Linda and Joe are retired but are still working part time jobs at Walmart and the local book store to help pay off their debt. Unfortunately, after paying off their bills each month they are having a hard time making ends meet, as they are continually faced with unexpected medical bills for Linda’s on-going treatments and random natural disaster expenses. Just recently, they experienced a Hurricane where they had to pull out a loan to pay for damages. Since then Joe has accrued old collection debt and has now fallen 2 months behind now.
Total Income: Combined SSI (1500+1600) + Combined Part Time Jobs ($2000) + (reduction in disability income) ($0): $5,100
Total Accounts: 8
Credit Score: 580 & 610 (below poor+ collection debt)
Credit Utilization: 70% (almost maxed out and paying high interests on debt)
Spending: $2000 in monthly payments. High interest rates between 24-50%