“Dear Steve,
I am almost 60 yrs. old. I used my retirement money to fund a network marketing scam…I learned a big lesson there.
I have been living on credit cards for the past 3 yrs. I have 7 cards maxed. I worked for someone but found that I couldn’t earn enough to make payments so i opened a small business (again using credit cards) hoping it would eventually generate enough money to support me. Now almost a year into my business, I am no longer making any money and soon won’t be able to pay any of my rents for business or for apartment. This is the last month that I will be able to make payments on credit cards. I’ve been late on payments and have received late charges and one card has doubled my payment when the interest rate jumped to 22%. I am most likely going to lose my business and living accommodations. I can leave the state and move in with my elderly parents so i will not be on the street, but I feel very helpless and sad that I put myself in this position. I have begun to look at debt consolidation programs, but not sure that they can really help at this point. Any suggestions.
Are there any debt consolidation programs or loans that will help me with my $70,000 credit card debt?
Jonnie”
Dear Jonnie,
A debt consolidation or credit counseling program would be a mistake for you right now. The problem is that without any reasonable expectation of a reliable income coming in any long term repayment plan will most likely fail miserably.
The more logical approach right now would be to let everything fail, wrap all the debt up into a tidy bankruptcy and start over. You can click here to find a local bankruptcy attorney you like.
Bankruptcy will prevent you from getting collection calls, it will block any lawsuits from creditors and it will allow you to regroup. The regrouping part is a big benefit to you right now. By your own admission you’ve learned some tough lessons and managed to wipe your finances out in a failed business attempt. At 60 the last thing you should do is struggle for the next 5-7 years to clean up the past and instead use the same time to start to earn and save for your eventual retirement.
Moving back in with your parents at 60, sucks. But rejoice in the fact it could always be worse so be thankful you have found a solution here and there is hope. There is no need to beat yourself up over what happened yesterday. Just take action, meet with the bankruptcy attorney, and focus on making tomorrow better.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Do you have a question you'd like to ask me for free? Go ahead and click here.
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