debt help

[mandy7181]

What is the name of your state? georgia

Can anyone advise me on this situation? My husband and I are so far in debt--Walmart turned us down for a card... Between the two of us we make just enough to pay our bills. We are on food stamps and medicaid. I want to clear up my credit but i dont know where to start. I already paid off two creditors but medical bills and a credit card from 2000 are still on both of our credits. The medical bills are from before we got medicaid. Can anyone explain the difference between chapter 7 and chapter 13 bankruptcy. We own nothing of value....our only car is worth 150 dollars and we rent. I want to get our credit up high enough to eventually be able to get a place of our own. Any ideas??????

 

[James48]

Rather than bankruptcy, Id try and work out a payment plan with your creditors, if that possible on your side?
"Most" Creditors will try to work with you if it means getting their monies.

 

[Jeter]

What you said about Walmart doesn't necessarily apply. A person is most likely turned down for a credit card because they are a bad credit risk, not because they are a great credit risk with a lot of debt.

Before discussing bankruptcy, how much debt are you talking about?

Jeter

 

[mandy7181]

the total debt is around 5000 dollars....Im trying to work things out with the criditors but most of them want outrageous monthly payments----50 dollars a month is hard when you have to rely on the government for help with food and medical care...if it wasnt for Walmarts awesome price on diapers i dont know what i would do.

 

[Jeter]

In reading your original post again, you stated that you wanted to clear up your credit and be able to get a place of your own. A bankruptcy will not only ruin your credit but stay on your credit report for 10 years.

I suggest contacting your state Credit counseling service. They can reduce your monthly payments as well as the composite interest rate for your debt. It's a 3-5 yr plan that will help you pay your debt in full. They can also work out a budget to help you manage your other monthly bills as well.

Jeter