SMARTFINANCESOLUTIONS.NET - What Should I Do ...?

Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - What Should I Do ...? - I had credit cards with low balances and went through a hard time where I couldn't pay them. I was a single mother of 2 teens and as anyone would, I focused my meager income on making sure I had a roof over my kids' heads and food on the table rather than paying off the credit cards. In all seriousness, if I could have afforded to pay them, I would have. When I finally got myself somewhat stable, I contacted the creditors but they said my accounts had gone to collections and wouldn't let me pay anything on them. The debt collectors started contacting me. At first I tried making arrangements to pay with them, but they always said if I'd just pay $10 today we could work our payment arrangements. Then when I'd ask what the arrangements would be, they would say I'd have the pay the remaining balance the next week. Not having any savings and still having household bills and children to care for, I said I couldn't do that. We went round and round about it constantly and eventually they quit calling. Fast forward 5 years and now I have one creditor who is suing me and the others have started sending letters again. I'm not at all opposed to paying what I owe. I'm not much better off now than I was back then. Life has been really hard and I have no savings and don't own anything except my car which is on the verge of breaking down. I've got a job, but it doesn't pay much. I would love to be able to get a loan to pay off the debt (which all total is under $10,000 including all the penalties and interest they say I owe), but with bad credit and no collateral, I can't. Does anyone have any ideas? I don't know anyone personally who would have that kind of money to lend me. I'm not willing to do anything illegal to get it and my health isn't the greatest...I suffer from migraine headaches and frequent bouts of shingles because I'm always so anxious (which is usually about once every 6 weeks). A second job isn't an option at this point (even assuming I could find a second job in this economy). Does anyone have any ideas or know of any lending institutions that would lend to someone in my situation?

NOTE: If you are going to suggest bankruptcy, please be specific about what is involved and whether my car (a 2003 with nearly 150,000 miles) which is paid off would be fair game to a creditor. -