Question:
and have been turned in i am to far in debt to recover is it best to let them go to collections and sit there for 7 years or file bankruptcy. I am amost $30,000 in debt. Have thought about consolidating but a person form the bank said I should file. I would not have a life for many years and ahve to work two jobs to pay them and i also have a full time job of taking care of my parents. Need advice?
Answers:
Ok...first off...STOP USING THE CARDS!
Second...know you are not the first, nor will you be the last person to get yourself in this situation.
Third...Are you already delinquent on the cards? If you are still in good standing then you need to get the interest rates lowered.
Filing Bankruptcy is a pretty extreme decision, one that you need to really think about.
The question here is whether or not you have enough extra income to make a dent in the debt? Can you cut corners or get a second job to chip away at the principle? I am not "pro-bankruptcy" BUT you need to understand paying only slightly more then your required payment isn't going to help you.
Filing Bankruptcy now---will still be a pain in the a** for years to come.
You need to decide either to do the Bankruptcy or you need to come up with a repayment plan for the debt.
Not a "Oh, I'll pay an extra $100 a month, if I can" plan...BUT a serious long-term plan to pay off the debt. It takes a lot of discipline, and it will probably take 2-3 yrs to pay off...but it can be done.
You can find a lot of debt support websites to help you through this on "Yahoo groups" or "Ivillage"
Call all of them and work out a payment plan and try to get your interest lowered or stopped.
Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.
You proabbly need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control.
Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.
Go to the library and get "The Total Money Makeover". Read it and follwo it carefully.
Go check out Dave's website as well.
www.daveramsey.com
try fastfreecash.blogspot.com you can earn great cash online fast free so easy i earn $200-$500 a month easy!
if they go to collections ... it will be a lot longer than 7 years. especially if they take you to court and get a judgment against you. then they can put a lein on you. can garnish your bank and wages... (thats all depending on what state you live in) .. once they get a judgment... it doesnt go away.
NOT TO SCARE YOU... but it could happen.
If you own your home DO NOT take out a mortgage on it to pay the credit cards ...
You are the only one who knows all the circumstances and your whole situation... You do have options, but only you can decide.
can not give you much advice when i don't know the whole situation.
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