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The greater issue is how she will live in the future. $1100/mo is not going to cut it, especially after inflation starts kicking in from the current round of bailing out the ultra-rich somethingsuckers. I'd suggest she go through bankruptcy, and have you approach the court as being her conservator. It is a thankless job, but the stark reality is she could end up on the streets otherwise.
How about consumer credit counseling - the one that is a true nonprofit? They helped us when we were first married many years ago and got in over our heads. They negotiated with the card companies, helped us with a budget, and we paid everything off without going bankrupt. We did have to cancel the cards for the arrangment but it was worth it.
Moral obligations aside, why would she bother filing bankruptcy? It makes as much sense to just stop paying. She's 70, so she won't be buying a house or a car or taking out a student loan. The only thing a bad credit score will affect is her ability to rent in the future.
The bigger question is how to lower her living expenses so she doesn't feel obligated to use her credit card to get her through the end of the month. Can she live with you, or someone else? Does she qualify for food stamps or any other housing or utility assistance?
For the record, I don't advocate anyone walking away from legally incurred debt. But if she doesn't have the income to cover her expenses and no reasonable expection of increasing her income, what else can she do?
At the very least she needs to go to her congressman/senator because there are laws coming against this practice in 2010 that they need to accelerate to NOW [changing the terms on customers who meet the expectations]
This is happening everywhere and people in this situation [carrying balances long term, making minimum payments] are having this happen to them without any writing on the wall.
I only "hope" I saw the writing on the Wall with my AMEX on which I have 1.99% life of balance and have doubled the payments I am making, but am sitting on edge because they have already capped my maximum [even though I never made a charge on the card after the balance transfer] and offered to pay me to pay off my balance.
I hate the thought of her walking because ultimately that screws the rest of us. The damned companies aleady have our tax money, how much more do they want?
With that income, your mother would be eligible for all kinds of gov't. assistance. Lots of paperwork to complete but worth it. I know someone with that level of income who gets all kinds of assistance with medical benefits, food stamps, utilities cost assistance, etc. He's not even disabled. What about Social Security SSI? (supplemental to regular S.S. payments). You are a GOOD son(daughter?) to look after your mother like that--bless you.)
My mom has approximately $15,000 in cc debt. She is disabled and is social security and SSI. She currently is up to date on her payments but I dont know how long she is going to be able to keep this up. They already raised her interest rates which increased her payments. She has never been late but they raised her rates anyway, when she asked them to lower it they said that was their policy due to the economy and that interest rates could be raised basically anytime they wanted to. Anyway what should she do? I am in no position to help her being that I am a broke college student..lol but she is paying it and wants to pay it but I am concerned because they have already raised her rates twice. If they keep this up there is no way she is going to be able to even make minimum. I have also noticed that she is paying the increased minimum and then paying other household bills like the telephone or her car insurance, basically robbing Peter to pay Paul. She has recently cut back on food so at this point what is her options? Should she stop paying or file bankruptcy. She wants to pay it because she assumed this debt and wants to be responsible but her income is very limited and she is unable to work. Any suggestions would be helpful.
My suggestion is that your mom contact a certified non-profit agency. Since she's on SSI, it would appear she is not able to work (forget about her age; lots of people work into their 70s if they have to...).
With her limited/fixed income in mind, and her inability to work, the agency should be able to negotiate either zero or low percent interest for a couple of years and/or a reduction in the principal amount owed.
I do pro bono debt counseling in my area and have found some banks/lenders are open to the above proposals, as long as they come from the appropriate agency and of course they must be in writing.
In some cases, debtors are judgment proof and if they stop paying, nothing can be done about it. Not knowing all the circumstances I don't know if your mom falls into that category, but in any event, it sounds as though she wants to do "the right thing"...?
First of all your mom should be able to qualify for many of the hardship programs creditors offer. Morally, we all have a responsibility to pay our debt back, I agree with Woof Woof Woof, morally is one thing but if you do not have the money, now is not the time to feel bad.
Second, creditors will if you speak to them in an assertive matter lower interest rates. Simply tell them tha6t your mom is 70 years old and living on Soscial Security. They cannot by law garnish her Social Security.
Third, have you tried consolidating all of her credit cards into one monthly bill?
Fourth, I do not suggest a debt setlement program for your mom. She will have to pay a retainer fee, maintenance fees and commission fees. No way Jose, try steps one and two if that does not work, speak to a lawyer about BK.
Remember, speak with confidence to creditors and tell them if they do not place her on a hardship program or lower her interest rates it will be very difficult for them to collect from her!
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in cc debt. She is disabled and is social security and SSI. She currently is up to date on her payments but I dont know how long she is going to be able to keep this up. They already raised her interest rates which increased her payments. She has never been late but they raised her rates anyway, when she asked them to lower it they said that was their policy due to the economy and that interest rates could be raised basically anytime they wanted to. Anyway what should she do? I am in no position to help her being that I am a broke college student..lol but she is paying it and wants to pay it but I am concerned because they have already raised her rates twice. If they keep this up there is no way she is going to be able to even make minimum. I have also noticed that she is paying the increased minimum and then paying other household bills like the telephone or her car insurance, basically robbing Peter to pay Paul. She has recently cut back on food so at this point what is her options? Should she stop paying or file bankruptcy. She wants to pay it because she assumed this debt and wants to be responsible but her income is very limited and she is unable to work. Any suggestions would be helpful.
