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Vinas1970
Posts: 5
Registered: ‎07-02-2012
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HELP - Lost my job, and can't pay my credit cards

I just recently lost my job, and I have around $12,000 in credit card debt. I am unable to pay my monthly credit card payments, because I need my unemployment checks for my living expenses. What can I do? I'm worried that I'm going to screw up my credit scores if I stop makign payments. Any advise would be much appreciated.

 

Thanks.

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j_casteel
Posts: 1,915
Registered: ‎06-21-2012
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Re: HELP - Lost my job, and can't pay my credit cards

Have you tried explaining this to the CCC's?

| Walmart $5k | Amazon $5k | NFCU $20k | NLOC $15k | Lowes $17k | BoA $15k | Freedom $3k | IT $4.5k | CSP $5k | Marriott $5k | AMEX TE $9k | Alaska $5k |
Starting Scores: EQ:571 EX:??? TU:597
Current Scores: EQ:694 EX:714 TU:711
Goal Scores: 700
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Vinas1970
Posts: 5
Registered: ‎07-02-2012
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Re: HELP - Lost my job, and can't pay my credit cards

No I haven't, would this be my best bet right now?

Valued Contributor
j_casteel
Posts: 1,915
Registered: ‎06-21-2012
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Re: HELP - Lost my job, and can't pay my credit cards

I'd say so....this is a situation between you and them. It would be best to discuss everything with them now, and try to work on some for of payment plan. I know from experience that its usually much better to deal with creditors than to just ignore them.

 

Good Luck,

 

John

| Walmart $5k | Amazon $5k | NFCU $20k | NLOC $15k | Lowes $17k | BoA $15k | Freedom $3k | IT $4.5k | CSP $5k | Marriott $5k | AMEX TE $9k | Alaska $5k |
Starting Scores: EQ:571 EX:??? TU:597
Current Scores: EQ:694 EX:714 TU:711
Goal Scores: 700
across the board
Frequent Contributor
cassembler
Posts: 470
Registered: ‎02-07-2011
0

Re: HELP - Lost my job, and can't pay my credit cards

Very sorry to hear that, and hopefully it's just temporary...

 

That said, missing even a single minimum payment will make it that much harder to recover, as you said, because it can cause both your scores to drop and you creditors to start chasing down your balances (i.e. every time you pay one down, your limit drops accordingly). If your credit is currently in good shape, you might consider trying a balance transfer method, but that's really just playing hot potato.

 

But above all, I'd consider making serious lfestyle changes, as the $12k in debt didn't get there by itself without any help. Sorry if that comes off as insensitive, but this is exactly the time to wake up and look at what you need to change. We're happy to help if we can :smileyhappy:

 

Also, posting specific details of what accounts you have, what the balances are, minimum payments, credit limit, etc may get you some more detailed advice.

"Credit is purely a cash flow tool. Thinking of credit as extra money you didn't have before makes it an EXPENSIVE cash flow tool."
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ashkev89
Posts: 228
Registered: ‎07-21-2008
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Re: HELP - Lost my job, and can't pay my credit cards

Yes it would be.

Hopefully, if you signed up for their credit secure type products, they can protect you when incidents like this happen. It usually cost like $0.89/$100 and it can be a life saver when the unpredictable happens.

Call the CC companies, don't wait until your credit has to suffer.

Starting Score: 475 09/2008
Current Score: 07/2012 EX:696 (BOFA & Amex Fico) EQ:707 (CU Pull) TU:708 (Walmart FIco)
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aussiesareforever
Posts: 741
Registered: ‎10-04-2010
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Re: HELP - Lost my job, and can't pay my credit cards

Calling and arranging something with your credit card company will be your best bet. Your worry is very much founded on truth. Your credit scores will tank with late payments. Those payments will typically also stay on your credit report for about seven years except you try to get the CC company to goodwill delete them. That usually takes a lot of begging and some companies still say no.

 

How many credit card accounts is that debt spread over? What specific companies do you owe? It is best to start calling and set something up with them. They would much rather get $20 a month from you than have to charge off your account.

 

Good luck and I pray you find some employment options soon.

 

 

BK in 2008, after making very stupid financial decisions.

Barclay's Apple Financing Card ($6400) --- Capital One Quicksilver ($10,000)---GEMB CareCredit ($5700) --- AUFCU ($10000)--- Walmart ($5000)

FICO Scores: TU 735 EQ 709 EX 740 (Feb 2013, all pulled by lender)

Frequent Contributor
cassembler
Posts: 470
Registered: ‎02-07-2011
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Re: HELP - Lost my job, and can't pay my credit cards


ashkev89 wrote:

Call the CC companies, don't wait until your credit has to suffer.

+1 to this; at least consider it if it looks like there's no way to at least make minimums.

"Credit is purely a cash flow tool. Thinking of credit as extra money you didn't have before makes it an EXPENSIVE cash flow tool."
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Vinas1970
Posts: 5
Registered: ‎07-02-2012
0

Re: HELP - Lost my job, and can't pay my credit cards

Thanks for the advice folks, i have 6 cards, Bank Of America ($3,700), Discover ($1,200), First Hawaiian Bank ($4,100), Orchard Bank($2,100), HSBC ($1,000), Macy's ($500).I have been paying more than the minimum payment every month, and my credit score is around 725. I will try to call them and see what they can do.

Valued Contributor
android01
Posts: 1,226
Registered: ‎09-22-2009
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Re: HELP - Lost my job, and can't pay my credit cards


Vinas1970 wrote:

Thanks for the advice folks, i have 6 cards, Bank Of America ($3,700), Discover ($1,200), First Hawaiian Bank ($4,100), Orchard Bank($2,100), HSBC ($1,000), Macy's ($500).I have been paying more than the minimum payment every month, and my credit score is around 725. I will try to call them and see what they can do.


Are the figures you mentioned the credit limits on those cards, or the balance owed?  if those are the limits, please let us know what the balances are as well. 

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