Since a "credit crunch" is happening now, how many people can't afford to pay their credit cards anymore?

Question

Do you sacrifice other bills (not pay them) in order to pay on your credit card debt. Or do you let them charge off and go into collections?

Answer 1

You create priorities.

Secured debts, your home, helocs, car should be priorities.  You need a house to live in, a car to go to work, etc.  Credit card is unsecured.  Sure, they can sue you but the most they could do is put a lien on your house or garnish your wages, if they even go that far.  You may want to try Consumer Credit Counselors to see if they can help you pay the debts in a timely way.  They can negotiate with banks to lower interest rates, even forgive portions of the debt.

Answer 2

Or you cut down on your expenses and try to get out of debt. Credit crunch or no credit crunch, those who live beyond their means will always get over their heads. These days its worse simply because with lack of income, there is a lack of payments thus more defaults. Some defaults are always legitimate like loss of jobs, others is simply being too over your head.  

Answer 3

How about living with no debt and paying cash for everything, www.daveramsey.com.  I haven't experienced a "credit crunch" I'm not struggling to make payments, and I'm in college and only make 15,000 a year.  And my bank just offered me a 50,000 personal loan, that I wont take because debt is stupid, credit cards are stupid, and a freaking car payment is stupid (a car payment in an average mutual fund for 40 years will be over 5.5 million).  It's called budget, pay the house payment first, utilities and food, and save the rest.  

Don't cry about not able to afford CC payments when you have the Premium cable package, go to Starbucks twice a day, and have a house you couldn't afford when you bought it with a sub-prime mortgage that shouldn't have been given in the first place, especially when the housing market was obviously over-inflated.  But luckily for me I'll get a great deal on a house now with a 15-year fixed which I'll pay off early and save over $40,000 in interest charges.  

Answer 4

my problem is running outta $$$ trying 2 pay every 1 else, & my own needs go unmet. i must learn 2 pay myself 1'st THEN others. sometimes w/ ME anyway, i'd try paying every 1 else & run outta $$$ trying 2 pay & I had 2 many going & had more 2 pay than my paycheck would cover. this very reason is y i needa learn 2 pay myself 1'st.

Best Wishes!!!