CC Question (credit cards, debt, repayment, companies)

[FourOhFive]

My sister has fallen a month or two (i don't remember) behind on her credit cards. She asked me what she should do. I know she needs to call her creditors, but is there any brotherly advice that I can give her besides *pay your bills on time*?

Oh...background info if it matters...she is recently divorced, responsible for the debt, and trying not to file bankruptcy.

I've thought about giving her some money to catch her up, but I don't think that will solve the problem. Thanks all for the advice!

[berdee]

These days, many creditors will work out payment plans so people can catch up. Most of the time the creditor will freeze the account until it's paid, though some will close the account which should not be a factor if they offer a good deal in their repayment plan.

I've thought about giving her some money to catch her up, but I don't think that will solve the problem.

If you give her the money so she can catch up, will she be able to continue making the payments?

For advice, one of the most important things she needs to do is to make a budget and stick with it. She will probably need to cut some things out entirely. For example, find the cheapest phone service that she can and cut out long distance, caller ID, call waiting, etc., from the package. If she has to make any long distance calls she should get a cheap calling card, and also limit her length on the phone while making the calls. Cut cable, cut eating out, cut all unnecessary spending for things like unneeded (but wanted) clothes, shoes, comfort foods, etc., etc.

If she is in a low income job, she might consider picking up some extra work part time. If she has a low income and has children, she might consider getting food stamps. If she does qualify for food stamps, she would also qualify for the LifeLine phone service which is somewhere around a couple dollars a month for basic local service.

[chet everett]

The worst is if she just did not call or send anything to the CC companies -- she is now "60 days past due" and that puts a bad smack down on credit as well as getting late fees and penalties. Rate is probably already sky high. If she would have sent in her minimum payment that would not have happened.

You should try and work something out so that the fines and high rate is eased out.

If she has income that could support her continued pay down of the debt that should be the goal.

If she has no income, or income so small that she is headed toward insolvency then you need to make a hard choice to help her out until her income gets to where it needs to be or try to plan for the least devastating alternative...

[8 SNAKE]

Originally Posted by FourOhFive

I've thought about giving her some money to catch her up, but I don't think that will solve the problem.

You haven't really said what the problem is. We know the result (behind on payments), but we don't know the cause. Your statement leads me to believe that she's living a lifestyle that she can't afford and that a quick injection of cash won't do anything more than delay the inevitable. Can you expand a bit on her situation and what her future looks like?

[FourOhFive]

Thanks all for the replies. When I talked to her again yesterday she kind of blew it off. Her sights are set on going out with her friends Saturday night. Her lifestyle? Making just above minimum wage and decked out in all Ed Hardy. She had no problem with her bills while she was married and husband had a good job. I really just think this extravagant lifestyle on minimum wage will end soon. This is just her way of coping with the divorce.

That said though, and with her trying to avoid bankruptcy, I hope she figures something out soon. That is what brought me here when she asked me what she should do earlier in the week. Thanks again for the advice...

[chet everett]

I think you are a good guy but there is nothing you can do other than warn her that not paying bills and not having sufficient income to afford "luxury crusted" lifestyle will DRIVE her into insolvency.

Once she has more bills /debt than she can handle she will almost certainly end up in bankruptcy. If you want to help her understand what that will mean as far as her credit being ruined I think that is all you can do at this point.


The divorce is not good, but ruining her future is not a way to deal with it. You can't help some one that does not want to help themselves.

Read and summarize Ch 13 -- http://www.uscourts.gov/bankruptcyco...asics04606.pdf

[FourOhFive]

I've tried to tell her to just file bankruptcy. She's refusing to right now because filing is not the responsible thing to do, and she is trying to find a way to pay her credit cards. She doesn't have a house or car payment. I guess the brotherly advice would just be to grow up.

I looked at the lonk for chapter 13. I've only been 30 days late on a payment once recently and it was by accident. After reading the info on chapter 13, I want to file and pay off all of my bills in a few years! (just joking!) Thanks again for the help!

[Moonwalkr]

You're right, it's not really the responsible thing to do just like going out and partying and putting the tab on the credit cards. If she's really serious about it, she needs to start by changing her lifestyle, cut down on expenses, and work with the CC company on lowering the rate and start responsibly repaying that debt back.

[FourOhFive]

One last time, thanks everyone for their help. I will pass it on.

[suzie02]

Originally Posted by FourOhFive

I've tried to tell her to just file bankruptcy. She's refusing to right now because filing is not the responsible thing to do, and she is trying to find a way to pay her credit cards. She doesn't have a house or car payment. I guess the brotherly advice would just be to grow up.

She may be telling you what you want to hear so you give her some money to not file bankruptcy.