Again, I don't like this route, and would advocate against it at all costs, but it's the cold hard reality of it. Credit triage. A variation of this happened to me, I lost my job, moved to another State, and the best job I could find in the new State paid 40% less than where I was at. I had about 6 CC's with minimum payments I could no longer reasonably afford, even with their hardship programs. It's a tough decision to make and come to.

Again, I don't really suggest this, it's only appropriate for a limited number of scenarios, but worth contemplating nonetheless.

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Since nothing is late yet, do you have the credit scores needed to get a personal or home equity loan? You may fare better getting a loan to cover all of the CCs and then pay back the loan company. You should have lower payments this way.

Exactly what I was thinking. Try a credit union and see what they could do for you in terms of a loan. Let them know the situation and they may be able to work with you to give you the amount needed.

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