How to get by on $698 a month??

[LIT LOVE]

And those that choose to work under the table, or at jobs where they're tipped heavily, are not doing themselves any favors!

The one small thing I will disagree with finz about, is that SS is a much better "investment" than traditional insurance policies. Our benefits are not paid out of savings, but come from the contributions of those that are still working.

It is not uncommon for people that retire, to have to sell their homes and relocate to less expensive areas, or have to take out a reverse mortgage in order to be able to stay in their homes. When my grandfather passed away, we had to make a very tough decision, to sell the home he had built with his own hands, so that my grandmother could afford the best care during her remaining years.

[LIT LOVE]

Originally Posted by Babyboomer15

I filed about a year before I became disabled. I was awarded SSDI about 18 months later.

Why would it be different on SSDI? Its looked at as the same. If you don't pay your CC bills it goes against you on your credit report, bankruptcy or not.

BK lasts for 10 years, negative credit history for 7 years, on Credit Reports. There is also the expense and time spent with the BK process. I'm not claiming it's not a valid option for some, it just isn't necessary for all. AND, it's not exactly uncommon for people to spend their backpay on debt that's out of statute of limitations, which ironically, adversely effects their credit scores, because it reages the debt.

[Babyboomer15]

Originally Posted by LIT LOVE

BK lasts for 10 years, negative credit history for 7 years, on Credit Reports. There is also the expense and time spent with the BK process. I'm not claiming it's not a valid option for some, it just isn't necessary for all. AND, it's not exactly uncommon for people to spend their backpay on debt that's out of statute of limitations, which ironically, adversely effects their credit scores, because it reages the debt.

If you stop paying CC bills while on SSDI or SSI,don't the creditors still sue over unpaid debt or do they forgive the debt. Usually they drop the bottom out of their high interest rates if they think you're going to file bankruptcy.

[finz]

Because if you are on SSI, not SSDI, you have no assets (or VERY little in assets) and only $698 a month income. You wouldn't be eligible for much in credit anyway, so a bad credit score can't really hurt you. There's no money stash for creditors to sue you for. Creditors CAN'T get the $698, they can't take away your foodstamps. They can't take away your free/discounted heating oil, etc......and in years the 'bad credit' rating would fall off

[finz]

Originally Posted by Babyboomer15

If you stop paying CC bills while on SSDI or SSI,don't the creditors still sue over unpaid debt or do they forgive the debt. Usually they drop the bottom out of their high interest rates if they think you're going to file bankruptcy.

I don't know that creditors 'officially' forgive the debt, I think it's more that they see the futility of spending good money for their legal team to go to battle and not be able to get much of a return.

You know the old saying, "You can't get blood from a stone" ?

[LIT LOVE]

Originally Posted by Babyboomer15

If you stop paying CC bills while on SSDI or SSI,don't the creditors still sue over unpaid debt or do they forgive the debt. Usually they drop the bottom out of their high interest rates if they think you're going to file bankruptcy.

They can sue you, and receive a judgement, but they can't get any money out of an account with SS funds. This doesn't mean someone can commit fraud--run up cc debt and plan to default since they're on SSD. The more likely scenario, is that a person defaults while waiting for SS approval. The creditors won't forgive the debt, but once the statute of limitations expires, they can no longer receive a judgement. The higher the debt, the more likely it'll be pursued. Collection Agencies will keep trying to collect well after the SOL, and sometimes even after debts fall off credit reports. They pay pennies on the dollar from original creditors and often violate state and federal laws.

[Babyboomer15]

Originally Posted by finz

I don't know that creditors 'officially' forgive the debt, I think it's more that they see the futility of spending good money for their legal team to go to battle and not be able to get much of a return.

You know the old saying, "You can't get blood from a stone" ?

What about the 20 percent owed on Medicare. If you have a costly operation and owe 10 grand afterwards,do they forgive that also,if you don't pay?

[ginnie]

Yep, I can't pay the 20% of what medicare does not cover. Most specialists do not accept medicaid. I am not sure that current needs for surgery can be addressed because of this. Run up a credit card? I don't think it would do much for my mental health. My credit score I worked for. Getting disabled does ruin it, even if you never are late on a bill. I don't live over my means for sure, and have to sell my home for all the reasons mentioned. ginnie

[finz]

Originally Posted by Babyboomer15

What about the 20 percent owed on Medicare. If you have a costly operation and owe 10 grand afterwards,do they forgive that also,if you don't pay?

People on SSI have Medicaid....the operation is 100% paid for

[LIT LOVE]

Originally Posted by ginnie

Yep, I can't pay the 20% of what medicare does not cover. Most specialists do not accept medicaid. I am not sure that current needs for surgery can be addressed because of this. Run up a credit card? I don't think it would do much for my mental health. My credit score I worked for. Getting disabled does ruin it, even if you never are late on a bill. I don't live over my means for sure, and have to sell my home for all the reasons mentioned. ginnie

Let me be clear, the discussion was not to suggest anyone run up cc's purposefully and then default.

Being disabled has no effect on a credit report and/or score. The danger period is generally when there is a drop in income or no income, while waiting for approval.