Credit Card minimums, can't pay them, what to do?

Question

Hello, here is my situation. I am deep into credit catd debt to the point where I can't pay the minimums. I don't have a job nor have I worked for many years. I have been doing things on ebay and the such to make the money to pay the cards but it's catching up. If I would get a full time job it wouldn't be enough to pay the minimums.
I own nothing. Live with family. Own a car that isn't worth more than about 1000.00. so basically I have nothing to my name except this debt. I am currently starting a business but this will take sometime to get going and to able to make enough income to pay th cards.
Any advice on what I can do? Some are smaller but still too high to pay off in one chunk.
Any ideas would be great! thanks

Answer 1

Get a job. Then get a second job. Do everything you can and more to attack the debt aggressively. If you got into the mess, no one but you can get you out of it. The debt seems to be only the beginning. Even if you weren't in debt you sound like you'd only be treading water. You need to work harder than ever before and pay the minimum payments on all of the cards and then whatever money you have above and beyond that needs to go to the card with the highest interest rate. Once it's eliminated, cut up the credit card and DO NOT take out more debt. You are paying out tons of money for the "privilege" to borrow money that you can't even repay and it's taking you down in a vicious spiral. Good luck!

Answer 2

I agree with the first post. Get a job just to pay the minimums and then get a second job to pay the principal down. Even if you worked at McDonalds, making $5.15/hr working 40 hours a week, you'd make $824 per month to pay on the minimums. Given that you have no other expenses, this shouldn't be too much of a stretch, right?

If that is not a viable solution, go to see a credit counselor first before you default on your loans. They will negotiate with your creditors to work out a payback schedule. Now I tell you this knowing that this is going to affect your credit rating, but not as severely as a bankruptcy. If you declare bankruptcy, you will not be able to purchase anything on credit for a long time. Plus, with the new bankruptcy laws that were passed last year, you will still have to pay everything back over time.

good luck, and make sure you avoid credit cards in the future. They are truly a destructive tool that America is become very addicted to.

Answer 3

If a full time minimum wage job won't pay the minimums, I'm assuming you have at least 15,000+ in credit cards debt. That's at 36% interest with a 2% payback plus the interest as a payment.

First look in the phone book and look for some free credit counseling, they can help set up payment plan with with credit card companies.

Then get a job, flipping burgers, or whatever, you need cash coming in. Now it not the time to start a business, unless its going to bring in CASH NOW.

You can start the business once you are out of debt. Beside where are you going to get the money to start a business, with all this credit card debt? If you have money to start a business, then you should pay some of that credit card debt first. And yes I know how much money it takes to start a business, even if its a pure service business. If it's not going to bring in cash now you can go to work for someone else and bring in cash, which is what you need.

The credit counselors might recommend that you file for bankruptcy, and if you are in really deep that might be the only way out.

So you need to ask for help. You MIGHT be able to do it on you own, but it'll be much easier if you have someone to help you.

Answer 4

full time work would not pay the minimums? wow. wonder why they let you get that far. wonder why you let it get that far. doesn't seem too wise, when you go to store and buy five dollars worth of food, you pay six for it. of course you've been using the card cause you didn't have the five bucks, i realize. there are debt consolidation programs, but that's just more interest tacked on top of things so that that five bucks in groceries that you payed six for back in december is going to cost you another buck. maybe time to go get a job. maybe get two jobs. and start living out of pocket for awhile. you know, the old "if you have no money, you can't afford it" routine.

time to start negotiating repayment. if they send you to collections then you get even more debt and you'll lose any credit standing you may still have. you don't mention the amount you owe, but if a job can't pay the minimum charges than it must be substantial. might want to look into bankrupcy.

Answer 5

1. Cut up the cards and stop spending. You can not improve your financial situation and future if you don't increase your wealth. Pay yourself first by NOT spending.

2. Write a formal letter to those you owe. Tell them you have a lack of income at this time and that you are willing but not able to make minimum payments. You should state that you intend to satisfy the debt, not default on it and you will make some form of payment every billing cycle. It is very important that you send some amount, even if one cent, every payment cycle. I did this once in college and I did not hear from any creditors nor the companies themselves. After about 4-6 months I was back on track and saw no evidence that there were any ill effects. They did not even tack on a bunch of fees, paying every bill on time is more important than the amount, at least in my experience. There are no guarantees of course.

Answer 6

Sucks to be you.

Get a real legitimate job. Get a 2nd one. Curve your spending habits to buying stuff you only need. Consolidate your debt, and negotiate with you debtors on the interest.

I would strongly suggest putting off your business plans. If your business goes belly up, you will be massively screwed.

Also, consider bankruptcy.

Answer 7

Contact the credit card companies to see if you can work out a plan to pay lower minimums on a temporary basis.

To raise some extra cash hold a garage sale, collect and sell aluminum cans,hire out to do odd jobs (what skills do you have? painting, plumbing, house repairs, mowing?).

Answer 8

You can contact them and see about working out a payment plan.

In your case though you might be better off going to a consumer counseling center and get their help. It's possible to maybe consolidate all your payments to lower them.

Do it now, rather than later though. The longer you wait, the worse it'll be.

Answer 9

I can devise a strategy for you. Email me if you are interested. Don't if you aren't.