Kim

“Dear Steve,

I’m paying credit debt on time not getting anywhere with minimum payments. Husband laid off from work 15 months. Not using cards just trying to pay off. Income is very limited.

How can I get ahead with paying off cards. Income is tight. Getting behind on other bills (house, gas, electric) husband laid off from job over 15 months, now has job that pays less than half of what he had before.

We’ve really cut back on everything and not getting ahead. Being frugal in hard times. Tired of stressing out all the time.

Thank you for your help.

Kim”

The Answer:

Dear Kim,

The issue here is that your income adjusted downwards but your expenses did not. This is a chronic problem with contracts to borrow money. Those contracts are absolute agreements and don’t make any allowances for things happening, like layoffs.

Being frugal only goes so far and if you can’t manage to get the income back up, and you’ve already trimmed expenses, then maybe the time has come to start thinking about bankruptcy.

Bankruptcy can be a scary experience but it is a legal tool you can use to discharge your debt so you can attempt to make whatever money you are both making manage to keep a roof over your heat, the heat on and food in the cupboards.

While you are just making the minimum payments I am worried that unless you can get some breathing room in your monthly budget that all it is going to take is one unexpected and unforeseen event to through your finances in complete disarray. You should be putting at least $50 to $100 a month into a savings account to protect you from these money emergencies.

Continuing to just make the minimum payments is admirable and honorable but at some point don’t you have to financially plan to protect you and your family from future emergencies by saving? It seems like the only way to do that is through bankruptcy. Please contact a local bankruptcy attorney and ask for a free appointment so you can go in and find out what bankruptcy would mean for you.

Don’t be ashamed, be responsible and do the right thing to protect your family moving forward.

Big Hug!

@GetOutOfDebtGuy

The Answer:

Other Related Articles to Read

• This Time I Asked “Do You Think You Are a Failure When You Break Your Budget?”
• We Are Making Ends Meet But Have No Extra Money to Put Toward Our Credit Cards. – Sarah
• I’m Barely Making My Minimum Payments. What Can I Do? – Pete
• David Writes In “I Have No More to Give”
• Where Are The “Eager to Help” Creditors? – Steve
• Steve Writes In “I Want to Cash Out My 401(k) And Pay Off Debt.”
• How Do I Pay My Credit Card Bills and Still Have Money for Day-to-Day Expenses? – Maria
• Lower Your Car Payment. Skip It, Lower Your Interest Rate and Get Cash Back
• How Do I Get Out of Debt Without a Huge Credit Card Payment Every Month? – Allison
• Can You Help Me Find a Debt Consolidation Company That Will Work With Me? – Scott

Read the full article at GetOutOfDebt.org, click here: Kim is Stressing Out Trying to be Frugal in Hard Times and Make Ends Meet

“Dear Steve,

I am about $8000 in credit card debt and behind on payments. My interest rates went through the roof and I just cant seem to get ahead on the payments. This all started as a result of two job layoffs and backed up unemployment benefits. I now have a steady job but dont make the money I was and just cant affort the giant monthly payments associated with this credit card and still put food on the table and keep the lights on. Please shed some light on a company/bank that is willing to work with me, I have an excellent history with ontime payments up until about 6 months ago, and I intend to keep it that way, just need to get out between this rock and a hard place.

Thanks

Scott”

The Answer:

Dear Scott,

If you were not behind on your payments I’d suggest LendingClub.com, a peer-to-peer lending network that cuts out the banks. But since you are behind your credit score has probably already taken a hit and so I’m not confident about you getting approved.

