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I was out of work for 3 months do to an accident. Before that happened, I had a 760 credit score with only a chapter 7 bankruptcy on it that drops off next month.
Now I am falling behind and already accumulated three 30 day latest on my credit cards which I maxed out. With the high interest, I am having problems making the payments every month. I am not makingenough to be able to pay he minimum payments, and most of what I am paying is going to interest.
I worked hard over the past 10 years on my credit up, always kept my utilization low, and cleared all of the judgements off of my credit via letters and payoffs just to be headed back were I was when I filed bankruptcy 10 years ago.
What advice can anyone give me? I am falling further and further behind because of late fees and interest rates. Because of respect 30 day latest and high utilization, my score dropped from 740-760 to the mid 500s.
Definitely contact your creditors and work with them. They might be willing to put you in a reduced/0% interest rate temporarily to help, but this wouldn't last forever. Also, they may close your account in exchange for the relief.
Do you expect your income to go up anytime soon? Perhaps getting a second job temporarily, cutting costs wherever possible, etc.?
Well, you have to make at least minimum payment. You already know what happens if you don't.
Typically you cannot negotiate payment plans on open cards (though, there are a few exceptions where card is restricted until payoff). Closing an account to preserve terms won't help you much if you cannot make required payments.
Hopefully someone else will have an idea for you, I don't because you have very recent lateswirhhugh utilization. I really don't think you'll have any luck with getting additional credit extended to (such as PL or cards with 0% intro where you could do a BT).
Right now, your best option is probably MF cliche "Rice, beans, Uber, make extra money, throw everything at the debt"
If you allow a single account to become charged off, you're looking at additional 7 years in credit purgatory.
Theres no quick fix except income. For 45 mins x2 a week. Most plasma donation centers pay up to $1000 as a new donor. Some more. Ride sharing. Lots of PT jobs paying $15 and up. More income is all you can do really. Once caught up and back under control. You have to pay yourself 10% of your pay day in savings. Get it up to 6 months of survival in case of a life event and your bills would be paid and cards would stay cleared. Good Luck!
@DonFico wrote:I was out of work for 3 months do to an accident. Before that happened, I had a 760 credit score with only a chapter 7 bankruptcy on it that drops off next month.
Now I am falling behind and already accumulated three 30 day latest on my credit cards which I maxed out. With the high interest, I am having problems making the payments every month. I am not makingenough to be able to pay he minimum payments, and most of what I am paying is going to interest.
I worked hard over the past 10 years on my credit up, always kept my utilization low, and cleared all of the judgements off of my credit via letters and payoffs just to be headed back were I was when I filed bankruptcy 10 years ago.
What advice can anyone give me? I am falling further and further behind because of late fees and interest rates. Because of respect 30 day latest and high utilization, my score dropped from 740-760 to the mid 500s.
I had sort of the same thing happen to me about 20 years ago when i was out of work 13 months , although i didnt miss a payment. I had 2 citi cards, i took a cash advance on each, shortly after citi balance chased me and jacked my interest thru the roof.
I had a number of other cards and now citi made it impossible for me to meet my obligations.
I called citi and explained now that they jacked my interest i was in danger of default. they worked with me by converting the 2 cards into 5 year low interest loans
Not sure if you are back to work or not, but first step is obviously a call to the creditors. If you are not back to work you may, unfortunately, be force to let it slide to 60 or 90 days late before they will work with you.
Sell everything that isn't nailed down. You have got to come up with extra cash asap. I know thats easy for me to say but that really the only option. Uber, Lyft, hell some fast food places are now paying daily. The plasma donation is a great idea for quick cash and they tend to give a healthy bonus for new donors.
The unfortunate part of all this is you went through a BK but didn't learn anything it doesn't appear. Cards maxed out, little to no savings presumably. Yes, I know you were out of work so the cards may have been used during this time but I'm guessing those cards were carrying healthy balances prior to that.
@DonFico wrote:I was out of work for 3 months do to an accident. Before that happened, I had a 760 credit score with only a chapter 7 bankruptcy on it that drops off next month.
Now I am falling behind and already accumulated three 30 day latest on my credit cards which I maxed out. With the high interest, I am having problems making the payments every month. I am not makingenough to be able to pay he minimum payments, and most of what I am paying is going to interest.
I worked hard over the past 10 years on my credit up, always kept my utilization low, and cleared all of the judgements off of my credit via letters and payoffs just to be headed back were I was when I filed bankruptcy 10 years ago.
What advice can anyone give me? I am falling further and further behind because of late fees and interest rates. Because of respect 30 day latest and high utilization, my score dropped from 740-760 to the mid 500s.
Declare bankruptcy again, I guess.
OP, what's your total minimum payments this month, including arrears? What is the total going forward (assume no arrears). Unless you're going BK again, do NOT let an account slide into Charge-off Land. The lates, while injurious for 2+ years, will steadily become less bad. The CO is like the mark of Cain, almost as bad as a BK.
So with more specifics, maybe we can suggest a plan.