I am incurred debt on my credit cards of 20k+ and can't afford to pay them.  My finances have changed and I really can't afford anything beyond rent, and necessities.  I don't own a home or a car and have a child to provide for too. There is no money left to pay them even if I budget as I have no where to cut.  I lost a job and got a new one that pays half the hourly I get elsewhere (I work many years at the other job but they company closed).  My good references and experience didn't help me get better wages.  I have never been late on my cards in the 15 years that I have had them.  I have used them to buy clothing (lots of clothes) and for dental bills and day to day necessities (groceries, health items, etc).   If i cannot pay these cards can they seize my used clothing and lingerie?  I have very little valuables (no big tvs or anything) just clothes.  Is there any way to solve this?
200364
Did the Earth just shake?  Something awful happened, cause we finally got a wise answer from icsowesmemoney!\n\nFact.  You owe $20,000.  \nFact.  You make $800/month\nFact.  If you were somehow able to find $200 in that tight budget, and factoring in interest payments, it's going to take over 10 years to pay this debt!\n\nThe other responders completely ignore your comments on the difficulty in finding a better paying job.  Some day, they will lose their jobs or get laid off, and will discover this fact for themselves.\n\nYou are a prime candidate for filing chapter 7.  You will not meet the "means test" because you don't make enough money to be forced into a Chapter 13 "wage earners" plan.  With no home or car, you have nothing.  \n\nCheck with the local bankruptcy attorneys, and you may even find a program for low income people and get a very low legal cost.\n\nGood luck.  You are in very good company.  Many thousands of other people filed for bankruptcy last year for this very reason.
513606
The first step is to stop using the cards!  I keep my credit cards at home in a safe place so that I do not get tempted to use them while I am out and about.  Once you have done that, the next step it to look at your budget.  You can easliy make a spreedsheet  in excel to keep track of what you pay each month.  When you know how much you HAVE to spend (like rent, food, gas, etc) then the money left over goes to things such as credit card bills and extra spending money.  What works for me is to start paying off the smaller bill first...I like to see that I have completed something.  That way, you also have more money to pay on the larger bills.  Only in extreme cases: try to tranfer the larger balances to another card that has a smaller interest rate.  If you do that, CANCEL the cards that you just zeroed out.  That way, you will be paying less....but you should CANCEL the zero balance card.  It would be good to just have one credit card for emergencies.
275741
I, too am in a similar situation, except I'm in more debt and little older. Instead of bankruptcy, I consolidated my school loans and also applied for financial hardship or income sensitive...whichever one is used for those not making much $$ and i contacted a credit consolidation company. The consolidation company will take over all of your outstanding bills and those in collection aside from things like car and house and school loand payments.\n\nMy hospital, credit, and other similar bills are lumped into a once a month payment under $500 and will pay everything off in 4 or less years...no penalties for paying off sooner.\n\nI think going this route will show that you are taking responsibilty for whatever fianancial problems you may have and should hopefully get back to having good credit. Also, for my credit card, the consolidation company is communicating with the companies for me and will do what they can to have interest rates reduced as well as late payment fees and etc....\n\nfeel free to contact me in regards to all this if you like....
92601
Your best bet is probably to start with a secured line of credit.  These are credit cards, however you have to pay against the line of credit ahead of time.  This will allow the lender to give you a card to use and have the money available if you default.  Use the card wisely AND pay off your charges on time.  It'll go a long way to giving you a good credit history.\n\nAnother choice if you can't afford the upfront payment on the secured line of credit is to get a regular credit card and since you have no credit history be prepared to have an obscene interest rate.  Use that card wisely AND pay it off on time to prevent any interest charges.  After some time, you can apply for another card with a lower interest rate and chop up that higher card.  NOW THIS IS IMPORTANT...pay those cards off immediately.  Do not get trapped with revolving credit.\n\nYou can give yourself a decent credit rating in as little as a year or so as long as you always pay your debts on time.\n\nGood Luck
610789
You may not like my advice but as a former financial counselor I hate to see people get into worse situations. Right now a $5000 loan is not the solution to your situation. I can see from the low credit rating and late payments on credit cards, that having a $5000 loan may actually be a large temptation to spend it instead of using it to pay off your debts. The BEST thing may actually be to use a consolidation program. They basically contact your debtors to arrange an amicable payment schedule to satisfy the debts and all you have to do is make one monthly payment. There are plenty out there which are non-profit, and you can ask them to waive their voluntary donation fee so that it truly becomes a free service. The reason it is a good idea, is that by consolidating your debts, the creditors see it as an honest attempt to improve your financial health, and reduce interest rates accordingly. Not only that, but they close all your open accounts so that you are unable to make any new charges. This might be painful but its the best medicine for someone who is having financial trouble. Just make sure you are working with a company that is reputable and accredited.\nThis might not be want you wanted to hear, but credit repair takes time. It is not something a regular person can fix overnight. Just continue to make payments and slowly you will see an improvement on your score.
