Im a single mom drowning in credit card debt. please, I need advice!?

Question

Im in about 18,000 dollars in debt, my payments are about 450 a month in minimum payments. I make 8 dollars and hour raising a 15 yr old daughter. I no longer purchase anything on the cards, I just want to pay it off. i am despartley afriad of my credit being ruined because I dont have any social security or any income for when Im older, and all Ill have is my credit. Ive never been late on paying, but my card payments have come first before gas money and food. Im so scared and drained. Should I just consolidate and pay whatever I can...or should I keep struggling and paying them first and pray I make it till they are paid off? Right now my income is less than my bills and im just drowning more and more. Ive always been proud of paying my cards on time and in full...but in the long run its effecting my rent, food, bills....The reason the amount got so high was that I was out of work and it was put the rent on the cards or become homeless. What can I do?

Answer 1

Don't panic. You need to deal with this problem like all problems in life with calm and confidence.

If your income is less than your expenses there is no way you can get out of debt. So, first step. Is it possible to cut down your expenses? Evaluate the following home rent, expenses for cable tv, internet connection, mobile phone, long distance telephone provider and other utilities- do they all cost the lowest rate possible.

If not shop around and get the best deals. If you call only one or two people frequently then switch to some connections like friends and family which give you the lowest rates for 2-3 phone numbers you choose. Cut down on things you never use or which can be postponed. If you don't use your internet connection - get it disconnected. You don't need the cable connection - get it cut too. Till you are firmly back on your feet you may have cut out some luxuries.

Call up your credit card company and ask them if they will lower your credit card interest rate. As you have good record of paying on time they will surely consider your request. A lower interest rate is like getting a cash back. For example on your debt of 18,000 dollars at 20 percent interest you will be paying 3600 dollars per annum in interest alone. Cutting down the interest rate to 10 percent can bring down your interest to 1800 dollars. That means you save 1800 dollars in interest which you can use to pay your principal. If you promise to pay on time they may even waive your late fees. So, make that call to your credit card company. If you have more than one card then transfer your debt to the lowest interest card, that should also save lot of cash.

Can you get another job? That should help you go a long way in cutting down your debt. If you daughter can pitch in by earning a few extra dollars through some baby sitting or cleaning neighbors yards that should help too. Many such jobs will be posted at the local supermarket.

Is it possible to get a raise at your current job? If not try to find a job that will pay you more. Most important don't lose your confidence. You have done a fine job till now with a little help you would definetly do better.

You should also go to debt counselors who will give you more advice on how to tackle your debt with the income you have.

Best of luck.

Answer 2

First, cut up those cards. Second, Get another part time job. Third, put the daughter to work. Can you rent out a room in your house? Maybe make crafts and sell them at the swap meet/flea market? Move into a smaller less expensive place? As a LAST resort, contact a Consumer Counseling Agency to consolidate your bills into one lower monthly payment.

Answer 3

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Answer 4

You have got to get back on track, things have already spun out of control. Credit counseling and get things so you won't be so stressed out. You can't be a good role model for you kid with things like this.

Answer 5

credit counseling do it as soon as you read this.

Answer 6

Are you good looking?