I have been unemployed since Jan 5th 2009. My UEI covers my hard bills, rent , car loan, car ins, untilities, a little food. I have used my savings to pay my credit bills thinking I would find a job. I have run out of my savings and have made poor mistakes that way I beleive. I have now gotten rid of luxury items such as cable and live of a very small food budget of basically rice and bean, no joke… and can afford to pay three of my card minimums that way
So my question is… out of the 6 cards I have I can afford to pay the minimum on three but the others I want to close and set up a payment shedule to pay the balance. I believe if the minimum was cut in half I could afford it but if not then I will suffer late fees.
1. Will the card companies simply send it to collections and I will hve to set up payment that way or will they sell the debt and I pay that way.
2. If Im paying a collector timley and have not defaulted but set it up does that show on my credit negatively
Unemployment is not designed to help you pay your bills. It is designed to help you get by while you look for another job. Unemployment benefits will expire at some point as well.
Paying your credit card bills from your savings would be a mistake. Without any new job and replacement income before you know it the savings will be drained and the debt will still exist.
If you have credit cards that have already been sent to collections, your credit is already shot. At this point, without any job on the horizon you are better off talking to a bankruptcy attorney and to stop paying the collection company or creditors. Click here to find a local bankruptcy attorney to talk to for free.
I know you want to do the right thing but the path you are on isn’t it.