Financial suicide or a wise option?

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Re: Financial suicide or a wise option?

Unread postby americandadof5 » Sun Oct 08, 2017 9:50 am

Contact the banks that own your cards and ask for the departments that handles collections aka financial hardships. Speak to the reps and explain your financial situation and agree to close the cards if they are willing to drop the interest rates and you pay within 5-6 years. Sometimes you have to miss a payment (by one day) and then call.

Litigation caused me use to my credit cards to pay attorneys fees which was way more than than i can afford in monthly bills. On 4 out of 6 cards that I had/have, im now paying 0 interest but im paying equal payments of $$ for the next 5 years which is $20-$30 less than what my monthly minimums were on the cards.

I did this with:
Citi
Chase
Walmart/Synchrony
Discover

check this site too NeedHelpPayingBills

the advise to grab all the credit you can may not be a bad idea because if you take the advice regarding the hardship programs, the closed accounts will equal high card utilization
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Re: Financial suicide or a wise option?

Unread postby Campfire » Sun Oct 08, 2017 9:59 pm

TJinCA wrote:
Campfire wrote:If you're considering stopping payment on the credit cards, why not stop paying the mortgage?


Maybe because the credit card companies won't come and take your < feces >, but the mortgage lender will come and take your house and if you stop paying rent the landlord will kick you out.

To OP, it doesn't sound like you've got any great options but stopping payment on unsecured debt (credit cards) and hoping to clean that up later may be the best one. Among other things, simultaneous divorce and BK is not a good mix so you wouldn't really be able to do the BK until the divorce was done--and it doesn't sound like you've got that kind of time.

If you've got the divorce papers filed, she's moved out and has resources and you have the kids, get her tagged with child support ASAP. She's as responsible as you are for keeping a roof over your kids' heads and food on their table.



I didn't realize the OP was renting. Stopping payment on the mortage is a solid strategy as foreclosures don't happen overnight. Due to the OP's wife having a wealthy family, I assumed there was a mortgage involved. Stopping payment on the mortgage affects the wifey's credit as well #leverage.
The List: http://www.dadsdivorce.com/father_divor ... hp?t=13374


The question is how much conflict you can control, negate, or avoid.
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Re: Financial suicide or a wise option?

Unread postby Campfire » Sun Oct 08, 2017 10:11 pm

TJinCA wrote:At first the notion of getting more credit cards when you know you're in financial straits sounded to me like terrible advice, but given desperate times it's probably not a bad idea to get as much credit headroom as you can before your credit rating heads south and you become ineligible. And hope that you can get financially stable (through support and/or employment) quickly enough that you can make everybody whole within a reasonable period of time.



TJ,

It's not about credit "headroom", it's about cash. Once you start defaulting on your credit cards, things are going to freeze up. Stopping payments allows you to hoard cash. Taking out cash advances provides an additional buffer.

Don't worry about financial stability. Worry about fighting for your children's rights. The financial issues can be resolved later on after divorce when you actually know your obligations.

Tom Kirkpatrick has graciously joined your thread. His advice was key to my fight. What I mistakenly thought was that he was providing glittering generalities during my divorce. He wasn't. In fact, he's giving very pointed advice. Financial austerity is key. Seriously think about what he's saying and if your are still confused, ask.

Can you move to a cheaper rental? Leases are not written in stone. Landlords can be very understanding if you bring them into the conversation. I'm assuming you've cut out any expenses not related to food/rent, correct? Food pantries do not ask about income.
The List: http://www.dadsdivorce.com/father_divor ... hp?t=13374


The question is how much conflict you can control, negate, or avoid.
Campfire
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