Question So Very Confused

[coolman911c]

Im new at this and very confused

Here is my situation:
CC1 - 5000 min payment 150/month
CC2 - 3500 min payment 60/month
CC3 - 750 min payment 20/month
CC4 - 500 Min payment 15/month
Private Student loan 5000 min payment 90/month

Monthly income of 860
Rent is 550
Electricity is 150
Car insurance is 90
Gas is 40

I tried to talk to my credit card companies none of them want to work with me. I know that i dont have that much debt but i dont have that much income either. The only thing i own is 2 cars both are needed and the value of each is less than 1000. Im not sure what to do. My credit isnt that good so i couldnt get a consoldation loan. i feel like bankruptcy is my only option but i dont know how to approach it, im still doing research. any opinions would be greatly appreciated

[DebtEnder]

Based on your numbers after your basic expenses, rent, util, gas and insurance you have 30 dollars a months for food. You can't afford what you are paying for the bare basics let alone any thing else. Tbh bankruptcy at this point will not help you much. Getting rid of the debt you have now will still mean you are negative every month on semi-fixed expenses.

Only thing I could tell you 150 for electric seems a bit high if your rent is only 550. Maybe find a cheaper, better insulated place to live. At your income level there's not much to offer. You need to find a way to reduce expenses. Once you find a way to live and are able to pay rent and basic expenses plus that student loan off then maybe you can re-look at BK. Ignore everything else in your tentative budget. If you can't make it work then I have no other advice. But BK is a large tool you should hold off on till you know you can make it work without credit for a time.

Right now it appears credit is the only thing that is buying you food right now. If you stop paying on the credit cards the worst they can do for the most part is get a judgment in civil court. After that they can try to garnish your wages. However at your income level I don't think you make enough that they can legally take anything from you.

Good luck and if you have other questions remember there are alot of people that have been through all sorts of things and may be able to guide you through this.

[StartingOver08]

Are you a student? You would be better served by increasing your income. Are you working full time?

BK will not solve your income issues. The first thing to do is to figure out what you can do to enhance your skills to get a better paying position.

[coolman911c]

I'm sorry i forgot to include some info. My girlfriend pays for the food. Due to medical reasons we have to keep our house on the cold side and its hard in the florida heat. I am a student or was i cant afford to go right now and i work 35 hours a week. Ive tried for about a year to find better work but with no luck. All the credit cards are maxed out. so i dont know what is worce to file BK or to just stop paying the credit cards.

[OhioFiler]

that is way below minimum wage. Are you sure the numbers you posted are correct?

Are you responsible for 1/2 the rent and 1/2 the utilities or all of them and your gf pays the other bills?

What is the toal monthly income for your household?

I don't know if filing bk is a good idea to eliminate $9,000 debt and keep $5,000.

[DebtEnder]

Well ok so you have someone else covering some of the expenses then. That helps. However based on your income level I don't think there is all that much that can be done to you if you just stop paying on the CC's. Do not stop paying the student loan as they don't go away except in very rare cases unless you just can't afford it at all. Even then I'd still try to pay it.

The minimum wage is going up on the 24th to 7.25 an hour as such if you disposable income is less then 30 times 7.25 an hour they can not legally garnish your wages. Ie you will always have at least 217.50 a week that they cannot touch. From the sound of it I think your well within that limit so they can't come after you for that.

But for anyone to help you they would need to know the full picture of your finances. As far as BK goes your girlfriend helping out with food is not really need to know info but to give advice it is needed.

[coolman911c]

I only make 8/hr. The total rent is 550. My GF doesn't work but helps her dad out so he buys us food. So the household income after taxes is 860. Which pays for rent electric etc, just not food the cc and student loans, so I'm just lost at what my options are and their outcomes

[Lovesgirl]

Solution for you maybe

Contact Consumer Credit Counseling Service of Denver, CO (mine is with them and I know they are reputable). I had 41,000 of credit card debt 3 years ago and I am down to $16,000. They go to all your credit card people and make negotiations to drastically reduce your interest rates even down to like 4% and what payment per month they will accept. Then you pay the CCCS people via bank auto debit the one payment per month and they distribute it. Your credit report will show the on time and accurate payments but will show you are in a dmp. And you won't get any new credit cards or get to keep any. but it is one solution besides bankruptcy. ANd I think CCCS will take into account your income and expenses. Give it a try. The location in denver will give you a CCCS in your area. Dont just pick one out. Some are scams. Be careful and good luck.

[eddiep]

Maybe you could get a deferment on the student loans due to financial hardship, I agree with lovesgirl, contact CCCS in your area they are a great resource.