I have C.C.D. and I'm a chargeaholic - I know this now!

[mbjr73]

Hello All,

This is my first post to the forums, joined a week ago and have been researching and reading all posts and have gotten a lot of valuable information. Until today I have been unable to post, Thanks to the ADMINS for fixing this!

Let me give you some background info that has brought me to the conclusion I have C.C.D. (Charge Card Disorder).

I am currently 40 Years OLD- back when I was younger and starting out I tried to establish credit and it was hard for three reasons 1) I did not have credit, 2) Me and my dad had the same name and his credit was BAD, 3) Me and my dad resided at the same address at the time.

I was only able to get credit through those High Interest loan places, which I did. I finally was able to get credit thru the credit union of my previous employer and purchased my current residence, a vehicle and a boat. Then I got maxed out with all those High Interest loan places and got married and could not afford to keep paying debt(s) I did not want to lose my land and Mobile Home or my Vehicle or Boat.

I looked at my options at the time and discovered BK was the way to go, so I filed CH 13 BK, this was before the new rules of 2005. After the CU was paid off in the plan I converted to a CH 7 BK, which was discharged in December 2002. My credit was trashed but I could afford to live.

A couple years later my vehicle was eating me alive in repair costs, so I had to find another ride, I was able to get a loan with automobile acceptance and I paid it off as promised in the loan agreement, and I obtained a low interest loan/ mortgage and had a house built on my property in 2006.

This lead up to me getting good credit scores averaging 695-715, and started getting CC offers in the mail, so I started applying for them and next thing I know I have 5 CC which I max out in no time, so I go a High Interest Loan place (One Main Financial) and get a loan from them and pay off the CC's, then what do you know I max out the CC's again!!!!! I am a ChargAholic with C.C.D.

Now at the present I am finding myself about to be late on my first CC payment tomorrow. This past year I was able to keep things paid because were I work we do weekly ON-CALLS, and my co-workers would let me have their week(s), but this year they are reluctant to give them up and I only get 1 week every 7 weeks to make Overtime. I cannot get a second job because this one requires I be able to do my ON-CALLS when it my week.

My wife cannot work, she stays at home and takes care of our son, her working would add another Vehicle need and more Insurance for it, plus her credit is trash thanks to me maxing out what CC's she had in the past.

Sorry for the long post but I wanted to explain my Disorder.

Currently my Expense exceeds my income by $150.00 per/month. I have spoken with 1 atty on the phone, have a meeting with another next week (local) and will be talking with an associate of my Original filer back in 2000 next week or two. but I am scared of a garnishment.

Currently I have:

my mortgage ($98,000.00)I am unsure of the value of the home Tax receipt puts the value at 95,000?, and auto loan($8430.00) KBB suggested it was valued at $7000-8000 both of these are secured and I want to re-affirm them when I file chapter 7.
the others are:

Captiol One CC , Walmart Discover CC, FNBO VISA CC, HOME DEPOT CC, * One Main financial-personal loan.
These unsecured loans total around 14,250.00
All are High Interest 22%- 29% and un-secured.

The atty's I have spoke with quoted prices from $1700-1900. dollars. I am scared that I wont have enough time once I quit paying the unsecured debt, before they sue and establish wage garnishments or my bank account(s) which only have enough in them to cover that weeks bills and I direct Deposit, I have another account setup for my Mortgage.

I am trying to figure a way to save up to pay an ATTY before creditors start to sue, has anyone had dealings with One Main Financial trying to collect?

My annual income is around $35,000.00/ Year
I did the means test from a website stickied on this forum and it says I qualify.

Thanks for reading and your help!
Hoss

[AngelinaCat]

Your experience may be different, but in our case, we had about six months before two secured items--a co-signed loan for a car for an acquaintance, and a personal loan with American General Finance (now known as Springleaf Financial) secured by two older cars). These two sent paperwork notifying us that they were beginning the process to sue us.

Our unsecured CCs, about 36K on one and 6K on the other, never bothered us at all. We did write a letter to the larger amount agency trying to work out a deal where we would gladly pay the principal down and out, if they would stop the interest and late fees. That was a non-starter.

[LadyInTheRed]

Based on stories I've read here, you will probably have a minimum of 6 months before somebody sues you. It would then take at least another month or 2 before they can get a judgment and garnish your wages or accounts. You have some time.

