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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.
I am in no position to help her being that I am a broke college student
If you benefited from any of those credit card transactions, you should feel morally obligated to help financially . . consider contributing vacations funds.
No i have not benefited from any of the purchases and my vacation is only going to cost me $250.00 including airfare. Besides it isnt even enough for the minumum payment. Plus I deserve my vacation, I put in alot of hard hours, putting myself through school, taking care of her (cleaning, running errands, cooking) and being a divorced single mother. If I was in a better position I would definitely help my mother but I am not. I could help when I finish school in a couple of years but I doubt she could hang on that long.
Tell your mom to call each of her creditors, explain the disability and see if they would lower the payment without harming her credit. I know someone who did this with Bank of America and they lowered from 19% to 5% for the next 18 months.
Don't even bother talking to the companies, the hell with them.
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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.
Pay it back? good luck with that one. The credit card companies these days are too aggressive with their policies. Interest rates too high, fees too high, every "got 'cha" trick in the book. Forget about it. Just file for bankruptcy and live within your means.
IF there's any way that between the 2 of you, y'all can come up with $3000 to $5000 in cash, you can negotiate with her credit card company to pay it off. You'd have to let her get about 60 days behind in payment before the bank would consider a settlement, so there would be a black mark on her credit history, but nowhere near a bankruptcy. But the bank will settle for far less than what is owed. I had to do it years ago; I'm not really proud of it but it kept me out of BK. If you decide to go this route feel free to DM me and I'll explain in more detail.
Check out Bud Hibbs website. If your mom is only able to make the minimum payments on a high-interest card, then what's the point? Might as well quit now and save your money for food. And just ignore those crazy comments about "moral obligation." I don't encourage people to live irresponsibly, but this is business, and ultimately, you do what you have to.
Be aware, if you settle with each credit card company, they can send you a cancellation of debt reportable to the IRS (if over $600). This will be reported as income and will also be reported to the credit bureaus affecting her credit.
Some companies are now lowering rates. Try it.
Also, she has a moral responsibility to pay them. That's why we're in this mess.
If she files for bankruptcy, we all pay in the end.
Let's start being responsible. It sounds like she wants to be.
She could go to a debt counseling service or consumer credit counseling and they will restructure the payments for her but it will affect her credit.
Good luck to you.
Note: A parent hates to ask their child for help but if your mom is disabled, maybe during your time off or summers, you could help a little, even $50 a week.
I hate debt. I remember a couple of times when I was so short on money I had no food for a couple of days, but I never got into debt, that is like a taboo to me because I hate those companies living from people's debt like parasites.
Thanks for all the comments I will discuss some of them with her. She is approaching 70 years of age and I looked at her statments and most of the charges are for food and electrictiy bills and other living expenses. She has one store credit card that is the lowest one but the visa is the one with the most on it. As I noted she lives on $1100 a month social security(and we live in the bay area, ca). I already help her with her food. I'm just being real, living on that income she will never be able to pay that off. I have a family of my own and me giving her $200 a month is not possible right now. Like I said when I finish school I could help her out more but I only work part-time because I am a full-time student.
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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.
. Besides it isnt even enough for the minumum payment. Plus I deserve my vacation, I put in alot of hard hours, putting myself through school, taking care of her (cleaning, running errands, cooking) and being a divorced single mother. If I was in a better position I would definitely help my mother but I am not. I could help when I finish school in a couple of years but I doubt she could hang on that long.
CC Debt
