I became unemployed in January and lost my insurance. I have a Wells Fargo credit card. I owe $3,600 and just received the letter of upping my interest rate on all of it. What happens to me if I choose not to pay on this anymore. I am 60 years old and will probably not have to worry too much about credit anymore. I have a checking account with them with direct deposit of my unemployment. I am going to be done with unemployment in January and I don’t know how to keep paying this bill especially when they are raising the rates.

Thank you

First of all I have written to you before and have found your advise very useful, and actually most of the advise you gave me actually worked so thank you for that.

My husband and I are in a lot of debt. I have already called most of the credit cards and reduced my APR to 6 % or lower. But since we are already in so much debt it is getting increasingly difficult for us to make our bills every month.

There are few facts I want to bring to light.

1 We bought an apartment last year in which we invested a lot of this debt. The apt at this point is a little bit more but not a whole lot. We tried refinancing but since this is a co-op we cannot go under the FHA program and the equity we built is so low that doing a home equity loan is not possible as well.

2 At the same time period we also bought a business and since had already invested a lot of the money at home had to pick some on our credit cards which put us in further debt. The business due to economy and other reason did not do well. At this point we have almost closed that company and partnered with some one else to keep the business afloat.

Here are my questions for you:

1 I would like to pay all my cards, and I think that we can remove most of our debt in the coming 5 years. Is it possible for us to call the credit cards and request them if they can help us and somehow hold the account for 3-6 months. That for us would be a perfect solution cause by that time we would find other means to increase our income which we are looking at very positively at this point of time. How would that effect our credit score and the APR they offer us after the time period elapses

2 Should we declare bankruptcy for the old company. How will that effect my husbands credit. and even though my name is not in the company will it effect mine.

3 If we choose the option of declaring personal bankruptcy which truly will be our last option can we keep both our credits separate some how. If we separate our names legally from most credit cards is that something doable. Also in that case do we fill for separate taxes in this coming year.

4 I have read a lot of your website and found contradictory information as in, there are areas where you say that bankruptcy is worser than going to a credit counseling agencies and other areas where you say otherwise. I would like a clarity on that.
Thanks
For taking the time to read this
Surbhi