topic Payoff Advice in General Credit Topics

Payoff Advice

Anonymous — Mon, 28 May 2018 16:16:08 GMT

Hello All,

Not sure of my plan of attack. Here is the long and short. My income has significantly decreased but my debt hasn't. I formulated a snowball, but it consumes all of my money.

The worst part is, things are being paid 15-25 days late now. So this means compounding late fees being added to every balance I have. So the snowball isnt working.

My next idea is to unfortunately let other things go and every 2 weeks pay my small balances off in one shot. This will start freeing up more cash(which I need). Any thoughts? Obviously this will start dinging me with 30-60 day lates on some of my accounts which I dont want but, I am like stuck with no other options.

I have applied for over 15 consolidation loans and cannot get approved.

Re: Payoff Advice

Anonymous — Mon, 28 May 2018 17:24:21 GMT

Suppose two things:

(1) That you have reduced your spending to as low as possible and gotten all extra revenue you can.

(2) That you could somehow get current with all your debts, e.g. from the help of a benefactor.

Question: Would you then be able to make all your subsequent payments, paying only the minimum payment + $1 on each debt?

If the answer is no, then you should declare bankruptcy. That's what it is there for.

If the answer is maybe but just barely, then you should declare bankruptcy. The reason is that at some point in the next six months, some new emergency expense will occur. A tire will blow out, the AC in the house will go out, whatever. It is certain that some emergency will occur. And when it does, you will be back to where you are now.

If the answer is yes, and with some money left over, then you should see what you can do to make #2 (above happen). Typically that involves a concerted effort with friends and family. Explain that this will be a one-time event and that they'll never be asked again -- and that all you are doing is trying to get level with your current payments (which should not itself take a lot of additional cash).

Those are my thoughts -- other folks will likely have better advice.

Re: Payoff Advice

SouthJamaica — Tue, 29 May 2018 03:23:18 GMT

@Anonymous wrote:
Hello All,

Not sure of my plan of attack. Here is the long and short. My income has significantly decreased but my debt hasn't. I formulated a snowball, but it consumes all of my money.

The worst part is, things are being paid 15-25 days late now. So this means compounding late fees being added to every balance I have. So the snowball isnt working.

My next idea is to unfortunately let other things go and every 2 weeks pay my small balances off in one shot. This will start freeing up more cash(which I need). Any thoughts? Obviously this will start dinging me with 30-60 day lates on some of my accounts which I dont want but, I am like stuck with no other options.

I have applied for over 15 consolidation loans and cannot get approved.

My advice would be to consult with a consumer bankruptcy lawyer, fast.