I need help!!! I have one bad credit card (which has gone into collection), my car was repossessed, and my student loans are through the roof. What's a single mom like me to do? I have considered filing for bankruptcy, but the thought of having no credit for emergencies or to take care of my kids has gotten me more scared than before. I'm also considering getting married and can't imagine my fiancé getting anywhere near my finances. Can anyone offer some help or advice?
Kinney: Get credit counseling. There's a national non-profit credit counseling group where you can talk confidentially to an advisor who will help you get your finances straightened out and help you work with your creditors to arrange payment schedules that you can handle -- while making sure that you can pay for day-to-day expenses.
Stop depending on credit. Easier said than done, but again, see above.
Finally, if you're considering getting married, it would be wise to be upfront with your fiance about your financial situation, otherwise it could potentially cause strife after the wedding.
Nesron: First don't panic. If your car is repossesed, forget about it. The car is no longer a worry. If you have one card in collections, find out how far it has gone. If you are still dealing with the issuer rather than the collection agency, you have a little time to stabilize yourself. If you can afford $10 a month, send it. Send even a $1 a month. That keeps your account status better than if you stopped paying altogether. You will still receive phone calls, but there will be nothing they can do to you.
Credit cards are unsecured debt; this means they card company can not do anything but get a judgement against you. If they get a judgement, they are in the same position. There is nothing they can really do to force you to pay. The one thing they can do is try to get a garnishment against your wages. If you pay that $10 a month, that option is closed to the company.
As far as your worries about not having credit for emergencies. I am sorry to tell you at this time you will not have any credit no matter what you do. The only option I see for you is to start saving up a bit if you can. They only credit that will be available to you is the secured credit cards. They require a deposit equal to your credit line. That might work if you can afford to save up a deposit.
Just try not to stress out to much. There is life after bad debt. If your fiance can't deal with your credit, just make sure your credit stays seperate. Don't joint apply for anything. He does all the credit applications, and he never mentions you on them. If you don't want all the hassles a card company will give you, get a PO box and change your address to it. Change your number on your phone. You can then have a quiet life rather than fear of the phone calls.
jlvac: Have you tried contacting one of the government-sponsored agencies such as "BUCCS"? They can help you manage your debts by consolidating them and contacting your debtors and arranging a payment scedule that you can live with.
Kettle: Go to the nearest book store and buy a book called "How to Get Out of Debt, Stay Out of Debt, and Live Prosperously" by Jerrold Mundle. This is an excellent book -- I have used it, and as of April, 1997 I will be debt-free. It has been a long haul, but it works. We were several thousand in debt and no jobs.
