Don't Know Where to Turn. Please HELP!

**jpg7n16** · 11-07-2012, 04:27 PM

Originally posted by imasumak View Post

Here is the problem: First and foremost I want to protect my credit rating.

It sounds like you're having significant difficulty meeting your monthly obligations - even being able to afford food is a struggle. Not counting the need to pay for medical care.

Credit ratings affect your ability to borrow more money. Food/medical affects your ability to live.

With that being the case, why is your credit rating so important to you at this time?

I want to consolidate this debt to before I am unable to maintain the monthly payments which is a situation one month away.

Eliminating debt is better than consolidating debt. What options have you considered to eliminate the debt?

You said you're a senior, how old are you? What options have you considering for finding work?

The debt I need to consolidate/transfer is I "Think" itself preventing me from my only solution.

I do not believe that consolidating debt is your only solution.

I am alone with health problems and trying to figure out a way out of this mess and my daily stress level is off the charts to the point that I don't even function properly. I feel like I'm dying. Please help me if you can. Many Thanks!
God Bless!

I think we could really help you find a way out of this mess. To best help you, we'd need to know a bit more about your situation. Would you mind answering some additional questions?

What other savings have you built up? (bank accounts, IRAs, old 401ks, CDs, etc.)
What assets do you own? (house, car, furniture, etc.) Do you have anything around the house you could sell?
What is the source of your pension? Is there a COLA rider on your plan?
When do you plan to begin taking Social Security?
Would you be able to post a full listing of your expenses each month?

The answers to these questions will really help us start to understand more of what your options are to get out of this mess.

**disneysteve** · 11-07-2012, 05:21 PM

I agree with JPG that we need more info.

Also, you said you got these cards in 2007, just 5 years ago. What did you use them for? You have $21,000 in debt now and I assume that was higher previously. Where did all of that money go?

We need to see your total income and a breakdown of your expenses.

**Ramose** · 11-07-2012, 10:03 PM

Originally posted by disneysteve View Post

I agree with JPG that we need more info.

Also, you said you got these cards in 2007, just 5 years ago. What did you use them for? You have $21,000 in debt now and I assume that was higher previously. Where did all of that money go?

We need to see your total income and a breakdown of your expenses.

That's what I was wondering.

**Gailete** · 11-08-2012, 07:00 AM

If you 'own' your own home at this point, why do you care what you credit score is? Are you planning on asking for a loan for something? Yes credit scores can affect some things but since you are a senior citizen, you are probably past most of those things at this point.

I too am curious where that money that you charged went to. Medical bills? Never, ever charge a medical bill! Work out a payment plan with the place. Yes, they want you to charge it so they get their money, but that doesn't mean you need to. Work out a payment plan with them that allows you to eat.

Next get on the phone now with both of those credit card companies and ask for a reduction in your interest rate. You need to remind them that you have been with them for 5 years without a missed or late payment and you want a reduced rate or you will change to a different card. Not saying you want to do this or that you will, but they hate losing customers. By doing this you might be able reduce your interest rate and your monthly payment. If they don't want to then you tell them, if they reduce your rate you should be able to keep up your payments, but if they don't you won't be able to and the bill will go to collections and never get paid.

Since you do have internet connection, then no reason that you can't find a way to make some money on line. There is some advice on these forums on how to do it. You may only make $25 a month but in your circumstances that would be a huge help. If you have health issues and aren't working and can't work out, working on line can be a big help to you. Also you can find some savings through the internet for stores where you generally shop. I found that I end up buying most of my cereal, coffee and toilet paper at CVS when they have them on sale. I earn bonus bucks. I did a survey for them last week that earned me $5 bonus bucks and since it was my birthday, they sent me $3 bonus bucks. My shopping with them last week earned me $11 in bonus bucks that I can spend like cash in the store. Just about every other week they give me 20-30% off on non-sale items in the store! By paying attention you can really score some big savings. But explore the opportunities available to you on line. I'm disabled and was able to start an on line business that really helps our bottom line and still allows me to take frequent rest breaks and go to doctor appointments as needed. There is hope and I feel your pain especially as you are alone in this.

**imasumak** · 11-08-2012, 10:49 AM

Responses!

1.No.My debt on these credit cards accrued from 0 to the present balance since 2007.My balances have never been higher than this. In spite of occasional above minimum payments over the years of as much as $1000 when was possible, the interest and added necessities still out ran my attempts to reduce my debt.

2.My credit rating is so important to me because having a credit card is to me a form of safety and mental security, should an unexpected emergency or expense occur. There are and have never been any "luxury" items of any kind in either my budget or accumulated debt.Since becoming disabled I have also become reclusive knowing that I cannot participate in outside activities which would in any way impact on my finances.Television,the internet,reading and writing has replaced all of that."Needs Must!" I regard my credit cards solely as a lifeline.

3.I are 68 yrs old and due to medical problems have been Permanently Disabled for the past 8 years. Gailette, your mention of online employment is one I am very interested in. I know nothing of how that works. Can you perhaps recommend websites, which could help me to get started on this?

4.Sources of income are Social Security (This was termed "Disability" until I turned 65 three years ago when it became Social Security) and a very small monthly pension without the mentioned Cola Rider. Social Security has occasionally provided a Cost of Living increase (3%) in some years, however this is a "false" increase. A Medicare premium is deducted monthly from social security. When a cost of living increase is given, this premium automatically increases so it amounts to a governmental "giving with one hand and taking with the other" situation.

