Struggling with credit card debt… any advice?

Hi everyone,

I’ve been living paycheck to paycheck and lost my job in September. I was lucky to get a new job in October, but now I’m behind on my credit cards.

I have a Rooms To Go card, which they canceled when I told them I was out of work. I also owe on Wells Fargo, Apple, and Discover cards.

I’m managing rent, car insurance, and internet bills, though I was late on those too. Thankfully, they were more understanding. This is the first time I’ve ever been let go from a job and the first time I’ve been late on payments.

I think I can start tackling the debt in January. Should I cancel the cards to avoid late fees and more interest? I really appreciate any advice you can share.

Canceling the card won’t stop late fees or interest. You still have to pay what you owe.

Tate said:
Canceling the card won’t stop late fees or interest. You still have to pay what you owe.

Why is that? I’m asking because I don’t understand much about how this works.

Frankie said:

Tate said:
Canceling the card won’t stop late fees or interest. You still have to pay what you owe.

Why is that? I’m asking because I don’t understand much about how this works.

The fees and interest are part of the agreement you signed when you got the card. Canceling doesn’t erase what you owe.

Canceling won’t help with late fees. You could ask about a hardship program. Some companies waive fees if you agree to close the card, but it depends on the company.

If you plan to pay it off, ask about hardship programs. Otherwise, keep the cards open and pay what you can. Closing the account could hurt your credit more than being late.

Bailey said:
If you plan to pay it off, ask about hardship programs. Otherwise, keep the cards open and pay what you can. Closing the account could hurt your credit more than being late.

Thanks for explaining that!

Try negotiating a hardship plan. If you close the accounts, the late payments will still show on your credit history. Keeping them open and paying when you can might be better in the long run.

Mackenzie said:
Try negotiating a hardship plan. If you close the accounts, the late payments will still show on your credit history. Keeping them open and paying when you can might be better in the long run.

Thanks for the advice!

Have you looked into non-profit debt management programs? They can help negotiate lower interest rates with your credit card companies. Some programs may require you to close your accounts, but they can help you pay off the debt faster. Be careful to choose a reputable organization, and don’t pay for services upfront without checking their credentials. Good luck!

@Hadi
I really appreciate this information. Thanks for helping!

Frankie said:
@Hadi
I really appreciate this information. Thanks for helping!

You’re welcome. Hope it works out for you.

Most credit card companies have programs that can help if you lose your job. Try calling them again and explaining your situation. If you’ve been a good customer in the past, they might work with you.

Parker said:
Most credit card companies have programs that can help if you lose your job. Try calling them again and explaining your situation. If you’ve been a good customer in the past, they might work with you.

I told them I was out of work, but all they said was to let them know when I find a job. They’ve been calling me nonstop since.

Canceling won’t stop interest or fees. If you’re really struggling, consider talking to a bankruptcy trustee about your options. It’s a tough step, but many people have started fresh this way.

Cut up your cards and don’t use them again until you know how to stick to a budget.