I gravely gave into credit card debt after a divorce 5 years ago and thought I would pull out of it, then the price of gas and groceries during the last 2 years have put me over the edge. I am now looking at bankruptcy after defaulting in November on 3 credit cards with 20,000 in debt. I am self employed and had 2 clients in August and September Breach their contracts. My business reciepts fell to zero in October. This is a first in 20 years. I have always been a person who only buys based on need. I do not own any high end T.Vs or other amenities other than basic household goods.I have helped numerous people in times of need and never thought I would be at this point in life where I dont know what will happen next week let alone next month. I mailed a letter to the credit card companies asking for a 3-6 month stay in order to find a job (seems impossible) and hope that business turns around. My business is service related and the first to be junked when people are feeling the money pinch. The credit card companies are seemingly unjust in that I have nowhere else to turn for a bailout. i am someone who pays their bills, and admits to fault. What is someone going to do when they have been credit worthy and timely in paying their bills when a company will not recognize you in times of crisis, but they go to the government to meet their crisis, with bailouts and hand outs. All I want is 3-6 months to deal with this, no free ride , no free money, I have worked since age 13 and am now 50. Why do they not wish to recognize that they are better situated to help me now when I helped pay their employess and helped their business grow during the last 30 years.

Any money received from the stimulus plan will probably go the paying credit card debt. People who lost their houses, I am sure are neck deep in credit card debt. Once you lose the house, it is easy to file for bankcrupty. So the loan sharks (banks) will go after the people who still have some assets left and raise their interest rate from 29% to 38%. Since banks are under FDIC control, they can erite off the credit card defaults and get bail out money. But the credit card debt of their customers do not go away for 7 years. The accounts are sold to crooks and lawyers for collection. These debt collector make the debtors life a living hell.

May be anyone who is neck deep should file for bankcrupty as soon as possible. The government should clampdown on these mafia like interest rate. That way it will be easier to pay off the debt. If a bank writes off the loan, that loan as an expense should be cleaned off the slate. The reason we are in this mess is self evident. Our economy sucks. And real wages have not changed since 1995. I remember in 1995 the senior level engineer's salary was about $60K. Today it is about $65K. But cost of healthcare and everything else went up several times.

In 2008, we lost 2.6 million jobs for which the records are kept. Assuming the number is more like 3 million, where do you think they got the money to survive while looking for another job? And they are still looking!

Most people get in to bankruptcy because of credit card debt where the card company hires a lawyer and sues you for the total money. The reason most people default in credit card debt is lack of income to cover the expense after the loss of income. But unless you get your income back, it is impossible to juggle those credit cards more than 6 months. As our economy fell off a cliff, now more income is impossible. Therefore bankruptcy is the only option. Forget your pride, save yourself, the government wont. Oh, BTW, the reason you lost your income is because of our trade policy where we import almost twice than we produce. How do you expect job growth except Lawyers and repoman.

That is awesome. I still have one, it is paid off. I just keep it to build my credit. I pay cash for everything. I got my last car at an auction, paid $900 for it - it is in great shape. If we as a nation would save our way out of this recession, rather than spend, maybe there can be hope for the country.