Ask Terry Questions credit card and medical debt

credit card and medical debt

By Terry Savage on November 09, 2017 | Credit/Debt

Good afternoon, I need help managing my debt (don't we all). So here is the issue. My husband and I, mostly I have racked up credit card debt in access of $40K. Since my minimums are so high, it is hard to manage the payments and have any money left for necessities such as groceries and utility bill payments. Then, last year I was afflicted with a medical issue which caused a LOA from my employer. When I returned to work in Feb of this year, my status changed from FT to PT and I now only average 30 hrs per week instead of 40. I also have not had any extra money after making these payments to put towards the medical bills and those have gone into collections. How do I get out of this mess?

Terry Says

You immediately contact the National Foundation for Credit Counseling at 800-388-2227.  That will automatically connect you to the nearest local office.  You can trust them not to lead you astray!  Follow their advice.  They will review your entire financial situation and help you create a budget (at no cost, or very low cost).  And, if necessary, they will help contact your creditors to get interest rates lowered and work out a repayment plan.  The latter will be reported on your credit report -- but nothing is reported if you just talk with them.  They will do it over the phone, but I always recommend an in-person visit.  Please let me know what happens!  



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