In the last 2 years I underwent divorce and health issues. I am disabled and live on Social Security Disability. I have no other income, nothing of value. I finally was able to get subsidized housing. I took out a “loan” for furniture $1,600. Turned out to be a high interest rate credit card with GE Money.
I was told if I paid it off in 12 months, I would have 0 interest. I had it over half paid for when again, health issues interceded… Now with 34% Interest the balance is almost $2,000. I also took out a $300 credit card from JC Penny which is now also GEjcp… I had to purchase clothing and household items… I had that paid down to half as well… and needless to say… the interest rates in the 34% range, that too, has doubled.
GE refuses to work with me. I have asked if they had a hardship payment plan. They told me they would stop charging me late fee’s of $35.00 per month and credit my accounts for these fee’s yet have not done so.
They have ruined my credit.
I have tried to get a loan from my credit union, area banks, etc so the interest would be lower, there would be no further fee’s, and I would have a lower payment that would be made on time as it would be taken directly from my account each month. No one will issue me a loan because of my credit rating in the 600’s…the late fee’s… the delingquintcy GE has put on my credit report.
I do not know what to do since no one is willing to work with me so I can pay off my debt… and I do want to pay it off… I also want my credit repaired. My income will not be changing, my disabilities will only continue to progress… I need a payment plan that I can financially afford. Your wisdom would be appreciated. Thank You.
It seems your life ran into your hard promise to repay. Stuff happens.
I know you expressed a desire to repay but if you anticipate further disability problems you need to start saving all the money you can and stop paying. Otherwise you will put yourself in a worse future financial position.
I really don’t see this as a problem with GE Money. When someone takes out credit they enter into an agreement to make certain minimum payments. That agreement does not make any allowances for unforeseen life events.
GE Money is not required to make any offers besides what is in the agreement. So anything they do offer is a bonus over what you are entitled to.
It seems you have about $2,300 of unsecured debt. Not sure if you might have any more or not. Ideally the best solution is bankruptcy since it would terminate the debt in about 90 days, stop any lawsuits over the debt and stop all future collection attempts. It would give you piece of mind and let you get back to saving as soon as possible.
Bankruptcy Articles and Posts You Must Read
To get ready to read the information below with the right frame of mind, please first read How Do I Get Out of Debt Quickly? Change Your Mindset.
- Those That File Bankruptcy Do Better Than Those That Don’t
- How to Know if You Should File Bankruptcy
- So You Are Going to File Bankruptcy. That’s Great News. Congratulations.
- Easily Rebuild Your Credit After Bankruptcy
- The Truth About Bankruptcy Success Rates
- How to Get Out of Debt Calculator
- How Avoiding Bankruptcy Can Backfire
- How Long After Bankruptcy Can I Buy a House?
- Is Bankruptcy Sinful and Bad or Right and Moral? An Examination
- What Does the Bible Say About Bankruptcy? Is Bankruptcy Scriptural?
- How to Get Out of Debt. The Honest and Unvarnished Truth
- The Emotional Seven Stages of Debt
- Getting a Job After Bankruptcy
- Chapter 7 Bankruptcy – What is the Truth?
- Low Cost / Pro Bono Bankruptcy Resource Locator
- Bankruptcy Should Be the Last Resort Many Say. But That’s Just Not True
- The Ethical Considerations of Bankruptcy
- Is Bankruptcy Right For Me?
- 14 Reasons You Should Not Avoid Bankruptcy
- How to Really Discharge Your Student Loans in Bankruptcy. Many Can. But Never Try.
- Life After Bankruptcy: How to Quickly Have Great Credit and Dumb Mistakes to Avoid
- How to Find a Great Bankruptcy Attorney
- You Have Not Failed if You File Bankruptcy
- The Saddest Avoidable Mistake People Make When Getting Out of Debt
Life After Bankruptcy
- How Long After Bankruptcy Can I Buy a House?
- How to Rent a Lovely Home or Apartment After Bankruptcy
- Life After Bankruptcy – The Truth
- How to Easily Rebuild Your Credit and Have Good Credit Again After Bankruptcy
Filing Bankruptcy Yourself
However, another option would be to do nothing and let the collection calls and efforts continue. Even if the creditor sues you and you have no real assets they will not be able to collect. However, any judgment they receive will sit and earn additional interest and grow.
This approach is a much tougher one mentally. It’s so easy for people to fail prey to the pressure of the collector and make a promise to pay that is just unwise and unaffordable.
At this point we need to focus on the future and not trying to repair the past. You can already see your future is going to be tougher with your advancing disability.
If you come into some money later then you could settle those debts at that time.
Please post your responses and follow-up messages to me on this in the comments section below.