First of all, yes I am screwed. As of today I am current and have paid all my bills on time my whole life. Yes, we have been living paycheck to paycheck just like everyone else out there, trying to get through these few years. All this CC dept is left over for time in collage. Followed by many years of low pay “paying your dues” Finally about 3 years ago “paying all those dues” stated paying off, and we started to cut down what we owed. But, since the down turn, things have gone the other way.
Right now I have may CC maxed out for the most part. The home that we live in is well below the average US price, and I owe 5000 on one of our cars.
But today I found out that I will have take another paycut and this one will put me 300 bucks shy of just paying my fixed bills (CC, home, car, power, water, ect) with 100% chance of no overtime, or any other way to come up with cash. I would take on second job but this one would hardly let that happen, not at home enough. Changing employers would mean 60% loss in income.
What do I do, stop paying the CC bills so that my family can eat. Right now they CC’s rate is not to bad all within the 9-12% range. But if Stop paying them I know that that will go up. All I see coming is a trip to the court house and having to file.
Any suggestion would really help
Do you stop paying your unsecured debt so you can eat? Yes.
You are facing a situation which is emotionally difficult but rather easy to technically address.
Here are the facts as I see them from your question.
- You have had a reduction in income that is beyond your control.
- Your debt, for whatever reason, is more than you can handle on the current income.
- Bankruptcy is a legal and viable option that will address the debt situation and give you legal protections under the law.
- You simply can’t afford to pay the unsecured debt and make ends meet.
- Even if you did manage to make it just barely month-to-month, where is the spare cash to save in case of an emergency?
- Without bankruptcy you can’t save. Without saving you can’t protect yourself from emergency expenses that will come up that you can’t put on credit that’s maxed out and you can’t afford.
- Unless your income is going to increase, the inability to make payments will land you in collections, and based on what you’ve shared no amount of collection pressure is going to squeeze blood from a rock. You just don’t have it.
Does that about sum it up?
My suggestion is that before the situation gets worse, that you immediately click here to find a local bankruptcy attorney and go see them, PRONTO!
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.