Credit card debt and what should i do with it?

Question

Last year I only make $7,000 and in the past two years accumulated about $20,000 in credit card debt. I last month i stopped making payments to all my creditors because i just can't afford it. What should i do about it because theres no way i can do it anymore. Im thinking bankruptcy but which one even with credit consolidation i would have to pay half and all at once. I don't know wat to do some one please help!

Answer 1

You have an income problem.  You must find either a higher paying job or find another job in addition to this one.  I'm sorry, but bankruptcy may help you today, but i don't see you breaking the cycle until you get your income up.  Good luck

Answer 2

You made a big mistake a while back. You should understand what you have in money and what you can spend. Try to pay cash as much as possible and get a debit card for the future but for now you have a couple of options. A local paper in my Province pays nearly $1,500 a month the delivery papers and it does not take up your day you start from 4AM and work until 6AM.

If you work weekdays consider getting a job on weekends even if it is hard work. If you have an expensive car sell it privately and get a less expensive car (this is temporary you can get a newer car once your debt is payed off). Check out eBay, sell the stuff you don't need on there and you can easily work up a few thousand dollars/. If you don't want to go through the hassle of shipping then check out http://www.craigslist.com .. there you can arrange local pickup.

Try to work overtime in your current job of see if you can get a bonus. Also I am sure your parents will lend you a hand in giving you some money. Start by paying 25% of what you make to pay off the debt then slowly you will have it get smaller and smaller.

I think after this you will have learned a lesson and you will need future plans. Get a financial planner to help you plan your money. Put 10% of your income into retirement you will need it and if you start young in 40 years you will be happy.

You can get a limit on your credit cards and have a debit card instead so you never go over your limit. Best of luck

Answer 3

Do you have relatives that can help you?  
Call your creditors and ask  them to work with you on a payment amount that you can afford.  Then get another job to help out.

Answer 4

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