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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Bankrupt or try to 'gut it out'? Date:  11/15/2012  8:55 AM
Author:  aoeuid Number:  306437 of 312187

V wrote:

Stay away from any company that claims it can fix your debt problems by negotiating settlements. They take your payments, trash your credit rating, balances escalate, income taxes are due on the escalated balance that are negotiated down, and then they claim success based on the inflated ending balances.

^^^OK. Thank you very much. DMC crossed off my list for GOOD! Simpler is better for me.

Credit counseling might help you understand your options. With the interest rates that you have, they can't help with interest rates.

^^^^Good point. I imagine they would highly encourage us to cut some of the 'non-essential' items that we spend money on every month (pets, dance, gymnastics, therapy, internet, etc). But then again, maybe they would find those things to be good, healthy stress relievers with access to the internet, Fore I can do my 300 report cards from the comfort of my own home. And, I do those reports every nine weeks.

You view your income as low, but how does it relate to average income in your area? Would you qualify to completely discharge the debt or would you be required to repay part of it in bankruptcy?

****^^Good point. We are not an affluent town. I would guess that our income is average for this town. Re-paying part of it would work for me.

****I think part of the problem is my history and my personality. I was born with a golden spoon in my mouth and it stayed in there until about the 5th year of my marriage (when our third and final child was born - and NO I am not blaming our daughters for our debt - I am grateful for all of the and I love all of them). I will be 49 in May. I NEVER had a debt problem like this before and I am accustomed to having at least 5K in savings and NO credit card debt. So, this living from month to month is WAY outside of my comfort zone. Well, too bad for me I guess. Paying it off or down will teach me invaluable lessons. I'm gently calling it an 'idiot' tax. If and when we get out, I very seriously doubt it will ever happen again.

But if while fighting the good fight, we get SUNK halfway through the game, there went 15k that could have went towards are savings and/or mortgages.

If you make it half way, your odds of success are good. Minimum payments decrease as the balances decrease.

^^^^^Thank you. That is encouraging.

If you are unable to keep up with payments, then deal with it then.


Bankruptcy is not a now or never.

****Could you clarify what you mean by the above please?

Since you have stopped using the cards, the balances will start to decrease.

******Thank you. That is encouraging. I'll make a bar graph for motivational reason. I'm a visual learner.

You are a teacher. Since you are in a small town, you can't tutor your own students, but would it be possible for you to do online tutoring?

^^^^^^^^^^My subject is physical education. Do you have any ideas on how to get online tutoring up and running? I can teach kids how to read. I don't do math (not this new math anyway). I have taught tennis lessons for money before but that was limited in the number of clients I had.

Thanks a bunch. Off to work I go. I'm late!
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