What to do about $56,000 in credit card debt when unemployed?

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sad trombones
 
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What to do about $56,000 in credit card debt when unemployed?

Postby sad trombones » Tue Jun 12, 2012 4:27 pm

Hello I'm new here. I do not know if I am at the proper forum, or website for that matter to seek help with my situation. I am unemployed (seeking work, but no leads). I've made some big mistakes I'm not proud of with money. I have multiple cards from multiple issuers equaling about $56,000. I've stopped paying on the cards on a regular basis starting in December '11 but I've made 1 or 2 payments on each trying to push the charge-offs further down the road. I have about 12k in savings equivalent I'm living off. No income otherwise.

I'm trying to wrap my head around all this and I'm not sure where to go from here. Please point me to the proper forum if one exists so I can ask specifics about charge-offs, bankruptcy(?), the general process that I can expect the creditors to pursue, all that fun stuff. I've always payed my bills on time up until all this.

Thank you for any replies.


MemberSince99
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Postby MemberSince99 » Tue Jun 12, 2012 6:20 pm

Given that you are unemployed and have no light at the end of the tunnel, I mean if you REALLY don't see any work coming, the credit cards are truly the least of your concerns. Do NOT make further payments on them and I would say file for bankruptcy. The ONLY way that is valid is again if you do not have any hope of a job in sight and have been out of work for a while (which makes it even harder to get a job since many employers feel that those who are unemployed for some time are washed up and deserve it. I have been told this to my face by some employers when discussing employment with them - they stated they would not hire the unemployed because only the losers were out of work. I was shocked to say the least).

So, if this is truly your case it's dire and I would suggest you no longer pay the cards and you file for bankruptcy immediately. IF you had any hope of getting a job where you made enough to dig out from that mountain of debt, I would not say this, but given what you've said, I just don't see a choice. If you don't get a job you will have FAR worse things than credit cards to worry about like keeping a roof over your head and food on the table.

Please do not interpret this as me saying it's ok to ditch your credits, I do not mean to imply this I'm only looking at the reality of your situation and it sounds grim and scary to me. You have to worry first and foremost about getting a job and making a living. Ideally you would be able to pay them back. But it doesn't sound like this is in the cards, so cut your losses as soon as possible and keep alive for as long as possible. As long as you are afloat there is hope. Don't give up hang in there. You never know when an opportunity may come along.

I hope this helps and I"m sorry about your situation.

sad trombones
 
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Location: Wisconsin

Postby sad trombones » Tue Jun 12, 2012 6:49 pm

Thank you for the quick response, I really appreciate it. I do realize that bankruptcy is a likely scenario, but id like to explore all my options at this point. Id like to gather some more info. Im wondering what happens to any $ I have left in savings if i file. Im also trying to find out what happens if i just continue not to pay and they get charged off, without filing right away. I dont want to ditch my responsibilities, but thats where im at right now. Is this the proper forum to be asking these questions. If not, please let me know as I want to follow the rules here.

Thank you again for your thoughtful response.

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Postby sfoboy85 » Tue Jun 12, 2012 6:55 pm

MemberSince99 wrote:Given that you are unemployed and have no light at the end of the tunnel, I mean if you REALLY don't see any work coming, the credit cards are truly the least of your concerns. Do NOT make further payments on them and I would say file for bankruptcy. The ONLY way that is valid is again if you do not have any hope of a job in sight and have been out of work for a while (which makes it even harder to get a job since many employers feel that those who are unemployed for some time are washed up and deserve it. I have been told this to my face by some employers when discussing employment with them - they stated they would not hire the unemployed because only the losers were out of work. I was shocked to say the least).

So, if this is truly your case it's dire and I would suggest you no longer pay the cards and you file for bankruptcy immediately. IF you had any hope of getting a job where you made enough to dig out from that mountain of debt, I would not say this, but given what you've said, I just don't see a choice. If you don't get a job you will have FAR worse things than credit cards to worry about like keeping a roof over your head and food on the table.

Please do not interpret this as me saying it's ok to ditch your credits, I do not mean to imply this I'm only looking at the reality of your situation and it sounds grim and scary to me. You have to worry first and foremost about getting a job and making a living. Ideally you would be able to pay them back. But it doesn't sound like this is in the cards, so cut your losses as soon as possible and keep alive for as long as possible. As long as you are afloat there is hope. Don't give up hang in there. You never know when an opportunity may come along.

I hope this helps and I"m sorry about your situation.


That is exactly what I thought after reading it all... Declare bankruptcy... there is absolutely no point of making any further payments on your cards... Best of luck in life!
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FastSRT8
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Postby FastSRT8 » Tue Jun 12, 2012 7:50 pm

OK.... although bankrupcy is the 'easy' out, it is not always the best way to deal with this problem.

What you need to do first is to speak with someone who specializes in debt management. Maybe you can look at debt consolidation as an option to get you thru this.

Although you do not have a steady job, I'm sure you have skills which you can rely on to get some side work to keep you afloat. Go to a manpower agency or something similar to get casual employment.

You need to keep pushing and trying to do odd ends while you look for your next gig.

Good luck


sad trombones wrote:Hello I'm new here. I do not know if I am at the proper forum, or website for that matter to seek help with my situation. I am unemployed (seeking work, but no leads). I've made some big mistakes I'm not proud of with money. I have multiple cards from multiple issuers equaling about $56,000. I've stopped paying on the cards on a regular basis starting in December '11 but I've made 1 or 2 payments on each trying to push the charge-offs further down the road. I have about 12k in savings equivalent I'm living off. No income otherwise.

I'm trying to wrap my head around all this and I'm not sure where to go from here. Please point me to the proper forum if one exists so I can ask specifics about charge-offs, bankruptcy(?), the general process that I can expect the creditors to pursue, all that fun stuff. I've always payed my bills on time up until all this.

Thank you for any replies.
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bmw1990Z
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Postby bmw1990Z » Tue Jun 12, 2012 8:21 pm

yes, not to be judgemental but you should be contacting a debt management service..or a lawyer...not posting about this in on some website.
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Postby MemberSince99 » Wed Jun 13, 2012 5:54 am

The thing is guys, yeah bankruptcy is not always the answer, but even if he gets a job, he's gotta earn enough to not only cover the interest and if his APR is say 20%, quite generous for someone who hasn't paid much lately and it's likely higher, he's going to have to be able to pay over 10k a year just to keep up in interest without making a dent in the amount owed. To actually slowly make a dent in this he'd have to be able to pay at least 20k a year on it without adding to the debt and even then he's going to pay for years to whittle it down.

If there is no prospect of being able to do that, then bankruptcy is the only solution.

It's a bad situation, but it's more important he worry about survival now than about credit cards. Would it be better never to get into this situation? Yep sure would. But that's water over the dam. What he's facing is a lot worse than just credit card issues here. Debt consolidation only works if you can work.

He does need legal advice but based on what he's said I don't see another way out of this. He'd have to have a job.

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Postby Snowman » Wed Jun 13, 2012 12:16 pm

Bro, like many have said above, unless you win the lotto or one of the scratchers or invent something that will make you really wealthy, I think you need to file bankruptcy or as another poster said to consolidate your debt...and most importantly TRY to find a job...
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