Really need some guidance here. I’m not really sure where to start tho as this is a pretty complex situation. Apologies in advance if I ramble but I will try my best to stay on track.
About six months ago, I went over my $2000 credit limit by $300. I’m a single mom to a 2 year old going through severe health complications over the last year. I’ve never had a credit card before which is probably odd because I’m 29.
When I found out I was pregnant I figured it would be the right time to get one and I was very responsible with it until my son got sick. In the span of six months I had no choice but to charge several of his medical procedures. The last procedure went over my limit by about $300 and I was intending on paying the $300 two weeks later out of my pay cheque but that didn’t end up happening as I was laid off within a week of my child having surgery.
Obviously the bank has been charging me 35$ a month for 5 months ($25 for the first) but my minimum payments are around $55 so adding in interest, etc I’m not going anywhere. Im literally just throwing $55 away. Yes I know I got myself into this. I definitely understand that. Now I have just recently found another job but now I have a pile of medical bills (the $2300 is just the tip of the iceberg) and I’m overwhelmed. I don’t think I will be able to pay that entire $300 off within the next 5 months. Being out of work for that time period has put everything behind. I have always made the minimum payments though.
Here’s what I’m asking though. What would you do given everything in my situation? I was wondering about cancelling the card so at least they wouldn’t charge the overlimit fee right? I know that would totally mess up my credit but isn’t that what’s happening now by being over my limit every month not making a dent. At least if I cancelled it I would be making some kind of a dent in the payments. Or should I just keep paying the $55 till I get things back on track and pay at least the $300 as soon as I can?