The best alternative path for you now is to click here to find a local bankruptcy attorney you like. Make an appointment and go in and talk to them. Bankruptcy will give you protection from your creditors and a fresh start. Something no other solution can do.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Other Related Articles to Read

• Nobody Will Give Me a Debt Consolidation Loan to Pay Off My Debts. – Scott
• Unsecured Debt Consolidation and Personal Loans Being Handed Out at Record Rates
• The Best Day of the Week to Apply for a Debt Consolidation Loan
• Should I Get a Bank of America Debt Consolidation Loan? – Erica
• I’m Looking for Debt Relief for $20,000 of Credit Card Debt. – William
• Isn’t Now the Time to Consider a Real Debt Consolidation Loan?
• I Need a Debt Consolidation Loan. Can I Get One? – Melissa
• I’m Recently Married With Credit Card Debt. Can I Get a Personal Debt Consolidation Loan? – Tiffany
• Where Can I Go to Get a Consolidation Loan With a Better Interest Rate? – Jennifer
• I Just Invested in 33 Loans to Help People to Get Out of Debt

Read the full article at GetOutOfDebt.org, click here: Can You Help Me Find a Debt Consolidation Company That Will Work With Me? – Scott

The economic blues are hitting more and more people. I just learned that a friend of mine who works at a Bridgestone tire plant is on the bubble for the next wave of layoffs.

My friend and fellow Suzuki Burgman rider is known as the Smyrna Cowboy and he publishes a regular vlog on riding and life. And by the way, riding motorcycles is one of those things I love to do in warmer weather to find joy in life.

Here is his video discussing the upcoming layoffs. You can hear the worry and concern in his voice.

Other Related Articles to Read

• My Husband Doesn’t Seem Worried That He Lost His Job. I’m Freaking Out. – Tina
• Expect Tidal Wave Of Limit Reductions and Credit Card Closures to Hit Before Christmas
• Making payments but barely breathing financially. – Julie
• The Worry and Stress Over My Debt is Emotionally Draining. – KL
• Which Debt Settlement Company Do You Recommend? – Laura
• I Need Help Fast. They Want to Take Me to Court. – Luke
• 44 Lessons in Life for Debtors
• My Debt Situation Has Me So Worried I Don’t Sleep at Night. – Darcey
• Do I Wait for the Court to Dismiss My Chapter 13 Bankruptcy? – Asia
• I’m a Lawyer With a Law Degree From a Top Law School and I Can’t Find a Job. Michael

Read the full article at GetOutOfDebt.org, click here: My Friend and Fellow Motorcycle Rider is Worried About Getting Laid Off

Local card banks contacted for this story declined to comment on their financial outlook or the possibility of layoffs, but experts believe weak earnings will linger in the short term, and might even pose some long-term challenges to the industry.

“The increase in delinquencies in credit card debt is a major cause for concern,” said Robert Dye, senior economist for PNC Financial Services Group in Pittsburgh. “The scale is not as big as the home mortgage problem, but it definitely adds stress to the financial services industry at a time when they don’t need any more stress.”

Some are even predicting a fundamental change in mindset toward debt, prompting consumers to put off purchases, buy less-expensive substitutes, eat out less, and rethink their propensity to do so on credit. Consumer borrowing fell for the first time in more than a decade in August, the Federal Reserve reported last month. The decline, at an annual rate of 3.7 percent, reflected a sharp drop in the category of borrowing including auto loans and a smaller decline in the category including credit cards.

Last week, the digital-market analysis firm comScore.com, said that credit-card applications at the top 10 online sites dropped for the first time in the past five quarters, dropping 6 percent year-over-year in September. Last year at this time, applications were up 26 percent year-over-year. Consumers are doing all they can to take out additional lines of credit, comScore.com Vice President Jennifer Lanouette said.

Click Here for totally free debt help, advice and answers.

Source: Next big worry: Credit cards

Other Related Articles to Read

• Groups seek credit card debt forgiveness
• Outrage Over Credit Cards with 222% APR
• Humor: US Solves Credit Crisis, Credit Cards
• True Cradle Robbers – Stealing Credit From The Cradle
• Root Canals and Appendectomy Were Expensive and Landed Me in Bankruptcy. – Ray
• Credit Card or Debit Card: The Great Debate
• Should I Take Money Out of My IRA to Pay My Credit Cards? – David
• Sears, Home Depot May Lose 8% of Holiday Sales on Credit Limits
• Expect Tidal Wave Of Limit Reductions and Credit Card Closures to Hit Before Christmas
• Here’s some real financial advice you can really use: keep spending

Read the full article at GetOutOfDebt.org, click here: Next big worry: Credit cards