551266
First, don't spend what you don't have. What monthly expenses do you have? If you make $6/hour and work 20 hours a week, it will only take you 5 months to pay the $2000.\n\nIn the meantime, read (http://www.iwillteachyoutoberich.com). Credit consolidation isn't always a good thing. If you have well established credit (which it doesn't look like you do), you could get another credit card that has 0% APR on balance transfers (and hopefully a 0% fee on that transfer as well). Transfer the balance to the new card, pay it off within the 0% APR timeframe and problem solved.\n\nBut to me, it sounds like there might be another, deeper problem that needs to be worked on as well.
581475
Try the UNITED WAY debt consolidation I did and the calls stopped and I made one payment a month according to income level and there was no fee. You MUST call your credit card company's and tell them to STOP your cards immediately or it just keeps getting more and more (very very important) don't use them at all go all cash or don't spend. This is a free country thank God and we should not let the Government dictate anything. I hope this helps. Knowone made you go into debt so its you that has to figure a way out. A real challenge indeed, with out claiming bankruptcy (even if you claim Bankrutcy you still have to pay back at a lower rate depending on kind of Bankrutcy and judges decision) go to consumers Q&A on your computer and see what other people are doing and follow what is working for the MAJORITY. It might work for you as long as your debts arent too far out (Hundreds of thousands). It seems the older we get, the less they care about us, not much can be done about that unfortunately. when the goin gets tough, the tough get going .....good luck my friend.... your imagination is thier worst enemy...... Peace
15711
Stop using your credit cards.\n\n \n\n“People change their lives only when they say, ‘I’ve had it!’” – Les Brown\n\n \n\nThink you can’t exist in the 21st century without credit?  Do you have at least one credit card?  Did you sign up just for the bonus miles or cash back?  Sounds like it’s time for you to perform a plasectomy.  (That’s what Dave calls cutting up your credit card.)  You’ve heard all the lies, now here are a few facts about credit.\n\n \n\nMyth: No on can live without credit cards.\n\nFact: Actually, 24% of American households are getting by just fine without any type of credit according to a Federal Reserve survey of consumer finances.  Try using your debit card or cash instead.  If millions of Americans can live without credit, so can you!\n\n \n\nMyth: Credit cards help me get airline miles, cash back and other discounts.\n\nFact: Yeah, credit cards also help you get into debt.  Consumer Reports say that only 25% of airline miles are ever redeemed – and credit card companies know it.  Earning a few airline miles is not worth thousands of dollars in debt.  \n\n \n\nMyth: I can just pay off the balance at the end of every month.\n\nFact: You’ll be in the minority.  According to CardWeb.com, only 40% of credit card users pay off their balance when they receive the bill.  Plus, overspending is inevitable when you use a credit card.  It’s just easier to swipe a piece of plastic than it is to flash the cash.\n\n \n\nMyth: “Ninety days same as cash” is the smart way to buy.\n\nFact: “Ninety days same as cash” is a scam.  Retailers know that most consumers won’t pay their balance in 90 days, which means you get stuck with outrageous interest rates and back charges to boot.\n\n \n\nMyth: I’m required to have a credit card to buy a house.\n\nFact: Several quality mortgage companies provide underwriting which allows you to purchase a home without a credit card.  If your mortgage lender requires a credit card for your home loan, run – don’t walk – to a lender who will actually help you achieve freedom from credit.
207078
Yes I do. First thing is take your credit card and hide it somewhere that you would have to break something you like open in order to get access to it. For example, your makeup compact that costs a lot. Hide your credit card in there and make sure the only way you can get it is if you break your compact open. This way everytime you are tempted to spend, you wont want to because you wont want to break your compact. Also when food shopping get coupons and look for bigger packages with speacial deals. A few penny's here and there makes a huge difference. Lastly, every paycheck you get set aside $50, even when you owe bills. This will help you out in the long run and remember only get what you need because what you dont have you dont need at all.
