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Our total income is monthly $2,400. We own two old cars, a 2006 Hyundai & a 2009 Kia. No other assets. No savings, only checking. Our CC payments add up to $400 a month, plus rent & food, insurance. We have good credit, make payments on time, but its getting harder & harder as we age.

It would be nice if we could all stop paying ALL of our bills once we retire and go on social security, wouldn't it? I'd love it myself! But it's my responsibility to pay my bills now as its been my whole life prior to retirement, as it was my responsibility to make sure dh and I weren't just relying on social security income in retirement. We had decades to plan for that event, fortunately.

10k is not that much of a cc balance, in reality. If each of you took on a part time, non strenuous job for awhile you'd be able to pay it off in no time w/o destroying your ability to borrow again in the future. You may even enjoy working part time and making extra money to supplement your income.

Good luck to you.
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Reply to lealonnie1
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I hope that $ 400 a month is not the minimum payment? If so, you will never get out of debt. You need to pay more a month.

I pay my card off monthly. But in fine print it says that if I am late one month, the interest will go up to 29.9%. On 10k, thats another 3000 a year. If you are good payers, never late, I would first see what the annual % rate is on that card. Maybe you can negotiate a lower rate. Again, I may try for a loan and never use a credit card again.
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Reply to JoAnn29
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Both get a job! I live in a retirement community, and many residents work at your age. Examples: babysitting, pet sitting, walking dogs, desk monitors at recreation facilities, driving elders to appointments, recreation, airport, sitting with them after medical procedures. Caregiving, cleaning, washing vehicles, yard care, taking their pets to groomer, shopping and mailing packages for them. There is no need to be jobless when so many folks need help. Pay the debt.
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Reply to Fawnby
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KPWCSC Apr 4, 2025
Good suggestions, but I would caution anyone our age to take a job walking dogs. I love dogs and when we had to put our last one to sleep, I thought that helping others with theirs would be a good replacement without all the responsibility. A friend went out of town and I volunteered to help and it was a very well behaved dog. I got into a situation with the dog on his leash and almost fell and could have gotten hurt really bad... as the leash got twisted, it did hurt my hand.

It is one thing caring for our own pets because we know them and they know us, but caring for another's dog can create a chaotic situation when we least expect it. An elderly person could end up being hurt simply by not anticipating a certain movement or reaction.
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You can consolidate your debt in one loan. Then your payment per month will be smaller. You stop paying, your credit rating will suffer. And you will be hounded by collectors.

You can negotiate to get the amount down but you will pay taxes on the money you save. So if its 10k and you get them down to 8k, the 2k is considered income by the IRS. Weird, I know.

Call your County Office of Aging and see if they have someone who can help you work this out.
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Reply to JoAnn29
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Can you try to negotiate with the cc companies to see if they will forgive all or part of the debt? Can you consolidate your debt onto one card with the lowest interest? The downside to this is that any debt forgiven is considered as income, reported to the IRS, and you might have to pay taxes on it. However, if your only income is the SS you mention, then even with forgiven debt your income will likely still be too low for there to be any tax. And obviously you have to stop charging anything on your credit cards. Your credit rating will for sure take a big hit if you have to have cc debt forgiven, but honestly at this point in your lives and with your income, I don't see that you would or should be making big purchases requiring loans and good credit scores. If you are able to pay your rent and all other bills on time, that would help build your credit score back up again.

Any chance either of you could take on some part-time work: babysitting, Walmart greeter, cashier, etc., if you have the physical capability? I see lots of older people working these days to supplement social security. How much extra monthly income would you need to be able to rapidly pay down the cc debt and keep up with your other bills? Working might be preferable to negotiating credit card debt forgiveness.

There are community action agencies/community action partnerships (CAA/CAP) that help lower income people with financial planning and financial literacy. They provide free classes and counseling. They also administer funds for a number of programs such as energy assistance, home weatherization, and head start. Check to see if you have one in your area.

If you haven't done so already, you should also check out any state income-based benefits to which you're entitled, e.g. SNAP (food stamps), energy assistance, rent vouchers or rent-subsidized housing, vouchers for using public transportation, Medicaid to supplement your Medicare, etc. Hit up food pantries and also thrift shops for clothing and all kinds of odds and ends. You really need to do anything you can to stretch your low monthly income. And do you need 2 cars? While they are old and you might not get much from selling one of them, it would save on costs for insurance, registration, and maintenance.

I'm an AARP tax aide volunteer and I'm astounded at how people manage to live on the low cash incomes they have, but I think it's because of lot of the types of programs I've mentioned here.
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Reply to newbiewife
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Are you accumulating more cc debt each month? Can you live without using credit any more?

I put your numbers into a debt calculator: if you paid only $200 every month at 26% rate for $10K it would take 11 years to pay it off if you stopped accumulating any more debt.

If you tank your credit rating it may impact your ability to rent elsewhere as many places check this.

Make sure you get good advice. Here's the organization that Dave Ramsey endorses:

https://christiancreditcounselors.org/adwords/

I wish you success in getting your finances under control!
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Reply to Geaton777
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You can, but I would keep up with the payments if you still have credit available to use. So, in case of an emergency, you can use the card. If you are maxed out on your card though and can't use it and are just paying $400 every month that basically goes to interest on the card, but don't have much open credit available to use, I would absolutely stop paying the card. One thing to consider though: Is your living situation going to be stable? Are you expecting to be able to rent where you are for the long term? Because if you tank your credit, it will be much more difficult to be able to secure a lease somewhere else if you have to move. So, if your living situation is going to be stable, and if you are nearly maxed out on available credit on your card, yes, stop paying them. They cannot collect from you, but you will have to endure harassing letters and phone calls. (set up your phone to block or screen calls or change your phone number when this happens).
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Reply to mstrbill
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Would debt.org be able to help ?
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Reply to JudyTeen30
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Find a non-profit credit counseling agency. They frequently can help clients negotiate a reduced interest rate. Not paying these bills will damage your credit rating and your ability to borrow money in the future.
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