If you owe credit cards, hospitals,banks,and dept. store do you have to pay them back ? what can I do?

Answer 1

I had this dilemma about 15 years ago and had a $300 more in bills than income. By using this system, I was able to get out of debt (on everything but my housepayment) in about 2 years.

Here's how to get those paid off.

First of all, cut up the credit cards. If you keep charging you will NEVER get the bills paid off.

Then, call the companies and see if you can work out a repayment plan (and yes you do have to pay them off), because the new laws now do not allow you to file bankruptcy on medical expenses. And see how much you must pay on each bill.

Then look at your total income per month and how much you owe on the bills. Let's say your income and bills are as follows:
Fixed expenses
$300 rent
$300 groceries
$100 car
$100 utilities
$100 gasoline and misc. expenses

But you have $1500 income per month, which means after expenses you now have 700 left for your other bills.]

And let's imagine these are your expenses
$1200 owed on dept store credit card A (minimum payment 85 per month)
$2750 owed on hospital bill (minimum payment $200 per month)
$1600 owed on credit card B (minimum payment $50 per month)
$2700 owed on student loans. (mininum payment $200 per month)

I think that comes to 535 per month minimum payments but you have 165 additional. Here's how to go into attack mode on these bills.

Pay minimum payments on ALL bills, except one bill. I usually pick the lowest balance bill, which is the $1200 dept store credit card. I would pay the $85 minimum payment PLUS the $165 additional on that bill. That comes to 250 per month to pay on that bill. Within about 5 months that bill should be paid off.

Now when you get that bill paid off, you are at $250 extra for attack mode. Roll that $250 onto the next lowest balance bill. Which is the $1600 credit card. You roll the $250 and the $50 per month payment onto that one. That means you are now paying $300 per month on that bill instead of the $50 per month. When you get that paid off, roll the additional onto the next bill until you pay off every bill, and eventually you are debt free.

Good luck to you!

Answer 2

Yes, of course you have to pay them back. That's obvious. What you can do is pay them back. Pay minimum balances on everything, except the balance which has the highest interest rate. Pay much more than the minimum balance on that one until your balance is down to 0, and repeat the process on each account until they are all at 0. Cut up all of your credit cards except one. Hide that card somewhere, so you won't be tempted to use it for unnecessary purchases. Call the credit card and other companies and explain your situation and maybe you can work something out with them.

Answer 3

I think you know, of course, you have to pay them back. You can go to a financial institute or loan company who will sit down with you, show you ways to cut corners, and ultimately consolidate your debts with, hopefully, a decent interest rate. Then, they'll pay off all the debts any will have to pay one payment to them. That works for some. If you do that, then don't go out and open more credit accounts or obtain credit cards and start it all over again or you really will be in a bind.

Answer 4

Yes, you are obligated to pay your debts. You do have the option of sending a small amount. Most creditors want to see that you are trying. The important thing is not to run away because this will effect your credit rating at a later date. There is no free lunch

Answer 5

pay off $750 of you debt. this might very much shrink your activity and supply go away you a sprint $250 cushion on your checking account. Then, each month pay greater suitable than the minimum...pay $50 if your minimum is $25. this ought to allow you to pay off the the remainder of your credit card debt interior 6 months in case you so no longer fee the rest! stable luck.

Answer 6

You know DAM well you got to pay them back. If YOUR CREDIT dont mean anything to you then dont pay **** but you better beleive you wont get nothing else on credit until you get your **** back in order.

Answer 7

File bankruptcy

Answer 8

Consolidate, or file for bankruptcy. And in most cases, all your stuff won't be repossessed. Unless it's really new, or on loan.
Good luck, it certainly isn't easy...

Answer 9

woah woah you just wrote "If I owe....... do I have to pay back?" You answered your own question. You OWE someone, therefore you MUST pay them back.

Answer 10

don't pay you just won't be able to get credit later