268354
Extra points to you for thinking AHEAD.  Most people destroy their credit, then think about paying down the debt.\n\nIt would have helped greatly if you had been more detailed in describing your situation.\n\nFirst, can you make minimum payments to keep afloat?  18% isn't fun, but that avoids the credit catestrophy issues, at least.\n\nSecond, what do you have equity in?  A house?  A car?  Obviously a 401k.  Make a list of everything worth over $500.  Can you get a loan against one of these assets?  Consider approaching family and friends and ask them for a short-term (1-2 yrs) loan secured against something, preferably.  I've seen people get unsecured (small 1-3k) loans from family.  I've done a lot of these.  Write them up, be professional about protecting your family/friend who has probably not enthusiastically become an "investor."  Take care of them.  In the future, after you pay them off, they'll remember your integrity is solid.\n\nBottom line, you appear to have assets.  They appear to be illiquid.  Your mission, should you choose to accept, is to find a way to loan against one of those assets to create some cash.\n\nIn writing this answer, it's become clearer my reaction to your paying off your credit card debt.  BE VERY CAREFUL.  I've loaned a lot of money to people who get into have-assets-but-no-liquidity situations (except with much larger numbers).  Because if you get a loan, and spend all of your cash to payoff your credit cards, then you're almost back to the same situation again:  no cash.  This is an incredibly dangerous place to be since you can not make minimum payments on most bills - rent/mortgage, property taxes, car payments, electric bills, etc.  Being even a few days late could wack 120 points or more off your credit (I watched this happen 2 weeks ago).\n\nLet's assume you are getting unemployment that will cover basic living expenses, ie you have cash coming in from the gov't for at least awhile.  If then the only problem is that your credit card is at 18-24%, then yes, it probably makes some sense to borrow at 8-10% from family/friends and pay off most or all of the debt.\n\nAfter you borrow the money and get ready to spend it, Beware.  It is unlikely you will get too many chances to get this right.  Once it's spent, it's hard to get back.\n\nI would be VERY comfortable with my cash situation before paying off credit cards.\n\nAnother alternative is to get a credit card that will give you 0% APR for 6-12 months.  It'll ding your credit about 12-15 points, which shouldn't kill you, but more importantly, it'll save interest.  At this point, you then have another credit card, which if you're wise will simply be for emergencies.\n\nFeel free to email me with any questions,  Good luck,\n\nJared\n- - - ADDED AFTER I RECEIVED EMAIL WITH MORE INFOMATION - -\n\nI had another idea that might make more sense for you.\n\nInstead of pulling the money directly, which will incur something on the scale of 38%+ penalty (THAT's a wicked interest rate), you should see if you can borrow money from your 401k.  It's estimated 75-90% of 401k plans qualify for this "loan"-feature.\n\nBasically, you withdraw up to 50% (or 50k, whichever is lesser) of your 401k.  You may have to state that doing this helps prevent you from losing your home.  You then repay the loan/yourself over a 5 year period and you repay yourself with interest.\n\nAssuming that your employer's 401k allows for loans, this makes much more sense.\n\nYour current scenario:  38% penalty * 30k= 11.4k to the government, leaving you with only 18.6k.  Which means you have to withdraw much more to pay off the credit cards.  You have to withdraw $48,400 (less 38% penalty) to have 30k left for credit cards.  Too payoff your credit cards, you'll lose $18,400 in penalties/taxes.\n\nLoan scenario:\nIf you need 25k, take out 30k.  Charge yourself 8% interest.  Use the left ov
340219
considering you are not at home asking this question and at work...take this time to look for part time jobs in the evening.  If you are cleaning an apartment every few weeks, why not try to do your own little side gig and do more houses or apartments.  If you have family that is willing to help watch the children while you earn extra $$ that is your answer.  If you are unable to pay your bills off you can consider filing for bankruptcy - it screws your credit for 7 years, but if you're not getting anywhere on the bills, then it's an option.  My mom raised 3 children, went without eating and things for herself so that we could have clothes and such.  We shopped at good will and i didn't know any better, i thought it was the greatest thing goin.  As much hoopla as people put on presents, it's about being with your family and making the most of the time together.  I would consider asking family to help watch the kids while you work a second part time job to earn more money, when you work hard for your family and prove that, people are more willing to help out.  Good luck and god bless!
28868
Just paying a few dollers each month will put you in good standings credit wise. All you need to do is let them see you are making a little effort also if you need assistance you can go to your local human services and they could help you get some assistance. Good Luck cause I know how it feel I got overian cancer and had no insurance now I have thousands of dollers in bills. It seems like they never stop mailing you bills but like I said just show them a little effort.
