I COULDN'T PAY MY CREDIT CARD BILL FOR THE FIRST TIME IN 17 YEARS TODAY. I AM FREAKING OUT. WHAT ARE MY SMART OPTIONS PLEASE?

[slavenomore]

I COULDN'T PAY MY CREDIT CARD BILL FOR THE FIRST TIME IN 17 YEARS TODAY. I AM FREAKING OUT. WHAT ARE MY SMART OPTIONS PLEASE?

 

What would you do in my shoes?

 

BK? Debt settlement? OTHER?

 

Bottom line:

 

60K in debt all unsecured, except $800 in IRS. NO ASSETS.

Paying $1200 in CC min/m

Expenses: 3972/m + $1200 in cc min = $5172/m

Income: $2800 M average for last 6 months (gulp!)

 

BACKGROUND NUMBERS:

 

Self Employed 25 years. Long Recession is finally killing my business.

Even long term clients are now leaving. GF, and Dad in an out of

Hospital/ 50% of time/expense/energy spent doing service (caretaking).

 

NEVER MISSED A PAYMENT IN 17 years. Perfect credit.

Fico 780 all three CRA's 3 months ago/ now 650

CC all maxed out.

Paying $1200/m to 6 CC just for minimums.

This week I had to choose health insurance or CC. I chose my health ins.

 

So for the first time in 17 years I missed a payment on 3 credit cards.

 

INCOME = a paltry $2800/m AVERAGE for last 6 months, I am working my flowers off to get new clients, I get one new client and lose 2. I love my job and will keep working toward increasing income, Also my job is phone based consulting

So it allows me to caretake my father and GF at the same time.

 

EXPENSES/m = $3872 without CC min.

+ $1200/m with cc minimums = $5172

DEBT: $60,700

$58,800 CC debt - 6 cards.

1,100 medical debt

800 IRS PAST DEBT

Total Debt: $60,700

 

1) I have reduced expenses as much as possible.

2) my cc are maxed out

3) I am trying to increase my income, but my caretakeing role does not allow a second job at this time.

 

What are my options please? Al constructive comments welcome.

 

Thanks!

 

SNM

[1nce on top]

I COULDN'T PAY MY CREDIT CARD BILL FOR THE FIRST TIME IN 17 YEARS TODAY. I AM FREAKING OUT. WHAT ARE MY SMART OPTIONS PLEASE?

 

What would you do in my shoes?

 

BK? Debt settlement? OTHER?

 

Bottom line:

 

60K in debt all unsecured, except $800 in IRS. NO ASSETS.

Paying $1200 in CC min/m

Expenses: 3972/m + $1200 in cc min = $5172/m

Income: $2800 M average for last 6 months (gulp!)

 

BACKGROUND NUMBERS:

 

Self Employed 25 years. Long Recession is finally killing my business.

Even long term clients are now leaving. GF, and Dad in an out of

Hospital/ 50% of time/expense/energy spent doing service (caretaking).

 

NEVER MISSED A PAYMENT IN 17 years. Perfect credit.

Fico 780 all three CRA's 3 months ago/ now 650

CC all maxed out.

Paying $1200/m to 6 CC just for minimums.

This week I had to choose health insurance or CC. I chose my health ins.

 

So for the first time in 17 years I missed a payment on 3 credit cards.

 

INCOME = a paltry $2800/m AVERAGE for last 6 months, I am working my flowers off to get new clients, I get one new client and lose 2. I love my job and will keep working toward increasing income, Also my job is phone based consulting

So it allows me to caretake my father and GF at the same time.

 

EXPENSES/m = $3872 without CC min.

+ $1200/m with cc minimums = $5172

DEBT: $60,700

$58,800 CC debt - 6 cards.

1,100 medical debt

800 IRS PAST DEBT

Total Debt: $60,700

 

1) I have reduced expenses as much as possible.

2) my cc are maxed out

3) I am trying to increase my income, but my caretakeing role does not allow a second job at this time.

 

What are my options please? Al constructive comments welcome.

 

Thanks!

 

SNM

[1nce on top]

Your credit is good now you obviously cannot service the debt, do you have 3-6 months emergency funds... if no then I would say you are a great candidate for bankruptcy; the bottom line is your credit is good now if you file bankruptcy now it will damage your credit in the short term but will allow you to sleep at night. If you choose you can take the long route and let the debt age and wait to settle at a later time thats what I did. My credit however was already in the toilet due to a pending foreclosure I ended up short selling and that gave me a jumpstart toward a renewed spirit in making right with my creditors. Complete the math problem you already started; It looks like to me you need to make about 90K a year to just break even. you need to apply atleast another 1k a year toward you unsecured debt principal to have it paid down in 60mo. Bankruptcy will be painless for you if you have no assets. The day after you file you will find that it seems like you suddenly had a windfall of cash remember before you were barely making it according to your last 6 month average math.

 

GOOD LUCK!

[slavenomore]

thank you so much for your wise council, I absolutly agree with needing to make 90K, i need to increase my income or nothing will change.

 

I am absolutely commited to:

 

1) reducing my expenses as much as humanly possilbe

2) increasing my income,

3) getting rid of my debt, by settlement or BK

4) doing whatever it takes changing my ways that got me into this mess.

 

but my reality at present is I am 65K in debt with expenses of 5K a month with CC payment of $1200, and $2800/m in income with no assets.

 

I dont see a way out with except debt settle ment or BK, is there any other way out?

I could perhaps borrow 10K at 10% from family, which is pretty scary if i dont increase my invome.

[IAmOnMyWay]

See if your dad qualifies for state funded medical insurance it will cover getting a home health aide or other assistace to help out with the care of your dad so you can devote more time to work and/or explore other career options. ( It may depends a little on his assetts). Finamcially you are in a tough situation but there is no way you can luve on your current and ever decreasing income and carry that debt. It sucks, I've been there. Good luck!

[jtm1848]

Talk with a bankruptcy attorney. Soon.

 

What state are you in?