Help! No money, no job, credit card company keeps calling and sending letters about collection.?

Question

I've been unemployed for a little over a year. Unable to find a job, think my previous employer (state of Illinois) might be black-balling me. (Anyone know how to find that out for sure?....and what to do about it?)..Any way, I'm over $13,000 in debt to a major credit card company.....also owe aprox $5500 on a personal loan through a financial institution. The credit card company calls just about every day. I explained my situation to them from the beginning, but it didn't do any good. Now I just don't answer the phone. They've sent three letters saying they will turn me over to their attorneys, or place my account with a third party for collection. I have no money whatsoever or I'd file bankrupcy. Had great credit up until I lost my job. Is there any way out of this mess? I also have insulin dependent diabetes (for the last 20 years) and depression and can't get on any government assistance except foodstamps if that factors into anything. Thanks for all serious answers.

Answer 1

for your credit problems go to your local credit counseling service, most states have gov't programs to help folks in your situation. there's not much you can do right now about the credit card company calling you every day, it's within their rights to call you to collect money you owe them. the credit counseling service may offer some suggestions for you to help deal with them though.

as far as affording your perscriptions try going to www.pparx.org... they can help you find assistance for your medications.

now for your previous employer situation, contact the bureau of labor and industries for your state and talk to them about it. if your employer is in fact black balling you, this is discrimination, it would be very hard to prove but if BOLI contacts your previous employer with these suspicions then they may stop so they don't get in trouble.

good luck.

Answer 2

First call them up again and explain your situation and they might offer you some alternatives like erasing your interest charges and giving you small payments that you might be able to make - like $20 a month.

If that doesn't work, see if you can find a legal aid organization in your area. There are "financial counselor" organizations, but many of them are corrupt, so that might not be a great idea. Try to file bankruptcy.

Look at applying for more jobs. Unlikely that a State Employer would be able to blackball you from all jobs in the State. Check the want ads every week and send out 3 or 4 applications every week. In the mean time, volunteer at a local organization to keep busy and make contacts, or take a lower skilled job such as receptionist, janitor, or wharehouse worker.

Answer 3

Credit cards are unsecured which means you owe them the money, no they cannot take your things, no they cannot have you arrested. What they can do is call you, constantly asking for payment. They can go to court and get a judgment on you but unless you are talking about thousands most likely that will not happen. No they cannot garnish you wages except in extreme cases. Most statute of limitations are 4-6 years (check your state) after that if they file for a judgment all you have to do is show up and show the SOL has expired, and you will win the judgment . The collection agency's can still bother you but all you have to say is the SOL has expired. NO they cannot then re report it on your credit score, unless you make a payment, then the 7 years start again. Best is if the SOL is past, dispute the debt, then they will have to prove that it is indeed correct, most will not since it cost them money that they cannot legally collect.

Answer 4

What efforts have you made to get a new job? I highly doubt your old employer is blackballing you....unless they have somehow called every firm in every industry.

Where have you looked? Have you prepared a resume? Are you using the internet to find job listings? Are you looking into other careers? Have you contacted any temp agencies? Looked into substitute teaching?

Are you looking for a permanent job or ANYTHING that can make ends meet? Remember, where there is a McDonald's, there is a job opportunity (granted, its not the best opportunity....but income is better than no income)

Getting a job is priority number 1. Once you get a job, you can consolidate your debt.

However, there are also companies that specialize in negotiating debt with credit card companies and they usually offer free consultations. (Legality varies by state)

Answer 5

well first off if you're over 5,000 dollars in debt, they will take you to court, that's the magic number. But if it's still at the credit card company you're in good shape, it's not at a collection agency yet. I highly suggest you call a debt consolidation company, like debtserve to consolidate all of your payments into one, htey can stop hte harrasing phone calls and usually eliminate any interest.
What I wonder is how can you have been unemployed for a year? Sounds like you need to lower your standards and take something, if you hvae govt work experience you should be able to find something.... good luck

Answer 6

File For Bankruptcy

Answer 7

Foodstamps is better than nothing... as for your previous employer... get a phone with a recorder (like an answering machine or something), call them and pretend to be an employer checking references and ask some questions. If they are saying anything illegal, you'll have it on tape. Then you can sue them. Then you'll have money.

Answer 8

Can you take out a consolidation loan from your bank and start paying a low monthly rate until you get back on your feet? Don't go through one of those companies to consolidate debt they will rip you off.

Or, you could claim bankruptcy.

I am not sure why you have been out of work for so long but you could take something below your skill level and get some income coming in. I hope you don't have children.

Answer 9

Well, maybe, if you cannot find work in your chosen profession, and you are this desperate, it is time to look outside your profession, at this point, ANY JOB is a good job. Another solution may be to look outside your state, or area. I doubt that your former employer is that interested in you to contact out of state offices.

Answer 10

Get a job and get back on your feet. Worry about the other bills after you are situated, remember its never too late.