If I ran up 20K+ debt on several credit cards and can't pay them ?

I am incurred debt on my credit cards of 20k+ and can't afford to pay them. My finances have changed and I really can't afford anything beyond rent, and necessities. I don't own a home or a car and have a child to provide for too. There is no money left to pay them even if I budget as I have no where to cut. I lost a job and got a new one that pays half the hourly I get elsewhere (I work many years at the other job but they company closed). My good references and experience didn't help me get better wages. I have never been late on my cards in the 15 years that I have had them. I have used them to buy clothing (lots of clothes) and for dental bills and day to day necessities (groceries, health items, etc). If i cannot pay these cards can they seize my used clothing and lingerie? I have very little valuables (no big tvs or anything) just clothes. Is there any way to solve this?

I don't have any vehicles, and live in a cheap apartment with minimal non expensive furniture (bought for cash) and almost every thing except clothing that I bought with the card I left when I moved away quite suddenly from my other place (family problems) so I don't have that stuff any more. As far as my paycheck, I read they can only take so much of that and I only make 800 a month after taxes and have a dependent so I don't know how much they could take. I have been using my cards to buy groceries only lately.

Did the Earth just shake? Something awful happened, cause we finally got a wise answer from icsowesmemoney!

Fact. You owe $20,000.
Fact. You make $800/month
Fact. If you were somehow able to find $200 in that tight budget, and factoring in interest payments, it's going to take over 10 years to pay this debt!

The other responders completely ignore your comments on the difficulty in finding a better paying job. Some day, they will lose their jobs or get laid off, and will discover this fact for themselves.

You are a prime candidate for filing chapter 7. You will not meet the "means test" because you don't make enough money to be forced into a Chapter 13 "wage earners" plan. With no home or car, you have nothing.

Check with the local bankruptcy attorneys, and you may even find a program for low income people and get a very low legal cost.

Good luck. You are in very good company. Many thousands of other people filed for bankruptcy last year for this very reason.

Negotiate a deal with the CC companies. Your goals are to freeze the continued piling on of interest and penalties, and to have a set monthly payment.

Get a better job. If you regulary paid your credit card bill...how could you get $20K in debt. DOn't use credit cards to apy for anything. With the interest amounts on them, you'll save A LOT more money if you just save up and pay in cash, then usign a credit card.

No they can not take personl items such as used clothing. If you do not claim bankrupt then in 3-4 years when you havent paid a dime towards credit card bills they will issue a judgement and that will remain on your credit report for 7 years or if you pay it off it will be released then.

What you want to do is change your spending habits, but first you need to take control of the debt. There are debt consolidation companies that help individuals take control of their debt and reduce their interest rates. You may want to consult some of them in order to get control of the debt. There are many companies out there that also charge for their services, the one linked below is one I recommend that is non-profit and can help in consulting with finances. They've helped me and I'm almost debt free.

Once you get control of your finances you probably want to live by the 80-10-10 rule or any variation that may apply to you. Basically live off of 80% of your income, put 10% away in savings and donate 10% to charity if it's an option to you. Generally it's good to have credit but don't let the credit become the debt that owns you.

To answer the last question I don't think they can reposses your goods but it also depends on the state you live in and the laws that govern that state.

sounds like your best bet is to file bankruptcy on them. they will try to seize anything they can that you bought on the cards, so it will make their losses less. but if you say you no longer have them, then they can't do much there. your other option is to go to a credit counselor. many places are free of charge, and they work with you cc companies to lower your interest rates and finance charges, many times eliminating them completely, if the creditor is sure they'll get their money. if you don't try one of these, and can't pay them, then they will come after you with judgments and wage garnishments. then good luck trying to get anything--even a french fry--financed. it's really messy. try to do whatever you can to work with them so they know you want to pay it, though. they're more likely to try to work with you, as legal expenses cost them a lot too. good luck!

go bankrupt

There is no way to solve this situation that you're probrobly going to like. If you have cut back truely then you CAN AND SHOULD STOP using the cards. Find a second job so that you can go into repayment for what you've already borrowed. No personal items such as clothing cannot be seized. Consider having a big garage sale to sell off some of the items you purchased. Use the proceeds to offer settlements or pay off the debts. If you are unable to increase your income talk to an attorney about bankruptcy. Good Luck

They can't take personal belongings. They only take things that they can sell at an auction for alot of money. Like vehicles, lawn mowers, 4 wheelers, etc. They could start taking money from your pay checks tho.
Good Luck.

go to www.takechargeamerica.org.
they are a debt management company, they can help you with a budget and ideas. even if their program wont work for you they can give you some real numbers to take for other services. I would also contact the state and see if you qualify for rent, utility, day care, and food assistance.

Ooooooooh, lordy. That is so depressing. I know how hard it is to pay off a credit card, and at $800/mo you'll never do it. Here are ideas: 1. better job. 2. stop using the cards. 3. why isn't your child's father paying support????
4. With that much debt, you should visit a bankruptcy attorney. 5. Even if you file for bankruptcy--and you should consider that--the interest alone on a $20,000 credit card debt will be $2000 per year or more, and you need to develop a budget and stick to it.

Sooner or later you will get sued by the credit card companies. They cannot seize your property, until after they sue you and get a judgment against you. It's highly unlikely, though, they would try to seize personal property of minor value as the auction price would not be worth the bother.

I rarely say this, but it looks like a Bankruptcy is in your near future. If you have nothing they can take nothing. Then may ask you at the 341 meeting of creditor what happened to all the things you charged but that is it.

There is a reason that the Debt Relief (Bankruptcy) laws were invented. For people that had a stable situation and have now been pulled from it.

I would consult an Attorney in your area and look at maybe filing a Ch 13 or as a last result a Ch 7.

It will take years to rebuild your credit and you will pay higher interest rates on any can or home loans that you take out in the future, but it will get better.

I sure hope that you learned from this. Even if you have a great job it is best not to live beyond your means. that is a lot of Credit Card debt. i may advise that when things get better that you limit your spending and only buy what you can afford.

Good luck!!