What is the best choice for a person with a large amount of debt and a low income job?

Question

I only want to hear legitimate ideas. My debt was incurred because of an on the job back injury. I was hurt and couldn't work or pay my bills. I unfortunately used my credit card cash option to pay many bills. I own a house worth 85,000 and I owe 85,000. I have close to 30,000 in credit card debt and of course I barely make enough to pay my mortgage and electric. I have looked into debt consolidation, credit counseling, and bankruptcy. I used to have good credit and it is terrible now. I would appreciate any sound legitimate advice that will dig me out of this hole. Please give me ideas that are not scams. I need to know my best option.

Answer 1

well get a job and pay off the debts. if you got hurt on the job why didnt you get workers comp? doesnt add up buddy.

Answer 2

I so know what you mean. No one plans on becomming disabled. The same thing happened to me and I didn't have disability insurance.

I would check my mortage contract to see if any insurance policy is part of the contract. Some contracts do have a disability insurance rider. That would be the biggest help.

Also if you just happened to sign up for disability insurance on any of your credit cards that would be a big help too.

Baring that there are the following possibilities:

Your church may have funds available to assist you. Mine does and it is a blessing believe me.

Some power companies have funds set asside to help people pay their power bills and bill averaging plans that can help too.

Social Services can help with money for food and health care under some circumstances.

Many Churches and Charity organizations have food banks that can help you will food needs also. They also have some assistance as it pertains to power bills.

The best you can do with the credit card companies if you don't want to file for bankruptcy is to make a payment plan with automatic withdrawals from your bank account.

The other option is to sell the house and get something smaller but if the fair market value of your house is only 85,000 then you probably won't find anyplace at a lesser cost. And right now is not the time to try and sell unless you absolutely have to.

I'm sorry you are in the situation you are in. I know if it weren't for the church I'd be looking at homelessness myself.

Answer 3

It's difficult to help you here because you're not mentioning your qualifications. But the best thing for you is to find a second job; from home if possible so that you don't have to waste time travelling.
Manage your time; you need about 8 hrs a day to sleep and eat, use the rest for work, work and work.
Manage your budget: pay your bills first, then your depts. Keep just enough for your basic needs.
Manage your health: don't go running naked in the snow you can't afford to get sick. Prevention is better than care.
Manage your friends: Keep only the ones you can count on and discard the rest.
Manage you debts: talk to your creditors and explain your situation, assure then that you have no intention of running away and see how they can help you. I'm sure they will.
.... and Good Luck!

Answer 4

Well, most land lines cost about $25 for unlimited local calls. $100 a month for talking on the phone is a LOT. Get rid of it. Spend $30 on an answering machine for your home phone, that way you can call people back when you get home. That would save you $75. In six months, that would pay off $450 of your credit card. You also might consider selling things of value that you own for liquid cash to pay down the debt. Do you pay monthly bills for television viewing? You could try shutting that off, and getting DVD's from your library (free), and read more books, and watch whatever TV comes over the airwaves. You have to decide what your priorities are. If it's not rent, electric, heat, gas or food...then it is probably in the "want" category, rather than the "need".

Answer 5

stay away from anyone you have to pay to get rid of your debt.
I would make sure i pay my mortgage and food and utilities first. Do a written budget. It will help. If you can get a second job and pile cash on the cards, do it. If you cant pay your cards you cant pay. They are not gonna take your house as long as you are paying the mortgage. they will settle for less than what you owe down the road. So, pile cash in the bank and wait for that to happen. morally you need to try and pay the cards.

check out daveramsey.com and listen to his radio show or tv show on Fox Business News Network. He has lots of good advice on money and debt.

Answer 6

Ok, here is the deal. I just won a federal social security disability case last week after a 4 year fight. I had no income for all this time, and I maxed out my credit cards as well. Since this is unsecured debt, they will write it off. Bill collectors will try to hound you, but have no contact with them. Your credit will suffer for a while, but believe me, you will begin to get those offers in the mail again. Credit card companies have to be the greediest, filthiest companies around, and they deserve what they get.

Answer 7

please take it seriously when i say that you should live a bread and water life-style. live only with what you need, and sell what you don't need. all you need is a bed, a couch, a fridge, a stove, food, clothes(preferably cheap) water and light. cut back on junk food and stick to the bare necessities. stop eating out and going out on weekends to the movies and just chill with friends. you'll save a lot. Also, never do a debt consolidation. they are scams, all they do is give you smaller payments which equal more time in debt.

Answer 8

Question, if you where hurt on the job did you not collect workmans comp? If not why not?

Answer 9

i would contact a non-profit counceling service.. you might be a good candidate for bankruptcy..