Card Credit Debt Terminate

I was recently terminated from my job in July and am having difficulty finding a new one, but in the meantime I have about $25K in credit card debt and not able to make payments. A credit counselor suggested bankruptcy, but I know the consequences of such action. However, without a job I have no money and I do plan to get one as soon as possible. So please don't tell me to get a job, I already know that and doing everything I can by applying for many different positions. But given my current situation, is bankruptcy my only choice and is it better to do when you are unemployed or have a job? I have also already tried to contact the creditors to negotiate the terms, but no luck since my credit is in such bad shape. Any suggestions?
I forgot to add something...will filing bankruptcy hurt my chances of getting hired for another job?

Go to this site: http://www.nfcc.org/ They are Consumer Credit Counseling Service (CCCS), a legit non-profit company. They offer free credit counseling and have a debt management program available, if you qualify, for no fee.

They can look at all you debts and advise you how to proceed.

If you have $25K in credit card debt, you didn't run that up in just the past couple months. You have a real problem living beyond your means. If you had managed your finances better, losing your job would not have put you on the verge of bankruptcy in two short months.

2007-09-14 12:21:44 by Heidi

pc-onlinebackup.com Credit cards have caused millions lose their peace of mind and run from responsibility. If you are smart and sensible enough ...

I'm not in massive debt, but I lost my job and I don't plan on using credit MUCH so i just want it all paid so I don't have to worry about the balances, but I don't want to lose my credit cards.

Be wary of one thing.. some credit card issuers will actually decrease your credit limit or close the account for "no activity". Although this usually only happens after long periods of inactivity with no balance, I have seen cases of card holders having their credit limits decreased if they remain unused for over 6 months with a $0 balance. If the card issuer closes the account it's not "derogatory" on your credit report, meaning you will show a good, clean history on the account which won't in itself drive down your credit scores, but your scores will still go down because of having one less open trade line. A good rule of thumb is to make sure you make at least one minor purchase every 6 months and then pay the bill in full once you get your cards down to $0 balance.

Many people think that their credit card accounts can *never* be cancelled, unless they request it, as long as they have paid their bills on time and used the card resposibly. This is not true, however. A card issuing bank has the right to cancel, choose not to renew, or decrease your credit limit based on any number of seemingly arbitrary reasons, of which "lack of activity", "too many other accounts", or "income doesn't justify credit line" are just a few. They're in business to make money, and people holding no-fee credit cards for years without making purchases on them don't provide any income for the issuing bank.

2007-08-08 06:32:07 by Alex C

my husband was let go from his job and we are raising our grandchildren who are 7 and 10 and I am caring for my elderly parents its all we can do to just keep a roof over our heads and food on the table

The obvious answer is to get that income back up.
In the short term, you may want to consider garage sales and trimming any excess out of the budget (if there's any left). Getting on a real budget will help.
Is there state aid for the grandkids & elder care? If not, you may want to look into some assistance there.
If you are that behind, your priorities should be food/utilities/housing FIRST, and worry about the unsecured debts like CCs last.
Keep pushing and keep job hunting.

2009-02-08 12:18:05 by kathryn a

what if a credit card holder dies?what will happen to his/her debts on the credit card?will the credit card issuer going to pursue their claims on the balances?or will the debts be terminated already f such incident happens?

The answer depends on a few factors.

If the debtor is married, they do not live in a community property state, everything is in both of their names (home, car, etc) then the debt dies with the debtor.

If the debtor is married, they do not live in a community property state, the debtor has property in his/her name only, then they may be able to seize that property. The spouse would not be liable.

If the debtor is married and they live in a community property state, the spouse may be liable for the debt.

If the debtor is not married, does not have a will then the estate would be divided up between the creditor, the state and any immediate family.

2007-03-18 21:08:55 by ian g

I was past due for around 2 or almost 3 month on most of them and now I have $0 balances on all of them. Along with the full payment I sent a letter to all my creditors that I wanted to terminate the line of credit. Now I'm left with no credit, so I was thinking of within 3 to 6 months get a credit card from my bank and using it to buy small things and paying it off immediately. Is that a wise decision to start rebuilding my credit or how long should I wait to open a new line of credit?
I actually also had a large personal loan that was paid off at that same time and I have only one credit account open, but it is one i have not used in a long time. Should I start using it buying small items to rebuild my credit?

And what on earth possessed you to cancel the paid off accounts?
As you already realized now you have Zero credit because all the accounts that would have been again in good standing with Zero balances are canceled.

The idea is to have at least 2 credit cards with high credit limits and low to zero balances at the end of the billing cycle because you paid them in full every month. You were almost there.... only mistake:

You canceled them. Now you lost the line of credit these cards gave you and are back to the starting point. No Credit Cards and No line of Credit.

Apply for one card in six months. Only make small charges that you can easily pay in full when the bill comes. Wait another 6 months and then apply for your second card.

Stop right there.... You really do not need more than two cards.
Use them for small amounts every month, pay them off in full or at least never go over 30% of their available credit line in a billing cycle and your credit should recover eventually.

2009-03-06 21:12:33 by Big Bird