Collections Hovering Over me

[Anonymous]

Hello All,

Well versed and need some opinions here.

I have been unemployed for about 6 months. NOW, the obvious is I need some type of employment so I don't want to go off on a tangent about that but I need some advice on how to handle things here.

I currently am liable for 16 total credit accounts. In that mix is some loans, car payment, and revolving credit. EVERYTHING is totally maxed out. I am way over my head now because of unemployment and was way over my head when I was employed. (This doesn't need to be stated).

Now the GOOD. I have been able to maintain all of these accounts as far as making minimum payments although I recently had a 30 day late reported. Other than that, my file is free from negatives. Recently however, I have had 2 accounts go into precollections. The amount of these 2 accounts is way beyond my means at this point to really even arrange anything. The doors are closing quickly and MANY may say, "HEY, YOU SHOULDN"T BE WORRYING ABOUT YOUR CREDIT FILE RIGHT NOW!", unfortunately lets just say I have "been there, done that". I don't want to go back. It isn't that easy. So, needless to say, I am going to have to let these accounts go into collections which means 2 brand new negative accounts and potentially 2 more collection agency accounts which means I will have 4 new negative accounts and I am trying to avoid this if at all possible. 

I have been maintaining everything else after my necessary expenses. I cannot add this into the mix. I have tried applying for multiple consolidation loans, I have no friends or family to borrow from, I have no available credit to apply the balance to, and have no cash reserves. It just seems as though I am totally F'ed here and there are really no other words for it. Not sure what to do and trying to guage what the fallout is going to be from this if I HAVE to let these go to collections.

I am not intending on purchasing a house anythime soon. I do not plan on applying for credit anytime soon. The only thing credit wise I would be needing is in about a year and a half when my auto lease is up and I am going to need another car.

Any suggestions?

[Anonymous]

Well, it's obvious you need money, not more credit. So, I get all the bad things about to happen, robbing Peter to pay Paul is likely what has you totally maxed. So, my question is, what's up with the job front? You have been without for 6 months? Are you employable now, or is something keeping you sidelined? 

It sounds like you have done all you can to shift things around, but that strategy only works if you get re employed by this time, the maxed out time. Without that, it leaves you in far worse shape. 

And I think you are correct, we should always worry about our credit file and attempt to minimize damage. You are getting pretty hung out though with creditors. Perhaps do the debt thing where they close your cards to new charges and reduce the interest? My brother in law did that and a short time later everything was back to normal, no lasting effects like a bk.

If you can work, I am seeing lots of help wanted signs. It sucks to be where you are, but most of us have had to face this, so I know there's lots of empathy here for you. Make a plan, get back mentally in control and stay in control. Do the best you can. It's all any of us can do. 

Finally, never again solve a money issue with credit unless it's really a sure thing. Otherwise nothing good comes from it.

So, to sum up, ANYTHING that increases your income, food stamps, side gigs, New employment, anything will help. Don't dodge the creditor phone calls, they hate that. Cut everywhere you can. Be emphatic about not defaulting, and stand by your word. In the end, this will be a growth moment and just a memory. My dad would say, "They can't kill you and they can't eat you." Sorry you are in this spot, and I hope it passes quickly.