Retired With Debt on Social Security. What Should I Do? – Kent

This question was submitted to me through the GetOutOfDebt.org site. You can ask a question online here.

Because of the volume of submitted questions, I am behind in personally answering every single one. I need your help. I am publishing the question below for you to answer. Please help this person by adding your response and advice in the comments section of the original question. Click here.

“Dear Steve,

Retired one year ago.Have $37,000 in credit card debt.Payments total $1,200 and my SS is $20,000. I am not behind but struggle to make payments. Several cards have uped my rate to 30.0% only do to my debt to income ratio.Again, not behind but getting nowwhere with cards increasing rates. Considered Banko or walking away. Could you help.

Need to get Credit card companies to reduce or suspend interest to get balances paid off. Help.

Kent”

Check out your debt relief options using The Amazing How to Get Out of Debt Calculator. It's free, easy, and anonymous.

Other Related Articles to Read

  • Bev Clark

    Under the Fair Debt Collection Act – his Social Security and any pension money plus $125,000 equity in a home and modest car ($2500.) is exempt from 3rd party debt collectors. He needs to get this information from his Senior Rights Assistance or Attorney Generals office for his state. These are both Federal law and individual state Debt collection laws. He may decide to just “Leave it Behind” and concentrate on living on a “cash” basis. He’ll need to get his spending down to the limits of his SS and Pension. In Washington state we also allow $175.50 net working wages per week to also be exempt. He also needs to answer any court Summons and or go to court to show he’s “Judgement Proof” to the judge. Rest easy and get on with your life.

  • http://TheDebtDance.com Morgan

    Hello Kent,
    The credit card companies are screwing you with those interest rates. I remember, and you probably do, too, when rates that high were against the law.
    With all that you are dealing with I suggest seeing a bankruptcy attorney. I am concerned that if you “walk away” you will stress and you most likely will be found. Not a great way to live your life.
    Here’s a joke I think you’ll appreciate:
    Abe and Esther are flying to Australia for a two-week vacation to celebrate their 40th anniversary. Suddenly, over the public address system, the Captain announces, “Ladies and Gentlemen, I am afraid I have some very bad news. Our engines have ceased functioning and we will attempt an emergency landing. Luckily, I see an uncharted island below us and we should be able to land on the beach. However, the odds are that we may never be rescued and will have to live on the island for the rest of our lives!”

    Thanks to the skill of the flight crew, the plane lands safely on the island. An hour later Abe turns to his wife and asks, “Esther, did we pay our $5,000 PBS pledge check yet?”

    “No, sweetheart,” she responds.

    Abe, still shaken from the crash landing, then asks, “Esther, did we pay our American Express card yet?”

    “Oh, no! I’m sorry. I forgot to send the check,” she says.

    “One last thing, Esther. Did you remember to send checks for the Visa and MasterCard this month?” he asks.

    “Oh, forgive me, Abie,” begged Esther. “I didn’t send that one, either.”

    Abe grabs her and gives her the biggest kiss in 40 years. Esther pulls away and asks him, “What was that for?”

    Abe answers, “They’ll find us!”

    Good luck. Morgan at TheDebtDance.com

    Morgans last blog post..There cannot be a stressful crisis next week. My schedule is already full.

    • http://GetOutOfDebt.org Steve Rhode

      Morgan,

      LOL. So funny.

      Steve

  • d smith

    I am in the same boat, and I am considering just walking away; my question is can they touch your social security? or retirement? The credit card company has not been fair with me, and I have never been late.

Google Plus Submit a Tip Ask the Debt Experts