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Have you ever walked away from your CC debt?

Barb09 said:
For those that disapprove...

What if your 12 ccs minimum balances is $840 a month and you make $1200 and have rent to pay? electric? gas?

It is a sucky place to be....I know others that have creditted themselves into a place that is impossible to dig out of.
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I agree that it's a sucky place to be and do give her credit for asking this question openly. That said, unless this excessive debt was caused by a job loss or a medical debt, there is blame to be placed on the individuals who managed to rack up so much debt.

Many of us, especially on a board like this, live below our means. Save up $ (like Jill talked about) before buying something, or use our credit cards wisely (earning points but paying them off monthly.) I would love to have a nice fancy car, eat at high priced restaurants, and shop without looking at the price tag, but I don't. I know how far my $ will go and it won't go that far. I have the same issue with those folks who bought way more house than they could afford.

Personal responsibility seems to be a thing of the past and it's a major reason this country is in the mess it's in.

:ranting:

Ok, how about we use the above as a general statement since I just saw your reply explaining your expenses. : )
 
Kewpon, I apologize if my post upset you. You have been through alot, no doubt. Contact a lawyer and see how easy/hard it would be to file bankruptcy if that is what you want to do.
 
Do what is best for you and your family.

I think you are very brave to post this question knowing darn well what kind of responses you would get. I believe you when you say you are not taking this lightly.

Follow Steve's advice and contact him via PM.
 
kewpon addict said:
I ask because I am in seriously over my head...have tried calling these companies and NO ONE cares...I am seriously afraid of being taken to court if I quit paying my CC's but honestly I would have so much more money to work with If I DIDN"T have the debt. So I am asking seriously has anyone been here and done that? If so can you please tell me what will happen? Will it just trash my credit score or will they take me to court..any advice is appreciated! TIA.
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I know this feeling all too well. And DH did it to us and hid it well until it all blew up in his face. We have talked to a lawyer and have been told to declare bankruptcy but are trying very hard not to. We got ourselves into this mess and are trying hard to get out. We won't roll it into a home equity load as we have a private mortage and don't want to ever risk losing our house. It's not much but it is Home.

My understanding is if you stop paying them they might agree to a settelment of part of what you owe them. But it will trash your credit and you need the settlement $$ upfront.

Try calling the credit cards and explaining, ask for supervisor if needed. They might lower your interest, and if they say they can't ask what can they do for you? I've had money credited back to me account and rates lowered. Not every card does but every penny helps. I call every card, every month. It sucks but it helps.

Dave Ramsey seems to be the plan that works best for us. We don't follow every piece of advice but most of it works for us. We've been at this 3 years and it's a long road but we're making real progress. One day at a time.

OP- please feel free to pm me if you want to chat more privately. I know the sleepless nights and how heavy the debt can feel on your spirit.
 
mama22angels said:
Kewpon, I apologize if my post upset you. You have been through alot, no doubt. Contact a lawyer and see how easy/hard it would be to file bankruptcy if that is what you want to do.
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No just trying to help peeps to understand that I NEVER meant to get to this situation but it has been one thing after another...didn't realize people would have such strong opinions about it. I remember when I went to college I thought I will NEVER have to scrimp and scrape the way my parents did..I thought I will have my bachelors degree and will NEVER have to worry..now I can say that that was wrong. I am glad I went to college but other than scholarships I had to take out many student loans on top of it and I have been paying those off for many yrs. now on top of everything else. I have taken peoples secondhand clothes for free...we almost NEVER eat out. I do NOT get manicures or pedicures or any of the other things that peeps do. I do NOT drink coffee....I do the best I can it is easy to get in over your head when one emergency after the other happens...I live in the northern suburbs and so we need a car to get to work..public transpo. here sucks. I have learned a lot in the past 7 yrs of my life and if I got out from under it now I would have an emergency fund and NOT make the mistake of credit cards again...
 
kewpon addict said:
No just trying to help peeps to understand that I NEVER meant to get to this situation but it has been one thing after another...didn't realize people would have such strong opinions about it. I remember when I went to college I thought I will NEVER have to scrimp and scrape the way my parents did..I thought I will have my bachelors degree and will NEVER have to worry..now I can say that that was wrong. I am glad I went to college but other than scholarships I had to take out many student loans on top of it and I have been paying those off for many yrs. now on top of everything else. I have taken peoples secondhand clothes for free...we almost NEVER eat out. I do NOT get manicures or pedicures or any of the other things that peeps do. I do NOT drink coffee....I do the best I can it is easy to get in over your head when one emergency after the other happens...I live in the northern suburbs and so we need a car to get to work..public transpo. here sucks. I have learned a lot in the past 7 yrs of my life and if I got out from under it now I would have an emergency fund and NOT make the mistake of credit cards again...
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Do you have student loans now? If you do, you can postpone those payments pretty easily.
 
mrs.melton08 said:
Do you have student loans now? If you do, you can postpone those payments pretty easily.
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Yes, I do, but, I have done that in the past for a yr. or so and have decided that I NEED to keep paying them in order to get rid of that debt...
 
kewpon addict said:
Yes, I do, but, I have done that in the past for a yr. or so and have decided that I NEED to keep paying them in order to get rid of that debt...
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I Understand. But if it comes down to having everything taken from you for not paying the things you can't postpone, if the loans can be deferred I would start there first. BUT I am not living in your shoes right now, just wanted to give some advice.

