I am in major trouble with my credit cards.?

Question

I am three months behind on making a payment and I do not have the money to pay them. What should I do and should I consider calling a Credit counselor and if so can anyone suggest one.
I have a home equity loan, car loan, three credit cards and my bank account is over drawn. All of my house bills come stright out of my bank account so now my account is being charged 35.00 everytime this happens. For this month I owe approx. 2500.00 and have no way of coming up with that money. Someone please help me I am desperate.

Answer 1

Whoa. OK, first things first--stop the automatic bill pay on your checking account. Usually that's not a bad idea, but in your case, it's just getting you in deeper. (You should look into overdraft protection. If your bank doesn't offer it, find one that does.) Prioritize your bills. Not everything has to be paid immediately.

Next, unless you live somewhere where you absolutely must have a car, I would consider selling it in order to try to pay off that car loan or use the cash to put toward the cards.

Yes, consult a credit counselor. I don't know of one off the top of my head, but if you put in a search on the Internet, I'm sure you'll get tons of listings. The drawback with them is that they do charge you a fee right up front for their services. The upside is that they consolidate your debt and help negotiate lower interest rates with your creditors. If you can't afford to do that, then contact your credit cards yourself and see if they'll set you up on a more affordable payment plan.

Are you working right now? I'm wondering why you say you have no way of paying any of this money back. If you are unemployed, that is obviously the most important thing: Find a job. Maybe two. Donate plasma, do some paid surveys, whatever it takes. In the meantime, you might want to start selling some stuff--clothes, books, jewelry, appliances. Try listing stuff on craigslist.com since it's free to post there. Also cut back wherever you can. Cancel your cable, get a cheaper phone plan, take mass transit, pack your lunch instead of eating out, that kind of thing.

Ultimately, it's most important to get your bank account back in black and deal with your home loan. The credit card debt is bad and should be gotten under control, but the worst they can really do is harass you for payment. They can't garnish your paycheck or anything like that. But ending up homeless would be the worst scenario. So it's time to hustle.

Answer 2

The first, most important thing is to call the creditors you have and tell them you are having difficulties making the payments. Explain the situation, and they may be willing to negotiate with you. If that isn't enough, or you can't do it on your own, go to a bankruptcy lawyer. Be very careful about "credit counselor's"--if they aren't lawyers or accountants, they may not have the necessary expertise (there are some fraudulent credit counselors). Your local Better Business Bureau may be a good place to look for legitimate businesses.

Answer 3

It would appear you are not grownup up quite yet and starting to make sound financial decisions. IF you were you would realize that the only responsible user of credit is one who buys today and pays it off within that billing cycle NEVER carrying over a balance. Period. Then you do not have to worry what is happening with credit interest rates because you will NEVER pay a dime in interest. Any card you could even get, if you could, will be a very low limit and a very high 2 digit interest rate that YOU would be concerned about because you want to carry a balance. So before smarting off about your maturity first show that maturity in your decision making.

Answer 4

Start by looking around a good credit counseling company, and not become a victim of one of the various credit counseling scams that are prevalent today. Do not be misled by any ad that assures you quick fixes for your credit report. This is an impossible promise. Instead search for a honest company accredited to Consumer Credit Counseling Services. Then fix a meeting with a professional credit counselor, and apprise them about your debt situation. Do not omit anything as they will require the entire information to draw up re-payment plan according to your situation.

Answer 5

I waited too long and ended up in Bankruptcy.
You have serious financial problems and need the help of a professional in these matters. Make an appointment to see a Credit Counselor as soon as possible. Believe me, you will find it a huge help with your worries to know that you have someone experienced in these situations to help and advise you. Do it soon , and I wish you good luck.

Answer 6

Call Consumer Credit Counseling NOW! I got myself into the same boat a few years ago and let me tell you it will only get worse if you don't do something about it immediately! I finally went to CCCS about a year and half ago and it helped so much, no creditors calling and I restored my credit rating. I wish I had put a halt to the mess I made earlier though. Don;t make the same mistake I did - it can ruin your life. Call them now! Good luck....

Answer 7

Best thing to do is call the credit card company's, see if they work something out, then talk to a credit counselor-they can help you get back on track.

Answer 8

Call Consumer Credit Counciling right now. If they can't help you, then call a credit counselor--you know, the ones you see on TV. I know what is like. When I got a divorce, my cash level went from two incomes to mine only. (and mine was the lowest income)

Answer 9

You need the help of a credit counselor -- sooner rather than later. Try your local yellow pages, I'm not sure I trust some of the ones you see advertised on TV.

Answer 10

pay each credit card bill with what you can afford...if it's $50 that month, send them a check for $50 (most credit card companies reccommend $10 to pay so you won't get in trouble but mind you - there's a refinance charge if you do this!)