I can't pay some of my credit cards anymore starting next month, what can they do to me?

Question

I have depleted my savings that has supplimented my meager 600 a month take home pay. I have payed my cards for years with no problems but my life turned around completely a year ago and I have been going downhill since then. I can still pay a couple of my cards for a few months but I must save what little I have left in the bank to avoid homeless for aleast a few more months, then I don't know what is going to happen. I have nothing of value, no car, no fancy electronics (have a 50 dollar tv) and no property. I live in the cheapest place I can although it's dangerous. I walk to work and ride home with a coworker , which means I have to stay an extra hour off the clock till they get off work. I work retail and don't have a regular schedule but I do work every weekend and some evenings and most other jobs I've checked out won't even consider you if you won't work those hours but I already do that at my other job. What can they do to me and how long does it take to be over?

I don't have any friends and my family won't help me. Just about everything I purchased is gone as I was thrown out of my family home a year ago and they gave away all my stuff. I have to put my rent first before the credit cards so I can't pay my cards anymore.

Answer 1

First, I commend you for trying for so long.

I suggest you begin by writing to your creditors, stating that you are no longer able to make any payments. Explain that your salary is equal to your room and board, and you have no excess for debt repayment. You could also just ignore the bills for a while; either way, the accounts will soon be charged off and turned over to a collection agency.

When the collection agency contacts you, send the agency a letter asking them not to contact you (it's your right). When the accounts are sold to a new collection agency, send them the same letter. You have enough problems without having to deal with a collection agency.

You already know your credit will be shot to heck for the next 7 years, but at your current income level getting credit is the least of your worries.

The only really bad thing that could happen: A creditor may take you to court to collect a judgement against you, although without any assets that's pretty much a waste of time on their part.

Each state has its own statute of limitations concerning debts, and after a certain amount of time (3-6 years) the debt is no longer legally enforceable.

Whatever you do, don't even think about bankruptcy, unless the creditors are actually taking you into court (and not just threatening to).

Answer 2

Honestly, simply cal the cards RIGHT NOW and negotiate a lower interst rate or lower monthly payment, and explain the situation. They might be wiling to suspend payments or lower your minimum, or something similar.

Other than that, if you KNOW you are going to start missing payments like crazy, choose a couple of them to stick with and let the others go. Each card will charge you around $35 for missing a payment and $35 if you go over limit (and if you go overlimit becuase they charged you a fee- they still charge you the OL fee...ugh.) So if you can avoid the fees consistnatly on a card or two, you're better off then just paying this one and then tha tone and then this one.

Also, eventually a card gives up and charges off the amount, effectively ending the cycle. Later on you'l have to go back and pay quit a bit more than you originaly charged on the card, and the charge off will hurt your credit, but honestly if its between that and being homeless-- well obviously you made the right choice.

So basically, if you had say 4 cards and only $50 for payments, and there were two cards with $25 payments and two cards with $50 paymetns, you'd be better off staying current on two accounts and letting the others do whatever they are going to do.

Answer 3

If you stop paying, the cards will be charged off after about six months. Then the debt will then be sold to a collection agency. The worst that can happen - depending on what state you live in - is that you can eventually be sued and perhaps have your wages garnished. Some states do not allow you to be sued for credit card debt, so you might want to check into that.

See if the credit card companies will work with you. If not, do what you need to do to pay your rent and buy groceries and utilities. It won't be a fun ride, but they can't put you in jail.

Answer 4

If it is THAT bad, don't pay them. When choosing between a roof over your head and food, well..you have your answer. If you continue to pay and you end up never paying it off anyway, why send anything? When they start calling, and they will, tell them not to: by law it becomes harassment if you ask them to stop and they continue. They will say all kinds of things to make you pay.

The other option is to go to www.moneymanagement.org and see if they can consolidate and get some of the interest down and make one lower payment per month to them.

Sounds like you need help. Try to get some assistance like welfare, food stamps, Section 8, etc. It is for people like you that those programs were created. If you can relieve some of the debt you could get back into school or get some kind of training to get better pay.

Good luck. I've been down a couple of times, but always came back. You can do it.

Answer 5

Find a reputable not-for-profit credit counselling agency. They have the experience, the knowledge, and many times special contacts with credit companies to make sure everything gets done properly, and can also advise you on whether it's even worth trying, or if you're better off going bankrupt.
Bankruptcy will wreck your credit, but only for a while. If you let the statute of limitations on collections run it's course, your credit will be destroyed for far longer than if you had just gone bankrupt.

Answer 6

call your credit card companies and inform them of your recent situation, ask for a permanent hold to your credit lines so that they don't increase the limits that you can spend and bring you further into debt! Your accounts if they do fall Delinquent for at least 30-90 days you will receive many calls try to bear with it and always try to make payment arrangements with them. If all is said and done and you can not make any further payments you could look for your local consolidated credit counselling service (always look for non-profit organizations as they generally do not charge fees.) in the yellow pages but you have to generally be behind on your payments (in debt) to qualify. Again I don't know what Country you are in so I hope this helps and is accurate where you are!!

Answer 7

call your creditors, everyone who sends you a bill. get all services turned off that you don't need to live. apply for food stamps now, and again in the future if your income drops. apply for low income energy assistance. tell the creditors that you will be severely limited on what you will be able to pay, work out a budget that gives everyone a equal amount of cash. electric and rent takes priority. they will more than likely work with you, (they will take something over nothing) even it means you pay interest only until you get on your feet. don't be surprised if collections call you. be ready to unplug your phone. they cant take you to jail, and hope that you can give them just enough to avoid judgments and garnishments. they are going to be mean and nasty, (the collectors) hang up on them or read them your right under the fair debt collection act, and don't let them scare you. this will work themselves out.
http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm

Answer 8

I agree with PRO2cal above. All they can do is call you, send you hate mail, and basically piss and moan. Worse case scenario: They have a judgement on a piece of paper. Big deal. You have nothing, so what can they take from you? Sorry about your circumstances. I've been there with the credit cards.

Answer 9

You don't have to finish paying them. They can't do anything to you but put it on your credit which goes off in 7 years anyways. Don't sweat it. Forget about the credit cards. I wouldn't pay them another dime. They rip you off anyways.

Actually what I would do if your already screwed anyways is go and run them up even more and buy alot of stuff, then cut your card up.

Everyone I have heard that has a credit card has had nothing but problems. I've never had one and never will. I don't want one. I own everything I have and paid cash.

Answer 10

I agree, call and talk to the companies. They can ruin your credit, making your life miserable. You'll never have any hope of owning something in the future with no credit- call they may work with you. Good luck.