Help paying/settling debt? (pay, debts, rate, credit)

[ck2007]

Hi everyone,

I have recently become in debt and am having a very hard time catching up.
Here's a little history,
I've had established credit for about 7 years now, never once making a late payment, never maxing a credit card, my highest credit score has been about a 750.
My fiancé has bad credit, so I have put a lot of things in my name (I wish I would have known better!)
A couple of months ago we had a lot of unexpected expenses come up, part of our land and house caught fire, a $1000 expense that we had no choice but to take care of right away, and several other things.
Those unexpected expenses really put us behind.
I'm finding it very hard to play catch up.
Now here is my problem,
I have 3 credit cards that are maxed out and past due (all 3 are going on 3 months)
We were unable to make the payments the first month and since we didn't all the APR rates went up, making me owe a lot more, which is one reason why I'm having a hard time getting them paid.
I also owe QVC money because I missed payments there also.

Now my payments have piled up over the past few months and I'm still trying to catch up another bill I got behind on.

I feel like I'm drowning!!
I don't know what to do, I do not have the money to pay the full balances owed, no one will give me a debt consolidation loan.
This is my first time ever being behind on something, I've had 1 of the cards for over 5 years, the other over 2 years, and the last one about a year.

Would it be possible that they could set up a payment plan for me? I really don't know what to do. I know I need to pay them off but like I said I can't afford to pay the balance owed. (A couple hundred for each) and I really do not want them to be sent to collections to damage my credit even more.
Any advice is greatly appreciated!!!

[ck2007]

Also, the reason I can't get a debt consolidation loan is because of my debt to income ratio.
Also, one of my cards is through Barclay and the other AMEX. If anyone is familiar with them and how they work with this sort of thing.

[Lowexpectations]

What are your options for cutting expenses? Do you still have cable? Internet? Are you eating out at all? Taking your lunch? What about your SO? Can you deliver pizzas in the evenings?

[ck2007]

We have cut back on all expenses that we can, satellite radio, eating out, shopping, etc. we can't cancel our cable because our contract is not up yet and if we cancel early that's just another debt we would have because the charge is outrageous. I work an 8-6 job and he works a 6-5 so picking up another job would be hard. I've definitly thought about it and have even looked but most places need someone to come in before 6.

[Beaconowner]

Here is my experiance.

Regarding your credit cards, call the companies directly and negotiate a reduction in the balance and a pay off amount. Google how to negotiate with credit card companies and you will find a lot of good advice. You can reduce the amount you owe by as much as 40% or maybe a bit more. Don't pay an "attorney" or a company that specializes in debt reduction. Many of them are rip ffs that will take a big fee to do what you can do yourself, by working directly with your credit card companies. I was able to reduce my debt by thousands of dollars, and paid the balance off over 5 years. Good luck.

[Kim in FL]

decrease your expenses and increase your income.

Call the cable company and disconnect the cable, it's cheaper to pay the fee than to keep paying the bill. Sell some of your things on Craigslist. Get another job...there are plenty of jobs that will work around your current work schedule. Keep track of every penny coming in and going out, but make sure you're putting money away in an emergency fund (your credit card is NOT an emergency fund...cash is!) and making payments on your debt.

[lurtsman]

Hey ck2007,

I'm sorry for the situation you are in, but congratulations on taking the step to look for help. I don't have all the answers, but I can give you a few reasonable steps that will help. Yes, I've done this for many people.

1. Create a list of all the amounts you owe, and the resources you have access to.
2. Prioritize the lists of amounts owed so you know what is most important. A 750 is a very respectable credit score, so I believe you have some understanding of how to manage your finances.
3. Call the credit card companies and tell them you are behind but would like to work with them. You want to set up a payment schedule. They really don't want you to default. It may seem like they do sometimes, but their business doesn't work if clients default. Some may offer to work with you. It is unlikely any will wave part of the balance, but they may be willing to lower your interest rate, especially if you are open to a payment plan.
4. Do you have high speed internet? If so, who is it with? Is it bundled with your cable? Look for savings here. I don't have cable TV, I don't have home phone. I pay 20$/month for internet. 40Mbs/down, 5Mbs/up. The normal price for that is around 70 or 75. When my promotion period ends, I call customer retention and tell them what plan I was on, and that I would really like something like that again. They offer me something. Sometimes it is great, sometimes it is mediocre. This is the best offer I've got. It used to be around 35 to 40/month. They offered 20/month if I agreed to a verbal contract to keep their service for a year. Great deal.
5. Cut up the credit cards with the highest rates. You won't want to be using them anymore.
6. Do you have student loan debt? Many people do. The rates on student loan debt are lower than on your other debts, so if you have it, contact them to ask for a period of forbearance. During that period interest would accrue, but you would not have to make any payments for a year, then your normal payments would resume. This would allow you to pay down the higher interest rate debts.
7. Don't watch QVC. Nothing good comes from watching QVC.
8. Paying interest can be tough, but paying fees can be even worse. Use your list of amounts owed to ensure you won't be incurring any "fees". Paying (for instance) a $30 late fee on a bill that is only a hundred dollars is very painful.

[jghorton]

Allow me read between the lines of your dilemma. You are both working full time, you (individually) maintain a 750 credit score, you have maxed-out three credit cards ... AND a $1000 unexpected expense has turned your 'budget' upside down and stressed you out (do you even have a budget?). Unless you are both working minimum wage (doubtful, with your credit score), these factors evidence that you are spending almost everything you earn monthly and saving little or nothing.

Since your fiancee has poor credit record and you have always paid your bills on time, (plus, you are stressing; and putting things in your name against your better judgment), it seems likely that his lack of spending discipline is at the root of your spending and debt problem. Another factor seems to be the notion that you 'must have' everything you spend money on, ... even though you cannot afford it.

Certainly, catching-up and paying off your bills is a worthy objective! But, it will only provide temporary relief (following some painful discipline) ... unless you make some serious attitude and spending adjustments --- and get your fiancee's buy-in. You need to set-up a serious budget that includes at least 10-percent savings plus an emergency fund. Extending your Credit Card payments does not really addressing the underlying spending problem.

(I'm only guessing, but, I suspect that you currently keep your finances separate ... and that he pretty much spends what he wants, while you focus on paying the bills??). Honestly, your financial situation doesn't sound all that overwhelming. But, since you and your seem to have different financial priorities, you may need to seek some outside budgeting and financial management counseling -- as you head into marriage. - Good luck.