Credit Card Debt vs An Emergency Fund

[JoyJoy]

Re: Credit Card Debt vs An Emergency Fund

Did you call the companies and drop him as an authorized user? Have you thought about getting a judgment against your husband so he can pay you or the credit card companies through the court? You definitely need child support. Also I'm glad the guy at the credit card company told you that they could/would lower your credit limit as they not only can do this but they can close your account to further purchases/cash advances so you can't utilize the amount you are sending in for fear you will use that too. I wouldn't worry about receiving interest on the monies you have coming in but would put it in a safe deposit box at the bank and pay what is absolutely necessary for you and your son to survive. If there is a soup-kitchen or a mission of some kind near you, go to them get on their list for free groceries and they may have credit advisers who can direct you towards a free community agency who can help you for no fee.

[Well Spent]

Re: Credit Card Debt vs An Emergency Fund

If I were you I would split the $800 between emergency savings and paying towards your debt. And i'd do the same thing with the $700 you're getting in a few months.

I am very concerned about the $47,000 cc debt. This agreement you have with your estranged husband - is it a legal contract? is it in writing that he is going to pay it instead of giving you child support? or was it a verbal agreement between the 2 of you? since you are the primary user and he's an authorized user, he could easily screw you over and leave you responsible for it. You should really deal with this now. I'm very wary of this aspect of your financial life. As far as I can see, it is the most dangerous part of your story. Think about it, if he mkes a low income and his work is unstable, why would he agree to pay 47,000 in cc debt instead of chld support, which would be much lower (in my opinion) because his income is low?

I think he's trying to avoid paying child support for your son and the cc debt. I smell a rat here.

[flash]

Re: Credit Card Debt vs An Emergency Fund

I am very concerned about the $47,000 cc debt. This agreement you have with your estranged husband - is it a legal contract? is it in writing that he is going to pay it instead of giving you child support? or was it a verbal agreement between the 2 of you? since you are the primary user and he's an authorized user, he could easily screw you over and leave you responsible for it. You should really deal with this now. I'm very wary of this aspect of your financial life. As far as I can see, it is the most dangerous part of your story. Think about it, if he mkes a low income and his work is unstable, why would he agree to pay 47,000 in cc debt instead of chld support, which would be much lower (in my opinion) because his income is low?

I think he's trying to avoid paying child support for your son and the cc debt. I smell a rat here.

I have the same concern. If you and your husband have agreed to this arrangement, the debt and legal responsibility should be formally transferred to his name. Period. $47K is a huge number to have looming around. It's not enough just to "get it in writing that he has agreed", you need to have it formally transferred to his name and responsibility.

Regarding paying the credit cards, under the new law, if you miss any payment on any card, the creditor can alert everyone you have credit with, and they can all legally raise your rates, reduce your limit, and even close your account if your risk has changed. That's ONE payment to ANY creditor.

I'd take the extra money and hire a good lawyer.

After I got out from the $47K threat, I'd worry about the rest. As long as you have that financial obligation under YOUR name, you are going to have problems.