Need advice on fixing credit. Currently in a bind, and with greatly reduced income. Credit card fees keep up?

Question

I have 5 or 6 credit cards, and sudden GREATLY reduced income to the point of barely being able to afford food or gas at the moment. I did not have savings and am now at least 160 days late on almost all of my credit accounts, so here is my picture and I need advice on the best course of action for me to take. Next month looking at about another average $25 late fee and $35 over the limit fee for each account. They are small amounts mostly, but they add up.

1 Retail Store Credit Card - Account closed due to technical error (wrong checking account # entered, so they canceled it) but owe $200. Monthly payments were $20. Now $100 in fees owed,160 days late.

1 Installment Loan - 160 days late. Monthly payment of $30. Now owe a payment of $96 but very low late fees. Total balance: $750

2 High Fee Credit Card - 160 days late. Currently owe around $70 on each with current fees. Over the limit on both. Est. Balance on first: $270 On second: $370.

Now low credit score, loan not option.

Answer 1

You have 3 options:
1 - lower your expenses and use that money to pay off your credit cards. most people wast money in everyday expenses for example - do you need that coke and chips from the machine @ work. This is $2 a day for 20 work days is $40.
Park the car and walk more or carpool.
2 - increase your income. Get a second job.
3 - file bankruptcy - this will ruin your credit for at least 7 to 10 years, and you will find it expensive to recover with higher interest rates on everything, as well as being denied credit for a lot of things.
Take responsibiltiy for your actions and if you chose 1 or 2. Personally, I would not choose 3. Call everyone that you owe money too and work out payment plans with them. Get everything in writing and stick to your new payment plans.
ONCE you get out of this mess, reorganize yourself.
NEVER live without savings.

Answer 2

Well you need to find a way to reduce your expenses (it'll be hard but you'll have to find something) and if possible find another source of money (but don't borrow any money, that'll make things worse).

If you've got 5 or 6 credit cards that's a good hint that you haven't been managing your money and that you got yourself into this mess so you will need to change, once you've managed to get your expenses below your income you can start paying off your debts, for a start you should put the minimum at each of them with the left over going to whatever has the highest interest rate.

Then keep at it and you'll eventually pay that off and be able to work on the next highest.

If you can't manage to get your expenses below your income you might need to file for bankruptcy which will hurt you quite a bit but in your situation you may have no choice. That's not a decision to be taken lightly though because of the consequences it will have on you.

Answer 3

You are asking for help very late in the process, but the positive thing is you are trying to be responsible during difficult times. An excellent resource are consumer credit agencies that charge nothing for counseling services. They will help call your creditors , eliminate some of the service charges and in some cases have some of the credits be extended without penalties. If such a service charges you, they are cheaters and you should avoid them

http://www.consumercredit.com/

If you are able to work and out of a job, you need to try collect unemployment and look for any job fast.

Call consumer credit ASAP. The good news is, I have seen much worse. Somehow I think you are in a temporary hole. And once you get a job will be doing fine

Answer 4

Debt contract companies will trash your credit and maximum mastercard companies refuse to play and right now sue you. whether they do surely settle a debt, the account would be suggested to the credit bureau as fee off/settled -- a detrimental. you apart from would get a 1099 for the forgiven ingredient which should be secure on your earnings tax return. ultimate thank you to cut back your mastercard debt is to give up charging on the playing cards. Take each and every penny you may squeeze out of your funds, and throw it on the optimum activity fee card, whilst making minimum money at something. while the optimum fee card is paid off, circulate to the subsequent till they are all paid in finished.