I have S45,000.00 in credit card debt and a $10,000.00 car loan. It was my fault that I got all of this debt, but I trying to pay it off. Some of my credit cards want me to pay them $1000 plus in a week just to payoff the late fees and penalities. My friends and family have told me to file for bankruptcy, while my supervisor and co-workers want me to pay it off. Most of my bigger and older credit cards have been charged off, and some creditors are threatening lawsuits and/or garnishment. I live in Colorado in a townhome with my family, between being a fall back person for money and babysitting I'm in serious trouble. I'm still trying to pay off four payday loans that I used to pay one creditor off. If any of you have any suggestions on I should or can do, I'm open to any or all of them. Can someone please tell me what I need to do?

Hello FMjohnson
45,000 dollars and a 10,000 carloan is a lot of debt. Payday loans are a big rip off for people in this country I know of some people that used these and ended up borrowing from one payday loan to payoff another payday loan! So it was a never ending cycle.
I would consider talking to a bankruptcy lawyer if you feel this would help you get out of this mess but keep in mind thatif you file bk it will stay on your credit report for 10 years
And with the new bk laws you will take a means test to see if you can file chapter 7 or 13

!! NO NO NO, do not touch a pay day loan, go to a loan shark named killer before you do that, they will only get you in a lot worst, that is the worst thing you can do.

Next you can only pay what your paycheck allows you to pay, period, and the worst, very worst thing they can do is sue you and get a judgement and perhaps garnish about 25 percent of your pay. So don't get into more debt trying to pay them off. What happens in two weeks , when they want more money and your four payday loan people all have to be paid, the payday people will sue you faster than the credit card people will.

** I don't know what a "fall back person for money" is,

First pay all of your real bills first, housing, electric, car payments and food and the such. Then see exactly how much money you have left from each pay check, tell them that is all you can do. Tell them not to call you again, but to send everything in writing, You pay them what little you can, and be done with it.

You did not say what your income is, if you are making 100,000 a year, no problem, you should be able to pay it in no time. But if you make 30,000 a year, file bankrutpcy and get it over with.

Next why do you care what co-workers are saying and even why in the world are you talking to your boss at work about gong bankrupt ?

But please just don't do payday loans.

slowandeasy agrees very well put!

Your credit is probably ruined. So the stigma of bankrutpcy shouldn't prevent you from doing it, so if you can't pay off all your creditors in 7 years I recommend you speak with a professional about filling for bankrutpcy. You might be able to call your creditors and work out a payment plan but if you are already in collections they probably won't be willing to work with you on that. Also don't tell your employer about your money problems most won't care and if things start to go missing the person that has money problems is normally the first one to be blamed.

Thank you. What I meant by a fall back person is that when someone comes up short on money, then I'm the one everyone depends on. My income was $30,000.00 a year, but is around $29,000.00 a year due to hour cuts and store closures.

If you owe 45,000 and a car note and only making 30,000 a year then I would seek legal
Advice for bakruptcy. Give yourself a fresh start and stop being the "fall back person"

Hello Fm:

The bankruptcy laws were made for someone like you.

excon

Yes, first why in the world do you buy a 30,000 car if you only make 30,000 a year. That has to take a major part of your pay right there.

But yes as excon said, you are who the bankrutpcy laws were made for.

BUT>>>>> learn a lesson from it, no more credit cards, cars that are within your real budget. Save money and the such.