5. My budget is bare bones one. Rent: $1,082.00 (I have lived in my apartment for 17 years.) Utilities: $50 per month, Internet Service $56.00 per month, Auto Insurance $40. (See note below) Total: $1228.00 per month. I have exhausted my savings having used that to supplement the shortfall in meeting my credit card payments. I have used my credit card for food, which runs approximately $150 a month.I manage that expense with extreme diligence using coupons, the 99 cent store and even shop at several supermarkets in pursuit of savings on individual items and adjusting my diet as required.
6. My auto, which is a necessity, is a 1990 Lexus, which, although in mint condition, I have discovered cannot be used as collateral in a loan situation because of its age. My possessions amount to my household furnishings which are not of great value however, considering your suggestion I am taking an inventory to see if there are items which I can do without and sell.

There is a situation on the horizon, which will yield additional income.
A year ago I was rear ended while stationary in my auto and my lawyer has informed me that I will receive after expenses, a settlement of $6,000. Although expected soon he is unable to say exactly when. Given the time constraints on my present situation, I cannot depend upon that at present to head off disaster. I am embarrassed by my ignorance of money matters but am at least not too embarrassed to state that this is the case and ask questions. Therefore I would be grateful if you would advise me as to exactly what I should do with this settlement when it is received and how it should best be used to help my situation.
I hope that this additional information will be useful. I thank you again for giving of your time to respond to my posting. God bless.

**Petunia 100** · 11-08-2012, 01:14 PM

Imasumak, your income is $1,435.00 per month, and your rent is $1,082.00 per month, leaving you $353.00 per month for everything else. This is why you are having trouble. Consolidating your credit card debt is not going to solve the problem. Putting your expected 6k settlement towards your credit card debt is not going to solve the problem.

I suggest you concentrate on finding a more affordable place to live, or find a roommate.

**Gailete** · 11-08-2012, 02:39 PM

Yes, you need to find subsidized housing for poor seniors. Nothing to be ashamed of, just folks that don't have a lot to live on. I believe that you have to pay 1/3 of your income for the apartments, at least that is what it is here in my area which would leave you lots more income to live on. Any local senior center or group can help put you in contact with the right people. I realize that you may not want to move, you you can not afford where you are living at all.

I hear you loud and clear on the disability and not being able to go out or do much. I've been out of work over 10 years now due to severe arthritis and receive SSDI. It isn't enough to live on and I techniquely get above average benefits. By the time I pay my Medicare premium, MC supplements C & D and copays on my monthly meds and mortgage, it is pretty much gone. My husband has health problems as well and so we scratch where we can, doing what we can to get in enough income to live on.

Your apartment is a very expensive one for the area I'm living in, don't know where you live and what is reasonable, but if at all possible, you need to move while you still can (don't wait until you are in your late 70's). You are using your credit cards as 'income' with no idea how to pay it back so until you solve the hosuing problem and the interest rates on your credit cards and how to pay off the loans, you are going to have a tough time and may need to apply for banruptcy to discharge those loans, but that isn't a permanent solution without a budget that truly covers your costs. You can not continue to keep adding to those credit cards by charging food and necessities. Like I said, you need to try to lower the interest rate if at all possible by calling them and asking. I have done it more than once and it helps.

There are many different ways to make money on line, not always a lot, but since you don't seem to have much else going on then you have the time to research and see the possiblities. There are several threads in this forum about making money on line and you can also do a Google search about making money on line. Just remember Never, Ever spend money to make money, Don't buy silly things like ebooks intending to resell them for profit. Anything that costs you a penny is a sign to hit the back button on your computer. I currently with hubbies help sell sewing patterns on line, I have a blog and have Google adsense ads and Amazon affliate ads on it and my ecrater store, I do some surverys for money or store credit, some people write articles and get paid. All sorts of things. Research them and see what you find. but the two most important things is find out about cheaper housing and getting those card rates down.

Do you have children? Do they know what a pickle you are in and can they help? Any relatives if no children. Even with a disability, are you independent for all your daily activities so that you could move in with someone as a companion, house watcher? Do you have a church that can help you. Are you taking advantage of the local food pantry--please note if you only can have food by charging it, then you NEED to use the food pantry. Swallow your pride if you have to and see if there is anything you can do to help them so you feel you are earning your fair share. And forget about your credit rating, that is the most unimportant item in your finances currently.

**disneysteve** · 11-08-2012, 05:08 PM

Originally posted by Petunia 100 View Post

Imasumak, your income is $1,435.00 per month, and your rent is $1,082.00 per month, leaving you $353.00 per month for everything else. This is why you are having trouble.

I agree. This is not a sustainable arrangement. Housing should be no more than 28% of income. You are running at 75%. No wonder you are having trouble. You need to start looking for more affordable housing.

**LMA** · 11-09-2012, 05:01 AM

Have you considered talking to the credit card companies and asking them to lower your interest rate?

You might tell them the pickle you are in and see what they can do. I have heard of cases like this were rates have been lowered.

**Gailete** · 11-10-2012, 06:07 AM

Have you considered talking to the credit card companies and asking them to lower your interest rate?

That is what I mentioned as the first and foremost thing she needs to do NOW. Every day she waits she is accruing more interest at a higher rate.

Then she has to find cheaper, much cheaper housing. Federally subsidized would be best. Apply for food stamps as well and assisted MC benefit/supplements. Most people who have lived the middle class lifestyle don't realize all the benefits out there available to poor people and they need to take advantage of them.

**Petunia 100** · 11-12-2012, 12:17 PM

Are you still reading, Imasumak? What do you think about the responses you have received so far?

I am optimistic that you can take some steps to improve your circumstances. Best of luck to you.

Don't Know Where to Turn. Please HELP!