credit card debt question

iVillage Member
Registered: 05-15-2006
credit card debt question
2
Mon, 05-15-2006 - 11:13pm

I'm at the point where I can no longer pay my credit cards in order to stay current on mortgage, utilities, food, daycare, etc. I'm already working full-time during the day part-time from home yet it's not enough. Daycare is killing us but I don't have any other options and can't afford to stay home.

Does anyone know what happens when you start defaulting on credit card payments? I know it hurts your credit but what will eventually happen if you can't pay them?

iVillage Member
Registered: 05-09-2005
Mon, 05-15-2006 - 11:29pm
I think they can eventually get a judgement against you and then they can get an order to take $$ from your paycheck each month. Not a good idea. Let's think of something else.
Is it the daycare that is really causing the problem since it is so expensive? It is always expensive I know. Can you post your budget? Maybe we can help figure something out.
Is it the interest rate on the credit card that is too much? -- it might be worth calling them to see if they would lower it, or lower your payments for 6 months or so.
Or maybe you could transfer the balances to a 0 interest rate card for a while. I've noticed the 0 interest rate cards usually don't ask for a very high payment monthly. (I think they are hoping you can't pay it off, and they will still have you when the 0 interest rate goes away.
What would happen if you didn't work at all? I know that sounds dumb, but -- no daycare, and maybe ways to reduce the household expenses.
Post your budget maybe and let us see what we can figure out. For sure, you don't want to roll this debt into your mortgage (if you have one) -- then it would be secured debt, and your house would be in jeopardy if you couldn't pay.
Megan
iVillage Member
Registered: 03-27-2003
Tue, 05-16-2006 - 10:16am

I agree with Megan, you don't want to start getting behind if there is any way to avoid it. Give us some more information so that we can help you figure out what that is.

What kind of work are you doing part time from home? Is it something that you could turn into a full time job if you had to? Can DH get a part time job for a while? Have you checked in your area into someone who does daycare in their home? Often this is less expensive than a daycare facility, especially if you have more than one child. What is the situation with your mortgage, credit cards, and car loan situation?

You are correct in paying mortgage, utilities, and essentials prior to paying the credit cards, but if there is a way to get through this without messing up your credit, lets try to find that way.

Heather