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Finances, Care One?, Bankruptcy, Try to pay a little?

Okay it's official having 3 people and only a husband working doesn't work very well. I have credit cards that i had pre marriage that i haven't been paying on and my husband does to. Our credit is down the drain! I think the debt were not paying on totals some odd 38,000.00 in medical bills, credit cards, unsecured debt. I know i did it to myself but it's time to get myself out of this mess. I need to know the best way to go about this my husband is getting a small life insurance settlement from the death of his grandmother but nothing that is nearly going to cover that. I think we will get about 6000.00 or so and care one said that i could make 411.00 payments a month on that debt. However it is going to take 3 years or more to pay off could just use a little advice.


Asked by Anonymous at 4:54 AM on Aug. 4, 2009 in Money & Work

This question is closed.
Answers (5)
  • You've got your work cut out for you. First though, know that anything a credit counselor can do for you, you can do for yourself free, so don't waste your money on them.

    1. Call your debtors (credit card companies, etc.) and work out a re-payment plan. Go as low as you can and have them freeze your accounts (meaning you can't use the card anymore, but you're not closing it)...that usually brings your payment down.

    2. Write your must pay bills (mortgage, rent, utilities, etc.), your debt obligations, then your extras (cable, entertainment, etc.). You need to learn to live on the bare minimum for a while so you can pay your debt and get back on your feet. That means shopping generic brands, stop eating out, borrow books from the library instead of buying books, cut cable if you have to.

    3. Learn to pay cash for everything!

    4. Get extra income....everybody's gotta work! It's not fun, but it's necessary.

    Answer by Anonymous at 3:59 PM on Aug. 4, 2009

  • Have you considered getting a job? Alternating shifts or something. I'm sure that would hlep. I would call the companies and tell them you'll pay as much as you can every month. The medical bill places are usually very lineant with those things. And I would suggest canceling ALL of your credit cards, if you haven't already.

    Answer by SaraP1989 at 5:23 AM on Aug. 4, 2009

  • We are in a similar situation. Credit counseling told us to file for bankruptcy; 2 bankruptcy lawyers told us that we did not make enough money to file...

    Answer by Anonymous at 6:27 AM on Aug. 4, 2009

  • Get Dave Ramsey's Total Money Makeover. he gives great advice. And quite frankly if it takes three years, consider your self lucky that it does not take longer! I would advise you to get another job....any job! Make any and all cuts where ever you can! And whatever you do do not make more debt to pay off the old debt!

    Answer by Rebecca727 at 7:43 AM on Aug. 4, 2009

  • My first advice is to join the Dave Ramsey Fans group here on CM. A great group of ladies and we have lots of encouragement, tips and advice on how to follow the plan to get out of debt.

    You can do everything that Care One would do without paying their fee.

    Cut out all unnecessary expenses and do your best to lower the necessary ones. Set up a small emergency fund of $1000 first so that you have something to fall back on in case of emergency and you won't have to charge on your credit cards. Next, while paying minimum payments on other bills, pay off your smallest debt with every bit of extra money you have then roll over any extra money into paying the next smallest debt when that one is gone. If any accounts are in collections, let them go (pay a minimum amount to avoid lawsuits) for now. Get rid of your credit cards! Make a budget and stick to it.

    Answer by michiganmom116 at 10:15 AM on Aug. 4, 2009