Taxwise, do you all get a refund regularly? Can you plan ahead a little to pay off some things with the refund.


Other than that I just know from many clients i have worked with that they will and can take your home, car and clear out your bank accounts if you don't pay. Plus you have to go to court and explain why you coudn't pay, you CAN NOT get around that, they will issue a warrant for you.
 
kmjlovesjesus said:
can you refinance your house and roll the debt into the house payment? I have had friends that have done that-with
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NO NO NO!!!!!

DO NOT REFI YOUR HOUSE TO PAY CREDIT CARD DEBT!!

PSA over!

Kewpon -

Go to the library. Get any book by Dave Ramsey. Read it with an open mind and heart. Understand that you are responsible for those debts and you CAN pay them.

If you decide that's not for you, get a bankruptcy attorney that will guide you through the process. It is very painless. Too painless sometimes.

Not judging either way. I have been bankrupt. That 2nd chance didn't set me straight, it took another 6-7 years and Mr Ramsey to put me on the right path.
 
Agreeing with kathy on this again! NEVER roll your unsecured debt into secured debt. If you can't afford your CC debt, you will NOT be able to afford it on top of your and then you risk losing your house! All you are doing there is changing the name that you are writing the check to. PLUS your CC debt undoubtedly includes interest...roll that into your mortgage and you are now paying interest ON your interest...you will exacerbate the amount of the debt.

Is your credit shot (yet)? Or does the credit world still think you are worthy but you know you are ultimately drowning? If you are still credit worthy CAREFULLY shop for a 0 percent or very low percent (lower than you have now) credit card with which you could qualify for a balance transfer which will lower your payments. Pay SOMETHING to all of them every month. Showing that you are TRYING goes much further than not paying anything because you can't pay all of it.

:huggy:
 
I second, third, fourth, and fifth the Dave Ramsey. Take a few days to read some of his stuff. Really focus on the stuff he has to say about "when you can't afford to pay."

What he has to say makes sense. Bankruptcy is AWFUL, but not nearly as bad as not paying your bills for a few months. And coming back to them in a few months to negotiate. By then ... they'll be willing to talk.
 
Dave has a radio show and when I am feeling really down about our situation I listen to him. So many people are struggling and you are not alone.
 
Lauri said:
Dave has a radio show and when I am feeling really down about our situation I listen to him. So many people are struggling and you are not alone.
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:shesaid:

Honestly, My DH was in that position before we married. He lost his job shortly before we met and just stopped paying everything. His balances were so low and it was during the up time in the economy (well more up than now) so somehow he got away with it. He was still young so he had no property.

We got married 3 years ago (the 30th is our Anniversary :) ), he fixed his student loans, but the rest was already 4-5 years charged off so we made the decision to let those things age out, but we also decided to get an emergency fund in place and we were very proud and happy to be able to pay for our complete roof tear off of $6,294 in cash due to saving and having an emergency fund. So like I said previously, if you do it make sure you have no real property to loose and start off TODAY saving and making sure you are never in this predicament again.
 
That is the one thing that I have avoided as rolling everything in to one payment. Some credit cards are low and I would be paying much more. I would say half of our debt was from living high on the hog. The other was for emergencys that were would be able to pay when dh was working. The economy tanked it minimums doubled, dh was hardly working and I was pregnant. Since we got the mortgage and things got worse for us I made the decision to pay the mortgage no matter what. I pay cc as I can. I will be late on some cc each month, but it is getting better. When dd was in the hospital I was late on some bills and would get calls and was offered a payment plan. I few went 0 percent interest and a set payment for 5 years. I have a few cards that minimums will pay off in less than 5 years. I will pick up more hours and will sell things to make extra cash. I go strictly cash unless it was the car repairs which we found out is still not fixed.

Now I have thought about this question with my BIL. They are really behind on alot of things which doesn't include cc debt. I have asked if it is something they should think about if they can not make enough to pay what is owed. I am not saying it is right especially in their situation as they have created it. Not knocking you because I have been where you are, but wondering if they should walk away from things if they can't pay enough to keep it.
 
mrsmom said:
:roll:
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I had a friend that had to file bankruptcy many years ago. The way he told the story of the first meeting with the lawyer, after discussing the process and fees involved, he agreed that bankruptcy was his best option and asked the lawyer if he accepted Visa. He was completely serious and didn't realize why the lawyer just stared at him.
 
I also agree with the many, many Dave Ramsey comments.

He gives real plans and he's been there!

Beyond that anything that can be sold - sell . . . clothes to small for the kids - consigntment shop, stuff sitting in storage, jewelry, extra car, etc

Any other extra expenses that can be decreased? Cable TV - dump it, Cell Phone - drop to minimum or dump it, Gym Membership, etc

We have all made some mistakes with money, some are just bigger then others.

Also - for the future - don't put medical bills on credit cards, just pay them off as you can a little each month, paid my gall bladder off at about $50 a month
 
Just throwing this out there.... Why would it be ok for one not to pay for their expenses when I have to pay for mine? I do not come from a wealthy family, have had to work for everything I have. I like most people have emergency's that come up. Yes I have very little cc debt and a very low intrest rate 8% have had that for many years, credit score plus years at job equal better credit. It is not a fair system, I believe that schooling is overrated(never will I tell my kids that)but while you were out get your education and graduating (in debt) I put in 4 years of work in and am at least 160,000.00 ahead of you. So very hard to make that climb uphill. Scary for our youngens.
 
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