Really Need Some Good Advice In A Hurry

[Iusedtolurk]

Here's the gist of my predicament.

Due to some serious unfortunate events (flooding and medical problems) I have slowly watched 70% of my accounts max out and they will be going overlimit due to interest this month.

AS it will take me a couple months to attack these debts to at least get them into a decline I actually considered lately just giving up and filing bankruptcy. Just checking things seem like I would be forced into a Chapter 13 with a high monthly payment severely impacting income and the other negative factors that come with bankruptcy. 

Perfect payment history for last 8 years. 

I imagine by this time next month creditors will become real nervous and possibly some AA. 

Everybody is struggling I know and can't get a loan due to Utilization so high. No cash advances available. I have plenty credit on store cards and had my kids check to see if anyone wanted a deal like picking out a computer or something on HSN and give me cash at a discount. 

For example..

Pick out a 2000 dollar computer or cellphone or something and pay me about 1200 for it. It would be worth the hit. I took out some bottom feeder loans with killer interest trying to pay some hospital bills and renovate from natural disaster. I could put some money with the 1200 and knock them out freeing up a good amount of change and slow the downward spiral but nobody I know has the money for it. Hsn I always keep at ZERO util. 

I have thought out the box but nothing is working.  

Any suggestions?

[Varsity_Lu]

Sorry to hear about your situation. First, do you have anything of value that you could sell? Tools? A car? Canoe? Guitar? Anything that you are not absolutely deeply emotionaly attached to that you could replace a few years down the line? 

Second, is there any expense you could cut? Subscriptions? Dining out? Stop buy beer? Anything at all? Buckling down and even just eating peanut butter and eggs might help you throw more cash at the debt. Do what needs to be done to pay this off. You've got to make cuts.

[NoHardLimits]

Have you tried calling your creditors to explain the situation?  They might be willing to work with you on a payment plan.

[Jnbmom]

I agree with others . No harm in calling them to see if you  can work something out .

It might help to post your cards, your balances , interest rates and how much you can put towards them .

Go over your budget cut anything you can. Sell things , give plasma or part time job on weekends .

[AndySoCal]

@Iusedtolurk @ Sorry to hear about the challenges you are facing. Have you thought of a debt consolidation loan? Alliant credit union is a source but not the only. It would lower the payments depending on the rates your paying on. At least it might help to give you a little breathing room so speak

[Realist]

If you feel your situation is salvageable, you might want to find a path towards paying down your debt.  If this isn't likely possible, it's time to utilize plan B.  Knowing where you are early, is the fastest way towards recovery.  By this I mean, if you realisitically can't pay off your debt, it makes no sense to toss every penny you have and earn, into paying off something that isn't possible to dig yourself out of.  Do not go broke because of it.  No one cares other than you, as every transaction is calculated as corporate risk.  

Enter, debt settlement or delete.  At the cost of your credit score for seven (7) years.  You have to weigh the pros and cons.

Should you decide that paying off is not possible, then withhold all payments that are no longer manageable, or amounts easily paid off, and accumulate value, for settlement one account after another.  Get that settled in full letter, and allow the credit score to do what it's going to do.  Depending on your debt, your FICO score will likely be about the same or higher, due to the weight of the amount settled.  The weight counterbalances itself pretty nicely.   You will have to pay taxes, on the amount settled.

We are entering in a timeframe similiar to 2008, where everyone was able to wipe away debt.  We aren't there yet, but we are quickly approaching a repeat of something much greater.   As I mention that numbers are nothing more than an accounting trick, capable of being dismissed as quickly as they are created, never, ever sacrafice your families well being for imaginary numbers on an accounting ledger.  You are the business owner for your own family.  You enter a deal, with other businesses.  Life happens.  Sometimes someone can't make good on a debt, and so you improvise.  Like it, don't like it, it matters not.  It's legal.  It's business.  Each and every business faces this.  All sides understand the risk involved.

I've heard the many stories of those (individuals) claiming that it's immoral, it's your obligation to pay, etc, but never anything from the corporate side.  No one enters a business decision with a malevolent intent not to pay.  It arises, usually due to something that pops up, or is outside of control.  Furthermore, while you hold a soul, a corporate entity does not.  Navigate however you wish, to slave yourself away to pay under the guise of morality, these corporations will simply write off your debt as a business expense, and you won't even be registered as a number or anything that matters towards their financial projection in that moment.  Simply numbers on a ledger.   Do what you must within all grounds legal and available - should life toss a few things sideways at you.  Or not.  You have that choice as well.   I don't have to condone nor condemn to know there are choices available to everyone.

[Iusedtolurk]

@Realist @AndySoCal @Jnbmom @NoHardLimits @Varsity_Lu  Thanks for all the responses. I incorporated parts of given suggestions in a final plan which I am implementing. 

I believe without any new Murphy's Law situations arising I may be able to weather the storm and see the skies clear up down the road. 

I brainstormed and thought out-the-box to buy me some time to steady my situation.

Pawned a few items to increase some revenue, requested Skip Payments on a couple of loans and Credit Cards that got approved, resorted to just paying minumums for awhile (can't worry about utilization skyrocketing and possible AA) and reduced a few expenses.

Someone gets skittish and AA occurs I'll deal with that. Better than a Late payment clinging to me for 7 years or a Bankruptcy sitting on my back for 7-10 years. I have managed to have a perfect payment record for 8 years and intend on keeping that going into the future.

Told the kids nothing in daddy's always-been-available pockets for them in the near future (they all grown with jobs).

It's not going to be easy but it's feasible. The light at the end of the tunnel is very dim but I believe it will become brighter each day with a few more moves and paradigm changes. After all Life-ing is just a part of living.

[Varsity_Lu]

@Iusedtolurk 

We are all pulling for you. Please continue to use this forum as a sounding board for advice and help. I have learned a ton in the few months I have been involved. Good luck!

[NoHardLimits]

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@Iusedtolurk wrote:

@Realist @AndySoCal @Jnbmom @NoHardLimits @Varsity_Lu  Thanks for all the responses. I incorporated parts of given suggestions in a final plan which I am implementing. 

I believe without any new Murphy's Law situations arising I may be able to weather the storm and see the skies clear up down the road. 

I brainstormed and thought out-the-box to buy me some time to steady my situation.

Pawned a few items to increase some revenue, requested Skip Payments on a couple of loans and Credit Cards that got approved, resorted to just paying minumums for awhile (can't worry about utilization skyrocketing and possible AA) and reduced a few expenses.

Someone gets skittish and AA occurs I'll deal with that. Better than a Late payment clinging to me for 7 years or a Bankruptcy sitting on my back for 7-10 years. I have managed to have a perfect payment record for 8 years and intend on keeping that going into the future.

Told the kids nothing in daddy's always-been-available pockets for them in the near future (they all grown with jobs).

It's not going to be easy but it's feasible. The light at the end of the tunnel is very dim but I believe it will become brighter each day with a few more moves and paradigm changes. After all Life-ing is just a part of living.

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You've taken some very wise first steps.  Even if it winds up being "two steps forward, one step back", you'll still be moving ahead from where you were last week.  Wishing you the very best.

[Jnbmom]

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@Varsity_Lu wrote:

@Iusedtolurk 

We are all pulling for you. Please continue to use this forum as a sounding board for advice and help. I have learned a ton in the few months I have been involved. Good luck!

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Yes we are most of us have been in a similar situation or we wouldn't have this forum . You have a plan and that's a great start . Good luck