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Disabled With Credit Card & Payday Loans. What Can I Do? – Frank

I became disabled and had to go on retirement/disability, I was able to make up to 80% of what I was making. I took some part time jobs and my wife was working as a nurse. In 2007 I had an Abdominal Aortic Aneurism plus the disease in my back (Arachnoiditis) became worse and I could not work at all anymore. My wife was still working and taking on extra nursing jobs to make up for the loss of my part time jobs. In 2008 my wife was injured while on the job and also had to go on disability (SSA). We were keeping up with our bills and then all of sudden when they started raising credit card interest rates, we could not keep up with the payments. Then we made even a bigger mistake by taking out payday loans to make ends meet. Now we are stuck and can not pay any credit cards or loans.

What can they do to us if we can not make payments? Both of us are on federal subsidised disability and I read that they can not garnish our wages, is this true? The collection agencies have been calling and one (Capital One) has even taken us before a magistrate but they never showed up and we won the case, but the magistrate stated they can file another complaint at anytime. We do not know what to do, we tried Credit Card Counseling, and other debt consolidation companies and when they reviewed our income and monthly bills they told us there is no way we can make ends meet without any additional payments. What can we do? Most of the credit card agencies or banks recieved money from the government through bailouts that was suppose to help people, yet a lot or most of them did not use the money for that reason. Capital One received $3.56 billion and used that money for other issues.

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Frank




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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

2 Comments

  • This is for: Disabled With Credit Card & Payday Loans. What Can I Do? – Frank

    If you no longer want to be bothered with a credit card debt settlement or consolidation company, unfortuneatly you may have to consider the ins and outs of filing for bankruptcy. If not, the creditors you know will probably “write off” your debt. Meaning they take a loss but can get some or all of that money back through their insurance companies. Other situations may be that if you own your home they may put a lien on your property or properties. This means that when and if you sell your home the lien will be deducted from your selling cost. You can also consult with the American Bar Association in your area. Most cities have this association so you can consult with an attorney for a very small fee. Since you both are disabled the fee may be waived. This may be a good option if no more than to steer you in the right direction.

    Good Luck!

    ~~~DREAM~~~

  • This is for: Disabled With Credit Card & Payday Loans. What Can I Do? – Frank

    If you no longer want to be bothered with a credit card debt settlement or consolidation company, unfortuneatly you may have to consider the ins and outs of filing for bankruptcy. If not, the creditors you know will probably “write off” your debt. Meaning they take a loss but can get some or all of that money back through their insurance companies. Other situations may be that if you own your home they may put a lien on your property or properties. This means that when and if you sell your home the lien will be deducted from your selling cost. You can also consult with the American Bar Association in your area. Most cities have this association so you can consult with an attorney for a very small fee. Since you both are disabled the fee may be waived. This may be a good option if no more than to steer you in the right direction.

    Good Luck!

    ~~~DREAM~~~

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