Debt Management Advice

Debt Help for A Struggling Mother Behind in Her Bills

I am really in a bad way. 6 months ago I moved, got married, and was out of a job.

I recently found employment, although half of what I made last year.

Last month my ex got fired from his job, and now I am not receiving the $800 in child support a month like I have been for the last 6 years.

I am at least 1 month behind in paying the minimum on my credit cards. I am in debt about $18,500.

What can I do?

Before I moved, I had a high debt to income ratio, but I was paying more than the minimum due, and actually paid some off.

My credit score the last time I checked (about 2 months ago) was 640.

Diane

---

Although your ex is not paying you right now, the $800 a month is still accruing. You can return to court to get him to make up some of the arrears and to start paying something again.

Otherwise he can wind up in jail.

So the first step would be top see a lawyer and have him take the necessary action to enforce the child support decree.

I don't know what your income is, but $18,500 is not an insurmountable amount of debt. Also your credit score is not all that bad.

You can try for a debt consolidation loan, but only if you swear off credit forever. Otherwise you will be in an even worse situation by this time next year.

Other things to consider is to temporarily cut expenses to the bone while trying to increase income by either changing jobs or getting a second job.

It will be tough going for a while, but after a year a so, your debt should be a lot more manageable.

Many creditors will give you a three to six month payment holiday if you ask for it. However, the downside to that is that you are alerting them to your problems which might lead one or more of them to invoke the "universal default clause" which can result in a big increase in your credit card interest rates.

Bankruptcy is, of course, an option, but the downside, like the inability to get a better job is something you should seriously consider.

You are required by law to go through credit counseling before you can file for bankruptcy. You might want to consider meeting a counselor to see if he can help you get through this rough period.

  | Top | Questions | Home |