woe.

[valis2]

So I checked back on the loan, and the amount I'm approved for won't even make a dent in my credit cards. Worse, the payment for the loan would be slightly more than what I pay as a minimum payment on the one card I'd be able to get rid of with the loan.

I am well and truly up against the wall, my friends. I think I'll just be able to get through the next few months by the skin of my teeth--but my long-term plans are screwed. I've had to charge a lot of things this year, and it's now catching up with me.

The original credit card debt was from starting a business over ten years ago, and it smarts because much of what I bought in the beginning wasn't good merchandise. Now that I know what to buy and have a great source for closeout merchandise, I'm tapped for funds. I had paid off about one-fifth of my balance, and hadn't charged a thing until last year. Now my balances are higher because of the Big Trip earlier this year and the previous year, and a bunch of other stuff, too. I have paid a bit extra on it over the year, but not enough.

I was hoping to make a big dent in my cards from the fall season--but that didn't happen, because I underperformed at all shows. I think I was just above breaking even. I know there's a market for what I have, but this is getting ridiculous! I have some ideas about what I've done "wrong," but still, I'm just not certain what to do next.

Even worse--I'm in a vicious cycle as far as paying for shows, too. Only one show promoter I know accepts credit cards, and their shows were the ones I pinned hopes on and was disappointed. I have to pay for two shows (from different promoters) for next year, and I'm scrambling to come up with the cash. I have bills waiting, too.

I also have to pay sales tax for the blergh shows and my MI sales tax, too.

I hope beyond all hope that I've lost enough money this year that the government will not require taxes paid. I just can't take that on top of everything else--not when I've just paid off the 2006 taxes two weeks ago.

Yeah, I know, it could be a lot worse. Seriously. But that doesn't erase the huge load of worry I've eased myself into over the past two years.

Comments

[tudorpot.livejournal.com]

I'm sorry things are so bad. My finances are in a mess due to ill health and recent shortages of work. The plan is to find a new job in the New Year, I'm hoping for something I can do from home. I've cut my expenses back as far as I can. Have you considered bankruptcy? It might be an option.

[gina-r-snape.livejournal.com]

Oh geez. That sucks all kinds of ways. :-(

Are you operating under the same business or a different one? Because if you are paying loans on a business that's officially folded, you could file bankruptcy (chapter 11 I believe)

[ms-hecubus.livejournal.com]

I know how it feels to be sinking under credit card debt and not be able to catch up. While I can't offer you any solutions I feel for you.

BTW, I've been curious for a while to check out your ebay stuff. What's your name on there?

[rook543.livejournal.com]

also consider the interest rates. If you can find a loan with a realtively low interest rate, and even better, one where interest is tax deductable (like a home equity line) what you would be doing is trading HIGH interest debt for LOW interest debt!

[ook.livejournal.com]

I just had to put a huge car repair charge on a card that I'd just paid off. Fortunately, I was able to get them to drop my rate by 4% before I did it.

[bat-git.livejournal.com]

I would NOT file for bankruptcy. You do have the option to wheel and deal with your credit card. As long as they can see on-time payments, even if it is just the minimum payment. The credit cards want you to pay, and you obviously want to pay them off. They will work with you.

As far as the gov. and the income tax thing. It sounds to me that you might get a pretty hefty refund if you can write off your business expenses.

As they say in Master and Commander, "HOLD FAST!"

[mysduende.livejournal.com]

ooh, but filing backruptcy ruins your credit. It may be the easy way out but in the long run it takes forever to recover from the stigma of filing c11.

I'd recommend going to a credit counciling place in NY to see what they can do. A lot of times they can help consolidate the debt, obtain the lowest possible interest rate and talk to the credit card companies to lower the monthly payment so she's not obligated to pay a high amount each month but can if she wants to.

[mysduende.livejournal.com]

Oops. my bad. I'm thinking of you, Gina. Not NY. Valis is in what, Michigan is it? A Fellow Michigander.

[valis2.livejournal.com]

I really don't want to do bankruptcy, honestly. I know that I can dig myself out of this hole. It's just that so far my plans have all kind of slid out from under me or not performed as well as expected. :(

Hope that you are able to find a great job!

[valis2.livejournal.com]

My business is still operational--I'm not ready to give up. And I would really hate to file for bankruptcy. I just have to figure out a new plan, but honestly, I'm getting sick of new plans. I want one of them to work--and I want to actually act on it and follow through, too. heh.

[valis2.livejournal.com]

Thanks, sweetie. I really appreciate the sympathy, seriously.

[mysduende.livejournal.com]

Here's another thing you can do, Valis: You could put as much of the debt on one card that has the lowest possible interest rate - however much credit limit they will give you.

http://search.yahoo.com/search?ei=utf-8&fr=slv8-msgr&p=low%20interest%20rate%20credit%20cards&type=

If you make your payments on time, they should be able to give you a decent amount 4.99% and lower is not unheard of if you're good with your cards. But 7.99% is a lot better than say 10% or up. Then you can take the rest of your debt and go to a credit union and put that on a personal loan. Another thing you could do is if there are cards trying to entice you with 0% or 1.99%, you could stick as much on each of those as the credit limit will allow and set up automatic minimum monthly payments for each.

You may have already considered things like this but just throwing out some ideas. I'm in some debt too from self employment that didn't pan out the way I hoped so it's definitely a challenge to figure out ways to be creative.

[valis2.livejournal.com]

1) I don't have a house. I have absolutely nothing to offer as collateral, either.