Reconsider reaffirming your mortgage. It is rarely a good idea. Even reaffirming the car loan may not be in your best interests. Be sure to discuss pros and cons of reaffirming with the attorney you finally hire.

[TXskyblue]

I owed about 70k in credit card debt and they did not sue me in the 6 month period I went without paying before I filed.

[keepmine]

I just don't see how bk is going to help. You'll only discharge $14K worth of debt and you want to hang on to a home and an auto which total about $108K on $35K income. I assume this figure is before withholding.
Just don't understand how you can continue carry this debt load and you still have expenses like utilities and insurance, phone, food, operating cost for the vechicle and everything else it takes to run a HH.

[bcohen]

I agree with the excellent advice posted above. Unless you have super-low mortgage payments and car payments, it may unfortunately be necessary to let the house and/or car go. A gross income of $35k is not very much, and translates to a take-home pay of about $2200 per month. Also, filing for bankruptcy on $14k of debt is silly, especially since it is unlikely that more than half of your creditors would bother to sue, and it is possible that none will.

I suggest doing nothing, holding off, and seeing what happens. At the present time, with your income being what it is, I am not sure that bankruptcy would help you.

[tobee43]

i also agree with keep (do you mind if i call you keep LOL!?, i think we have known each other long enough) and bcohen, i think you can do this. i am sorry to be this blunt, but i had two kids 10 months apart (PLEASE! no comments about that ) anyway, even when our kids were born, i went back to work asap. how we did it is one of got on the night shift and the other day, that way there was no child care expenses.

i really do not understand why she cannot maybe work a part time job? i'm not trying to offend you, please. it's just i remember a time when one of us was working 3 jobs and at the same time the other working 2 jobs. for me personally for us there was absolutely NO way we could have made a good life for ourselves if we didn't both work. my kids now ask how the heck i did what i did. however, then are no different, my son's job is so demanding that we works many times 18 hour days, my daughter even though post of them have grad degrees and more, they STILL have a hard time. both their husbands and wife's work, actually my daughters husband teaches in the days and pick up bodies at night. (yes bodies! yuck).

i wish you the best of luck, but i think if it were me, i would start with the smallest CC balance and start kicking butt on it, i would pay just a taste over the minimum on all the others. once you pay off that, it will start you rolling and you'll feel so awesome, you'll get that feeling of accomplishment and you'll start a roll into a better financial future. i wish you the best on this. it's a big decision. i think you can do it.

[mbjr73]

"Reconsider reaffirming your mortgage. It is rarely a good idea. Even reaffirming the car loan may not be in your best interests. Be sure to discuss pros and cons of reaffirming with the attorney you finally hire."

Lady, I am going to discuss this with the Atty's, I have read a lot about pay and stay, but I also read that Georgia is 11th circuit and wont work if creditors complain, but I am ask about it..

Keep, you are correct the $35K is before withholding, I really do not want to lose the house, plan on living in it till I die, the payment is 777.00 and the vehicle is 238.00, Its a dependable vehicle and I need it to get to work. It is hard at times with normal expenses.

tobee, thanks for all yall's replies and I take no offense I expect people to be blunt with me, I am still weighing the options, but her working is just not possible when I am ON-CALL with work I could have to leave at anytime 24/7 for a week, we don't really have any relatives to leave my son with in that event and he's not old enough to leave at home alone.

Thanks again for all replies, I have a CC bill due today that if I pay will not leave enough for the utilities due on Friday, so it looks like I am gonna miss this payment, which will cost me a late fee and increase in the Interest rate.

I am still looking at my options until I can talk with the Atty's next week.

[tobee43]

good idea about seeing what the atty says. it's just that what you owe may seem like a ton of money in the scheme of things, but really one usually puts that trump card in their pocket until it's there one and only play. i would hate to see you use it to early.
maybe you can negotiate with some of your creditors to work out a better pay back schedule to allow you some breathing room. personally, if it was me, i would call them all and simply state it's work with me, or i have to file and you get nothing. i would say it nicely, but that would be the bottom line message.

[mbjr73]

Thanks tobee43, Yeah I heard Clark howard mention that on his show one day and I might just give it a try, it sure can't hurt.

Hoss

[keepmine]

I seldom suggest this but, prehaps see if this group can help set up a Debt Management Plan.

http://www.nfcc.org/