PostHeaderIcon I am in debt, should I ignore those creditor and collection calls; file bankruptcy; or try to repay the debt?


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I am a 24 year old in California that is currently unemployed. I am a full-time student and have less than $1,000 coming in every month. I have around $15-$20k in unsecured credit card debts that I have not payed for 6-12 months. I also have a secured car loan of $25k, but fortunately, am able to pay that every month on time. I get phone calls everyday, but have ignored all of them. Since my credit has gone down the drain, should I still ignore those phone calls and have my debt written off? Or should I try to speak with the creditor/collection agency and attempt to repay it? Should I consult with a debt consolidation agency? Lastly, should bankruptcy even be an option for me? I would be appreciative of any advice given…thank you!

8 Responses to “I am in debt, should I ignore those creditor and collection calls; file bankruptcy; or try to repay the debt?”

  • Scurred says:

    i dont think it will be that easy thats a lot of money you owe :( maybe try to negotiate with them…..

  • Gordon B says:

    If you ignore the calls someone will sue you and get a judgement against you, then they could seize your bank account or future earnings. I would either try to negociate with them or file a chapter 13 bankruptcy and make small payments.

  • pater47 says:

    Simple. Someone with no income doesn’t need a $25K car. Sell the damn car, pay your debts.

  • smartblonde says:

    TRY TO REPAY DEBT!!!!! You spent that money. You should pay it back. What do you think a bankruptcy will do to your credit score? It wont be like a clean start. The bankruptcy will haunt you for the next 7 years! Do debt consolidation if you can. Find a new job…sell your car and get a much cheaper one. You need to pay off your debt and get your finances in control.

  • angela says:

    Try to get a job and then negotiate with them. Collectors won’t care that you are not working. Their job is to get money. Ignore the calls until you can pay them something. I repeat, try to get a job so you can work on paying off your debt. My understanding is that they changed the bankruptcy laws and it’s not as easy to file bankruptcy as it used to be. You could always contact a bankruptcy lawyer and ask his opinion. A credit counseling service is an option but they won’t be able to help if you can’t make a payment to them. You might check it out though. Goodwill operates one around here. Look in your phone book under credit counseling.

  • Happy Camper says:

    If you cannot pay the minimum on the credit cards, you may have to consider a consolidation program.
    It is dangerous to risk losing a car that you need or to move into a shelter with a single suitcase. If full time work is available that would pay enough, you might take it and drop out of school for a year to get it together, unless school is on a payment schedule that would preclude that.

  • Judy says:

    Maybe you need to find a job that will get more money coming in, so you can pay down your debt. People do work and go to school at the same time, you know.

    Bankrupcy can be an option, but has long-lasting effects for you so should be a last resort.

  • J R says:

    You can’t afford to ignore the credit card debts. Chances are that your lack of payments has caused you to go into the highest interest rate level, so your debt will be increasing at an alarming rate, even if you are no longer using the cards. The banks will never simply “write off” the debt, and you are unlikely to get another loan of any kind until you have satisfied your current debts.

    Recent changes in bankruptcy law have also made it very difficult to completely shake off credit card debt. Besides, if you file for bankruptcy, your car loan must be included, so not only would you be likely to lose the car but, unless it is worth more than you owe on it, you would be out the car and still owing on that loan.

    Your probable best bet is to find a reputable consumer credit assistance agency to help you get out of this mess. They can often not only set up a reasonable payment plan, but get the creditors to either forego the interest or drastically reduce the rate. During the time you are paying off the debts, you will not be permitted to use credit or assume any new debts, but you will be in a much better position to rescue your credit rating later.

    By consumer credit assistance agency, I do not mean one of those loan companies that combine your debts and leave you with one payment which, if you read the fine print, often leaves you more in debt and paying a high rate of interest for a longer period of time. The agencies I am referring to are not involved in the lending business at all. They act as consultants only, acting on your behalf when negotiating with your creditors.

    Get working on this right now. You can’t afford to delay. Good luck.

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