2) I tried getting a loan. Best they could offer me was too small to help. I totally understand the change in interest and what it means, but the problem is my monthly payments would be HIGHER, and I absolutely can't deal with that right now. I need to lower my monthly payments.

[mysduende.livejournal.com]

Here is one of the credit counseling organizations I mentioned. There are many out there though and they're there to help in situations like this.

http://www.careonecredit.com/

[valis2.livejournal.com]

That's another thing I worry about. Any sort of emergency is going to wipe me out. *cringes*

Good work on getting the rate lowered!

[valis2.livejournal.com]

I'm really not wanting to file for bankruptcy--I don't think that's a good course for me.

I've been thinking about calling up the different credit cards and seeing if they can offer anything at all.

As far as taxes, I'm really crossing my fingers--I think I have enough expenditures that I won't owe anything, at the very least.

[valis2.livejournal.com]

Thanks for the help, sweetie, I really appreciate it. I've tried getting new cards before, but that doesn't seem to work (my apps get rejected, and I don't want to try too many times because that shows up on your credit record). Half of the cards are closed, so I can't (and shouldn't) add to them. The other half aren't much better. They're open, but the interest rates are similar.

I've considered balance transfers before, but it hasn't worked out well. I'm going to take a hard look at the cards I have over the weekend. I've lined the statements up and I'm thinking that there must be some way to change things around.

As far as personal loans go--check out the first paragraph of my entry--it was a dead end.

Thank you so much for the different thoughts--honestly, I appreciate it very much. Any advice helps.

[mysduende.livejournal.com]

No prob, m'dear. :) Yes, if you get rejected, definitely just look at the few cards you have, call them up and ask them to work with you. If they aren't helpful, the credit counseling can intervene and speak with your credit card companies.

I knew you were applying for a loan but wasn't sure if it was a credit union. They're usually more lenient with approving.. is that who you applied with? Sorry, I've been skimming LJ lately.

[valis2.livejournal.com]

No worries, I forgot to put in the pertinent details.

Yeah, it was my credit union, and I've been a member for ages, so I'm pretty bummed.

[parseltonguepen.livejournal.com]

My hubby and I just went through a Financial Peace Seminar. We're making do on 20k a year and making house payments and paying off student loans, so things are awfully tight. However, the seminar has helped IMMENSELY in dealing with loans, debt, the best places to go to make the most of the money you have. Even better, the CDs we got to listen to the lessons again at home we can copy and share so long as we don't charge for them!

They are from a Christian perspective, but that doesn't make the advice in them less sound - in fact many would argue it makes it more sound. The guy who does the seminar - Ramsey - has gone from rich to bankrupt to rich again. Would you be interested in the CDs?

[todayiamadaisy]

Oy, that's rough. Fingers crossed the new year goes better.

Sites like Get Rich Slowly have lots of advice on dealing with credit cards - that article turned up on my feed reader this morning.

[valis2.livejournal.com]

Wow, 20K?! Holy cow. I can't even believe you're managing to get through things.

Thanks for offering to share them, that's so sweet, but fortunately I have my sister to talk to. She's an accountant, and I think I'm just going to talk to her at length and get her input on what to do next. :) *hugs*

[valis2.livejournal.com]

Oh, thanks so much for the link! I'm hoping that it goes better, too, and I need to get off my butt and really start making things happen.

Tomorrow, lol.

[droxy.livejournal.com]

Cut up the cards.

[artystone.livejournal.com]

I agree with the suggestions of contacting a credit repair/credit counseling service. THEY do the negotiations with your creditors FOR you. You work out a plan and in a lot of cases, you pay THEM and they disburse the money as per the agreement. There are many to choose from, do some research in your area.

And yeah, cut up the cards. Maybe keep ONE, in a LOCKED drawer for real emergencies only.

*hugs*

[valis2.livejournal.com]

I've already been through that process--I didn't use the cards for ten years, and managed to pay off about a fifth of it. In fact, three of them are still "cut up," closed, etc. I'm not charging consumer items, but rather hotel rooms, food, travel expenses, show fees, etc.

I would have paid off what I had charged earlier this year, but I took a gamble and used that money to purchase more merchandise instead (there are a lot more issues involved with that decision, but I'm trying to simplify it), and that's what I'm living with--my business did not do what I'd hoped it would do this fall.

[valis2.livejournal.com]

I'm going to talk to my sister and see what she says--also, I'm going to try to call the credit card companies and see if they'll reduce their interest rates. It's worth a try.

:) Thanks for the advice.

[privatemaladict.livejournal.com]

That sounds extremely frustrating and scary. I guess that's the trouble with running your own business - you don't get the security of a regular slary. I hope things pick up for you next year!

[valis2.livejournal.com]

Yeah, if I could budget, this might be a little easier--but it's hard to budget when the figures are so nebulous, y'know? *hugs* Thanks, sweetie!

[josee-madalia.livejournal.com]

I know I don't know you much, but have you considered debt consolidation? That would bring all your seperate payments under one big payment, with much lower interest (I believe it's around 9%) than what you could pay if you leave it all on your credit cards (18-19%)

Good luck with that

*hugs*

[valis2.livejournal.com]

Aw, thanks! I always appreciate advice.

My problem with debt consolidation is that I've heard that it is more damning on your record than bankruptcy--so I'm going to try the usual suspects first, I think.

;) Thanks, though!

[gina-r-snape.livejournal.com]

I don't blame you. It sounds frustrating!