6 job losses, $65K in cc debt

iVillage Member
Registered: 08-29-2008
6 job losses, $65K in cc debt
15
Fri, 08-29-2008 - 10:45pm

The situation: In the last 3 years, my husband and I have had a combined 6 job losses (layoffs

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iVillage Member
Registered: 08-27-2008
Sun, 08-31-2008 - 4:39pm

Thanks for the info. I think I had thought that *everything* had to go through, and then be closed down.

Unfortunately we kind of screwed up, in that we have two credit cards, Bank of America, and AAA's. What we hadn't known, when we signed up with the AAA one is, that it is handled by Bank of America, and therefore is considered as with the same company.
So, I am kind of uneasy that they still might shut both down, if they got the "red flag" that we, "were having financial problems".

Unfortunately that is becoming more common now, for the various cards to be handled by the same company so that customers then cannot do "balance transfers" between them.

Example would be, that the Bank of America card offered 3.99% for the life of the loan on balance transfers, but they refused to do one from the AAA Card to the Bank of America card, as they said, it was "Same Company".

We do have one other card, that I had forgotten about, an American Express Blue card, that we got about a year ago, to try to do balance transfers to, that we have never used since we found out, that, "Due to us being overextended, instead of getting the advertised rate, of about 5.99%, we got 17.99% interest, which was *more* than we were already paying, on the other cards.

It is frustrating when you keep trying to find solutions to help yourself to pay the cards off, and no matter what you do, it seems you just can't.

But, what I do know that I can do, is to make a lot more effort to get the "frittering" under control, and earn more, so that we can "make ends meet", and "stop the bleeding", or "digging the hole deeper".

I did find out that last month, when I managed to make it through without borrowing anything, the minimum payment, on the one card went down by $10 a month. If I could stay "solvent" for ten months, then, that would be a $100 a month reduction.

My plan, had been to try hard to help my husband and I to relocate to a lower cost of living area of the country, and then, once we were moved, then, make the calls and it wouldn't matter then, if the cards got closed down. but, I think both of the cards would get closed down.

There would be the American Express Blue left. But, at about 18%, we wouldn't want to use it.

I think that I tend to do nothing, because I am so afraid, that if I do something, it will just make things worse instead of better.

Fear of the "unknown", is one of my things I am really neurotic about.

Sincerely, Linda

iVillage Member
Registered: 03-17-2003
Sun, 08-31-2008 - 6:09pm
A point of clarification about "...bankruptcy you are not ".

iVillage Member
Registered: 08-27-2008
Sun, 08-31-2008 - 8:05pm

Actually I am clear, on that filing for bankruptcy means that you are asking your creditors to agree to "settle" for only a part of what you owe, whereas, the CCC companies work out a payment plan with the places that you owe, often with dropped interest rates, and lower payments, so you can manage the payments, to pay off your debts in full. But your lines of credit will be canceled, so that you cannot borrow any more on those cards.

I think, that, that, is why some debt management books have suggested, the bankruptcy as, what they felt was the "better fix" in that it "supposedly gets you out of debt more quickly". And as some of those books apparently viewed it, as, that no matter which way you went, they felt that your credit would be harmed, they felt that it was better to go with the way that would get you out of debt more quickly.

I would tend to agree, that there are many differing opinions on which is the better way to go, and I, myself, intend to try hard to repay whatever debts I owe. I actually do not have any opinion myself on which is better, as I have not done either yet, and therefore have no personal experience, or opinion on what would be best for anyone else to do.

I know that two family members went the bankruptcy route, and years later have good credit. I would probably call the creditors myself and see what could be worked out.
But, I don't feel able to do any of it right now, when we may need to use the cards to pay for a relocation to a lower cost of living area.

The suggestions someone had for us on simply dumping a lot of our stuff and then mailing boxes of things, if we do a move, is a good one.

I had actually read a book on cross country moves, in which the woman who wrote it, said, that unless your stuff was really valuable, or irreplaceable, then, it would be less expensive to just sell it all and replace, then to have it moved cross country.
And, my brother had said that he had mailed some really big boxes of stuff for surprisingly little.

If we do a move, we will be trying to be as furgal as possible. But our cars, we feel do need to be shipped at about $1,000 each to do that. They are old, but paid for, and they run. We figure if the shipping costs, are less than it would cost to buy replacement cars, then, we might as well ship them.

So, for now, we will just keep on job hunting and trying to not borrow to make it through each month, so we can be in the best financial position we can, if and when a move needs to happen.

But, I am clear on that bankruptcy is not repaying what you owe. Which is why, it is more than likely not, the direction we will plan to go, when we do try to figure out what to do. Just passing on what I had read.

Sincerely, Linda

iVillage Member
Registered: 05-09-2005
Mon, 09-01-2008 - 12:51pm
Hi,
I'm hoping you can clarify a few things:
1) What is your student loan payment?
(It sounds like both of you have 4 year college degrees -- is that correct?
And, together, you owe $75,000.00 in student loan debt.
Are they in deferment? Deferment isn't great because the interest continues to accrue,
BUT if you are unemployed, deferment may help to give you some breathing space. So, if one of you is unemployed, at least that person should probably apply for deferment.)


2) What is your current monthly income from whoever is working and/or unemployment?
(There must be SOME income, or you couldn't be paying "$1,800.00 per month for minimums"
What are you including in minimums? utilities, mortgage, student loans, credit cards ????


3) What is your mortgage payment?



Lay it all out.
Then, pretend YOU are the person giving the advice.
It sounds like you are willing to leave your current area for a job (?).
My personal advice would be to sell your house before you lose it. Use that money to clear up debts, or at the very least to get rid of the mortgage payment.


Then, start over. Take any job you can get until you get a handle on things. That includes minimum wage jobs, UPS, all that stuff.


Please post your actual income and actual expenses.
We really don't have any real facts to work from to give you advice.
We might be able to help.
Megan
iVillage Member
Registered: 11-02-2006
Thu, 09-11-2008 - 5:32pm

Hi,


I know this post is a cpl wks old - but thought I would weigh in anyway. Now I must admit that I am filing ch 7 in about 2 wks. Hardest decision in my life. HARDEST. Like you, our credit score was great.(but what does that matter when we cannot even consider taking a loan

Stacy

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