622750
You have to cut out everything that is not essential to living. For a while you may not get to eat out at restaurants, rent videos instead of going out to movies, and eliminate all unnecessary spending.  If you have movie channels on your cable or satellite, go to basic only. For a while I could only pay for things that could be turned off or reposessed, and everyone else had to wait. They threatened me with reporting to credit bureaus, but if you already have a bk, so what? Cut up any credit cards you still might have and learn to live within your budget.
223001
I had to borrow money from my wife to buy her an engagement ring.  I cashed in my 401K to pay her back.  When we got married we had $27,000 in credit card debt.  She made us do a budget so we could see where our money went and prioritize our spending.  Eight years later, we own a house, a timeshare, have two children, and only $4,000 dollar in credit card debt.\n\nStep #1:  Make a budget listing all the spending you have now.  People generally hate the word budget because they think it is restricting their spending.  Instead, view it as prioritizing your spending.  The first things that you will spend on will be rent, food, car/gas, utilities, etc.  \n\nStep #2:  Look at all other spending.  Do you want to have HBO and premium cable, or can you just purchase basic cable and save an extra $6.99 each month?  Do you subscribe to a newspaper and only really read the Sunday paper?  There is another $3.00 per month.  Do you eat out to dinner (this includes pizza, fast food, take out, etc) three times each week?  How about only twice and there is another $20 each week or $80 each month. \n\nStep #3:  Start reading your credit card statements and stop making late payments. This was the biggest help to us.  Not only is that $29 that you could save instead of giving to a credit card company, but late payments make your credit score go down and then you only get credit cards with high interest rates.  Check all the interest rates of each credit card.  If you receive a credit card offer of a low interest rate, see if your credit card company will match it.  If not, transfer that balance right away.  We have found the credit card offers that work best to decrease you debt are those that have 4.99% for the life of the balance, instead of $0% until next August.  MOST IMPORTANT, once the balanaces have been transferred and you receive your new credit card, cut it up, throw it away, put it in the freezer in a ziploc bag, but do not use it.  ANy new purchases will be at a higher rate and will not decrease until the low interest balance is paid off completely.\n\nStep #4:  Save money for something small.  If you want a new sweater or an iPod or a weekend vacation, choose the goal and start puuting cash in an envelope.  This will start your savings habit and reward yourself at the same time.  As your cash envelope becomes more, then you can move it to a savings account.\n\nHope this helps.
205954
Credit cards are easy to get.  TOO easy if you ask me.  You can apply online, call the company, or apply through your bank.  BE CAREFUL though because they will give you a card and a maximum limit and it is so easy to just start spending.  I have a friend who racked up credit cards when she was 17 and 18 and she barely, barely paid them off (she is 27).  They are not your friends.  Make a habit of only spending what you make and having one to only use in emergencies like unexpected car repair.  Good luck and God bless.
464356
Have you checked out Oprah's "Debt Diet"?  I do not have the link off hand (sorry).\nI usually advise clients to do some or all of the following (depending on how far in debt they are):\n1) cut up all but 2 credit cards and use those only for emergancies (also call the companies and cancel the cut up cards)\n2) create a livible budget that you can adhere to\n3) chart all purchases/expenses and see where you can create "free" cash\n4) withdraw only a certain amount of money each week.  That is all the cash that you have for the week - keep in mind any activities that you have occuring said week and spend your cash appropriately.\n5) get a personal accountability partner - someone that you share your weekly spending with (like a list) and will give you additional encouragement/punishment (for lack of a better word) when needed\n6) create a savings account that is only for your "wants" - you can not overdraw a savings account and you can only use what is there.\n\nFor the clients that are seriously out of hand, I usually recommend that they make their account "2 singatures for withdrawal" - that way you are not able to withdraw funds without the second account holder present.\nI hope I was able to help!
326919
Your story breaks my heart, and the sad thing is, so many people across the country have a similar story. People today have not been properly taught to manage money. It's also pretty difficult since cost of living increases have risen exponentially and pay at most jobs has increased minimally if at all.\n\nCredit cards are a very dangerous thing. My best advice is to cut spending to a minimal. Cut out the things you don't need. Make out a monthly budget for you and your family and stick to it as best you can. Allow for emergency and a little for entertainment, but be careful about spending more than you need to.\n\nIt's OK to rely on family and friends for help. Ask people to babysit for you when you need them to. Have them help you look for a new, better job.\n\nIt's going to be an uphill battle, but you can do it. You have to for yourself and for your kids. Good luck. :-)