Hi Money Minder,
I’m in over my head with credit card debt and I could really use some guidance on how to tackle it. I’m a single parent trying to make ends meet, but my income just isn’t cutting it. I’ve had to rely on credit cards for essentials like daycare, car insurance, and even groceries. It’s getting to a point where it’s just not sustainable anymore. I always pay more than the minimum, but the balance keeps growing to a point where it’s hard to keep up.
I have 4 different credit cards and I think I’d have a better chance of making progress if I could consolidate them into one monthly payment of $800 instead of juggling 4 payments of $200 each. Should I consider bankruptcy as an option? What would that involve? My credit score is in the 700s, in case that matters. I don’t own any fancy stuff like a house or a car…
I’m pretty clueless about all this, so any advice you can offer would be greatly appreciated.
Thanks so much for your help,
Susan Struggling
Response from THE MONEY MINDER:
Hello There,
I’m sorry to hear about the challenges you are facing with your credit card debt. It’s understandable that being a single parent and struggling to make ends meet can be overwhelming, especially with the added financial burden of daycare, car insurance, and other expenses. The fact that you have been making payments above the minimum balance shows your commitment to resolving this issue, but it’s clear that the situation has become unsustainable.
Consolidating your credit card debt into one manageable payment could be a practical solution. This can help streamline your payments and potentially reduce the overall interest you are paying. Before considering bankruptcy, I would recommend exploring debt consolidation options with a reputable financial institution or a credit counseling agency. They can guide you through the process of consolidating your debts and creating a realistic repayment plan based on your current financial situation.
Given that your credit score is in the 700s, bankruptcy may not be necessary at this point. It’s important to weigh the long-term consequences of bankruptcy on your credit score and future financial opportunities. It’s encouraging that you don’t have significant assets like a home or a fancy car to lose in bankruptcy, but it’s still a serious decision that should be made after thorough consideration of all your options.
I understand that this is a challenging time, but taking proactive steps to address your credit card debt is crucial for your financial well-being. Remember, you’re not alone in this journey, and there are resources available to help you navigate through it. All the best from THE MONEY MINDER.
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