Someone PLEASE help me to figure this out. I have been unemployed for most of the past 2 years. I have recently begun a job and am making barely enough to live off and have moved in with a friend to save expenses. I have had perfect credit up unitl now... just 2 months ago I missed my first payments on my 2 credit cards and haven't made a payment since. At first I told the CC company that I wasn't able to make a payment for a few months, but now I see that I don't have enough money to make a payment at all and don't see myself having that kind of money again in my current job. I see no higher paying prospect either, and trust me I have been applying for the past 2 years. My debt with the 2 cards is 20K each, with a total of 40K in cc debt. I also have 14K in student loans on top of that, which I just caught up payment on. These debts are all from school expenses, I thought I'd be able to pay them off shortly after school but but I was not able to complete the program. My question is this... if I just don't pay my cc debt, have no house or property, and my car is a clunker, have no dependents, what will eventually happen? I already am being called 13 hours a day by collectors and it's only been 2 months. Would I be better off just filing bankruptcy? My income 3 years ago was 43K, and now over the last 2 years it has been a total of 15 K (mostly earned the second half of 2008). If my credit is going to be ruined anywya, why not just file chapter 7 bankruptcy if I have no way of paying it off over the next decade? Bankfuptcy seems my only option, but I know I feel desperate now and hate to do something so drastic if there's a better way... I just need to know what the better way is and what to expect. PLEASE someone enlighten me. Thank you!

P.S... I live in Georgia and have 2,000 $ in the bank for survival if I need it (ie, medical expenses or my car breaks down or I lose my job).

First call the credit card companies and explain your situation... ignoring them won't stop the calls. Some companies will try to work with you... others won't. If that doesn't pan out, you might check first with a credit counseling company (be very careful and make sure it is legitimate) as they sometimes will be able to work out a deal for repayment with the credit card companies.

Bankruptcy is another option but should be the last. You can set up an appointment to speak to a bankruptcy lawyer to get their input without a cost to you... might be wise to speak to a few to hear different opinions on what your best option will be at this time. The student loan is yours regardless as that would not be discharged with a bankruptcy.

What kind of job did you get? How far did you get in school? You may need to find a second job. (I'll help you--for free--with a resume, if that will give you any clout. Post something on the Resume board, and PM me that you did so, so I will look for it.)

You are definitely not alone. There are lots of people in your shoes, and lots of people who will help you figure this out. Things will improve in our economy, but it will be slow. Bankruptcy is not the way to go.