Hello. I'm a single mom who is currently not receiving any support from the father. Due to the legal battle we have gone through this last year, I have acquired approximately $35,000.00 in credit card debt. I had around $15,000.00 prior but was doing okay and slowly getting it paid down. However, I'm now at a loss. Most of the cards are about maxed out and I'm struggling. I am due my tax refund of about $4000.00 however I don't expect to get much from the father and don't want to count on his support as I don't know how long he'll have a job. I've heard a lot of talk about settling on your debt? Has anyone done this? And done it by yourself and not by going through an agency that will just take your money and charge horrid fees that are hidden? I know this has adverse effects on your credit rating and that unless your debt is more than what you own, you cannot claim insolvency? Otherwise you can be taxed on the amount that you settle with the credit card companies per the IRS? I did go to the CCCS but it would be approximately $800+ per month and there is no way that I can afford those payments on a monthly basis plus daycare and house payment, bills, etc. My credit card minimum payments are around $550.00 per month. I've tried to consolidate and get them all on one and haven't been able to get a loan or a credit card with 0% because it's considered unsecured debt. My income is about $45,000.00 so I do not qualify for any Government aid as far as I know (i.e. WIC). Please give me some advice...
Bless you. You are staying positive and looking for solutions, and I commend you for that. i am in a similar situation, having become a single mom unexpectedly recently to 2 little boys. My husband left us deeply in debt (I've never had an ounce of debt before, so it is shocking.) Are you willing to do something outside of your current work to make the $ needed? This has saved me... I have residual income from a business I started 11 years ago. Watch www.nsevideos.com and e-mail me at [email protected] if you would like to get more info and check this out. If you are willing to work hard, I will help you build something to take care of you and your child that will last a lifetime. Whatever your choice, may God bless you and your family on your journey. Stay strong... you can do it.
The best advice I could give you is to check out DaveRamsey.com. He is wonderful! Be careful of companies that say they can get rid of your debt. They will charge you a fee with no results. Hang in there! I know how scary things are right now. I would continue to get a court ordered child support from your ex even if you don't think he will pay because it will continue to add up. He will eventually pay because the state will start to enforce it if he gets too far behind. I hope this helps! Good luck.
If you can avoid it, do not do one of those consolidation companies. Start off by calling the credit cards yourself. Ask them if they can lower your interest rate(which they usually can). They will also usually change the date that the payment is due if you ask them too which can help as you make your budget. If you can, use that tax refund to pay down the cards. Don't do just a little bit on each one though, pay off as many as you can so that the payments that you would be making to those cards can go toward another card. When you have 4 or 5 cards, at $20 a payment, it can really add up quick. Also, make sure that you pay the cards on time so you don't incur fees, they can kill your credit score and get you going in the opposite direction of where you want to go. Cut them up so you can't use them anymore.
One more thought, have you ever looked into WIC? It is a great program that really helps with the grocery bill when things are tight. It is based on your income and the number of people in your family. We did it for a long time when we were struggling with the bills and it really was a life saver. They usually provide milk, eggs, cheese, and peanut butter for toddlers and in the summer, you get checks that you can use at the farmers market for fresh fruits and veggies.
If you would like more specific advice based on your situation, send me a message. My husband and I have been there and my hubby used to be a banker so there are a lot of things that we could possibly help you with.
You can try to call the credit card companies to lower your interest rate so you can pay it off faster but I've had very little luck with that myself. Some will lower it by a few points (which is better than nothing I suppose) but you have to close your credit card with them. Its possible that the credit card companies have even raised your APR to something astronomical without you even knowing it. They can raise their rates for any reason and some have done so. They are required to notify you first and you can opt out but if you don't read your mail you may not have seen it. I pay online so I rarely open my credit card statements. Its really worth a try to call them and see what they can offer.
As for the dad. If you already have a child support order in place. I don't think you need to go through the courts for enforcement of the child support. Contact your states child support enforcement office. In Kansas, they enforce the child support order and threaten jail if they don't pay.
I wish I had better answers. Good luck!
Look into Dave ramsey's financial program. I know alot of people who have success with this and I'm looking into it myself.
Have you heard of Dave Ramsey? He has wonderful advise. There's a best seller book "The total money makeover". He has a national talk radio show. In the KC area he is on 710 AM Monday through Friday 11:00am to 2:00pm. He takes calls. His program does work. He also has a website. It's all about getting rid of debt by going through the baby steps. As I've learned from Dave, if you settle on debt, DO NOT give them access to any accounts. Do Not send a dime until you get the agreed on settlement in writing. And never lose it. Best of luck.
Traci H
Raytown, MO