@carlismycat wrote:
I know this is a really old thread. But I found it from doing a search. I am in a similar situation feeling backed into s corner. I have been paying everything (meaning CC's) on time for almost 7 years. I have worked so hard waiting for my last late's to fall off my credit reports and finally have a clean slate again. Only problem is am maxed out on cc's and been struggling to keep paying the minimums for about a year now. I made 400. Less on my last paycheck (this past Friday) and don't have the money to pay everything on time before next payday.
I refuse to stop paying on my new car (first car loan ever at 38 years old) , and my 10,000. Installment/personal Loan through the credit union. And I don't want to ruin my financial relationship with American Express. I had never been late with them . I was thinking the only way to avoid bankruptcy is to save up money between two-three pay checks (but still pay on my loan and car payment each month) and pay off each credit card starting with the smallest balance in one lump sum. To get them out of the way. Only way to do that is be late /not pay everyone else I owe . Basically like snowballing but I don't have enough money to pay everyone at the same time if I keep getting low payday checks. I'm working Saturdays and taking jobs on the side with my other stuff I can do (photography, and making reborn dolls) outside of work.
If this method works, I will end up with a lot of late's on my credit report but have a better chance of stuff paid off sooner. Is this still better than doing bankruptcy ?
Sure it's better in the long run but a "lot" of lates will still tank your credit scores in a hurry and you will pay the price for years.
So your current situation is you are maxxed out on debt and don't make enough money to pay everything?
