Consumer Credit

Question: To a consumer credit counselor, or person experienced in credit card debt due to unemployment.?

(Posted by: WE on 2009-09-14 18:16:39)

I lost my job 8/ 15/ 2008 due to reduction in force. I was there for 10 years, made a good salary, but never saved. I had very little credit card debt, but had about 20 credit cards with zero balances. For the last year, I have spent 14- 16 hours a day on the phone, going to job fairs, networking, calling people with no luck. I applied for over 1, 200 jobs. Last week, I finally found a job making 80% less than my last job. I lived off of all of those credit cards for the last year, and used one to make the payments on another. Now, all 20 cards are maxed out. I am caught up on 15 of the accounts, but the other 5 are calling me every 30 minutes to 1 hour with an automated dialer. I did this to myself by not saving, and have learned a difficult lesson. The 5 banks will not accept anything less than the exact amount which is late, $2, 500.00, $3, 500.00, $1, 000.00, $1, 800.00, and $1, 200.00, and there is no way that I can make those kind of payments. I explained the situation to them and they did not understand and keep calling me. Five of the banks offered me a payment which allows me to make really small payments for the next 2 months until I am caught up. I am grateful to them for that. What can I do about the other 5 banks? Before I lost my job I had superior credit, now I am thinking about bankruptcy to get the 5 banks off of my back. Is there any other way? Thank you for your help from someone who has never had credit problems.

Posted by: bdancer222 on 2009-09-14, 19:24:29

Check with a NFCC credit counseling service: nfcc.org/ . These are legit, non-profits companies that will review your finances and advise you how to proceed. They offer debt management programs for a nominal fee. They don 't settle your debt. They negotiate lower interest and payments so you can pay back your debts. While in the program, it is noted on your credit report. However, upon completion of the program,that notation is removed and you will have decent credit.

Posted by: Sgt Big Red on 2009-09-14, 18:41:38

Your best bet is to find a legitimate credit counseling service to help you. You of course will loose those 5 accounts who are not willing to work out something with you, but you may be able to salvage your credit. This would also prevent any legal action against you and be far better then filing for bankruptcy as that is complicated, costly and you would have to meet the means test for your state. Hope this helps answer your question and good luck in your endeavors to successfully meet your obligations.

Posted by: john on 2009-09-14, 19:02:42

Not meaning to steal Big Red 's thunder and who,of sound intelligence would dare say anything to one of the Semper Fi group who will be guarding the gates of heaven? I would suggest Consumer Credit Counseling Service.This is a non profit organization supported by The United Way.I will warn you,there is a long wait due to the economy. Best of luck to you.

Posted by: MiltonT on 2009-09-14, 19:44:03

If they refuse to deal you could try one of the agencies but they may or may not be able to help. If you decide a BK is right for you then look into Chap 13 where the trustee forces everyone to take a payment plan. A Chap 7 is when you don 't pay off any of the 20 CC, not just the 5. The disadvantage is you have to wait 8 years to do it again which means you have to carefully protect assets in case you are sued for something.

Posted by: Jeffrey on 2009-09-14, 21:38:39

YES WE! THE ANSWERS YOU HAVE ARE GREAT BIG RED BEING #1 THE QUESTION IS AND WAS FOR ME WHEN I HAD A JOB INJURY MANY YEARS AGO AND WHICH STILL HAVE NOT GOTTEN RID OFF TODAY. IS CAN YOU AFFORD THE PAYMENT CREDIT COUSELING OFFERS YOU! I COULD NOT AT THE TIME I HAD NO CHANCE BUT I WILL TELL YOU ITS BEEN A NIGHTMARE. I FEEL FOR YOU AND EVERY ONE ELSE IN OUR SHOES. TALK TO A CREDIT COUNSELING COMPANY FIRST. THEN A LAWYER IF YOU GET NO WHERE I SAW MY BILLS SKYROCKET AND THE PROBLEMS IT CAUSED. GOOD LUCK AND BEST OF HOPE.