I am in a rough situation in which I became unemployed, and I'm not able to go back to work till after January of 2008. but in the mean time, I have 4 kids with no income, with the exception of about $100.00 monthly. I do however have good credit and lots of credit cards.
So my question is, have you ever solely relied on using credit cards to fully pay your rent and bills, until you started back working ? I figure the $100.00 could pay the monthly minimum due on the credit card.
Has anyone else had to do this ? if so, what was your experience ???
2007-10-15 11:15:57 · 7 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
It depends on whether or not if you can draw unemployment; if you were laid off "involuntarily" - in that case you could go to your local employment commission and draw unemployment, which would be some income to help your family. If you are able to live on your credit cards - groceries, gas, rent, etc... - then that is what you have to do. Don't make the mistake of overextending yourself with your credit cards...do keep in mind that if you are only relying on $100 coming in, that if you do use your cc's you risk the minimum payment going up (of course), depending on the balance you already have on your cc's.
I have not been in this situation myself, and can imagine it will be rough. Are you not getting child support? What about government assistance, food stamps/wic?
I am sure that this is a temp situation, there is assistance out there for parents in this type of situation. Good luck to you.
2007-10-15 11:29:05 · answer #1 · answered by eZonis34 4 · 2⤊ 0⤋
This is a baaaaaaaaad idea, and you should avoid it if at all possible. Credit card debt is possibly the worst sort of debt to fall into, because the interest rates are so high. You will also trash your good credit will this temporary solution.
Use your good credit to take out a personal loan, instead. Use the money to take care of your living expenses until you start working, and then make paying back the loan on time your first priority once you have income again. Try to get the loan from a reputable bank or financial institution - be cautious of companies that offer fabulous deals but are really just loan sharks in disguise.
Also, get down to your local library tonight and start checking out personal finance books - they can be wonderfully empowering and inspiring, and most are written in simple, easy-to-understand terms.
Some good, easy reads:
-The Complete Idiot's Guide to Personal Finance in your 20s and 30s
-The Complete Idiot's Guide to Managing Your Money
-“Smart Women Finish Rich” or “The Automatic Millionaire”, by David Bach
-any Suze Orman books
2007-10-15 18:48:01 · answer #2 · answered by teresathegreat 7 · 1⤊ 0⤋
How do you have four kids and only $100/month in income.
If your children have fathers (which they MUST, that is how human procreation works), their fathers must pay child support. Get that worked out PRONTO.
If you have no income, you qualify for public assistance in the form of cash benefits, food stamps, WIC (until your babies are 5), and rent assistance.
Contact your utility companies and see what programs they have for the indigent.
If your children's father has passed away, your kids qualify for SSI survivor's benefits. Contact your local Social Security office.
DO NOT use your credit cards. You will dig a hole so deep you won't ever be able to get out. Cut them up NOW and call and cancel any card with a $0 balance!
2007-10-15 18:28:57 · answer #3 · answered by frissy 3 · 2⤊ 0⤋
I would not suggest using credit cards to rely on as a source of income! I suggest going to apply for unemployment or search for some other form of financial aid. Also check with local churches and foundations and see if they could lend some assistance to you!
2007-10-15 18:25:28 · answer #4 · answered by little_sis1978 2 · 2⤊ 0⤋
DO NOT use the cards to support yourself. It will only make things worse. I would IGNORE the cards until you have enough income to pay for food, housing, utilities and transportation. Even if they sue you, which they won't in 4 months, they CAN'T collect what you don't have.
2007-10-15 19:58:31 · answer #5 · answered by STEVEN F 7 · 0⤊ 0⤋
Living on credit cards is not a good idea.
2007-10-15 18:43:03 · answer #6 · answered by Anonymous · 1⤊ 1⤋
First you apply for unemployment. Next you set up an eBay account, and sell your unwanted junk.
2007-10-15 18:20:26 · answer #7 · answered by Mr. Prefect 6 · 1⤊ 1⤋