Bankruptcy?
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I would suggest consulting with a bankruptcy attorney, the rules might be different in different states. If you are only making minimum payments, it will take you years to pay off what you owe, so if you can't make bigger payments, it may be worth your while to consider bankruptcy. I filed 7 years ago, so it will be on my record for another 3 years, but it was the best thing I ever did, I had over 50,000 in debt from my divorce, so I would probably never had gotten that paid off. But be careful not to get yourself back into debt after it's wiped out, or you will just be in trouble again.
Comment about Sophieb's answer, it only stays on your record for 10 years,not for life. And when prospective employers look at your credit report, they are not looking for bad credit, they are looking for a distressed financial situation, one that would make it likely for you to be dishonest to get out of it. I have bankruptcy on my record, and got an Accounting Manager position, and the employer told me that is what they are looking at, not the fact that it is on the record.
From what I recall, the last 3 years of tax debt might not be able to be discharged through bankruptcy, but I would consult a bankruptcy attorney to be certain of the most current laws. If you contact the IRS, you may be able to set up installment payment plan if you haven't done so already (be ready to wait about 45 minutes on hold on the phone though). However, the credit card debt can certainly be discharged through bankruptcy. Bankruptcy does stay on your credit record for 10 years, and will affect the rate of interest you will be able to get on future credit cards during that time. You also may not be able to get any new mortgages for a few years, and some banks will of course, refuse credit cards or loans until the bankruptcy is off of your credit record. Expect to operate on a cash basis for the first 2 or 3 years after a bankruptcy, after that, some lenders will offer you credit cards (but at a higher rate than if you had a better credit record).
never claim bankruptcy.at least not unless you owe more than $65,000. New bankruptcy laws were put in place a couple of years ago wherein you now have to pay back to creditors most of what you owe them.and since you're already doing that you don't need to go bankrupt...plus bankruptcy does ruin your life and that stays on your credit report for life and if you ever want to take some kind of management position it will reflect that you can't manage your money and you won't get hired. The best thing to do is to have two jobs, or three jobs if you can do that.
Don't go thru the debt consolidation places either because although they take care of the interest they also cancel out your credit cards for you and then you can't get them back and have to start all over then the new places you apply at are very wary and you have to overly prove yourself before you can get a credit card in the future.
This is a learning experience for you. Next time you will be more responsible with your credit.
What do I think? Get 2 or 3 jobs and eat beans and rice.
Don't consult with a bankruptcy attorney as you'll just get more in debt, and you have all the answers right here, and you already know what to do.
DOH!!!
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