where to start?

Hello all
My wife and I have been overcome with credit card debt. Currently we have aprox $110k in CC debt, the accounts are current at the moment. We are finally tapped out of spare income such saving, stocks ect..... to make the minimum payments. I was able to consolidate all of my debt into a single loan but the interest is fairly high @ 16%. the rest are 14-18% and one at 28% for being a week late on a payment.

As you could say we finally hit rock bottom and realize our mistakes. We are so far in we realize that we can never pay them off with all the compounded interest.



Could anyone make a recomendation as to what direction you would head in trying to get out of debt?

Thank you for your help
Rgds,
Justin

Just to throw some ideas out there ~

Have you or your wife thought about picking up second jobs? It's tough...especially if kids are in the picture...but I think doing something extra a few hours a week can really make a difference in being able to pay extra on your accounts.

Do you have anything you think you might be able to sell? EBay might be an option.

Do everything you can to tighten up your budget. I recommend building something in Excel...I use it to balance my check book as well as keep track of credit cards. This way you'll be able to see where your money is going and will let you see if there are things you can cut out for the time being.

You will absolutely come out of this...and when you do...you'll be so proud of the work you've done

Debra

That is good advice debra..don't get discouraged..all of us have been there at one time or another. If you have any questions as there are alot of people on here with wonderful knowledge ask and we will help you.

Yep...I agree with LADYBUG. We ALL have 'been there.' And some of us are STILL there..like me!!LOL Sometimes you just have to laugh about things...I don't mean being in debt is funny, I mean just to relax and take a deep breath 'kind of thing.' You WILL get out of it. There are alot of people on this forum who are very knowlegeable about 'such things'...they will put you in the 'right direction.' I know getting a 2nd job is tough. I'm a single mom..that's REALLY tough sometimes. Hello, LADYBUG..how ya been?

Justin, moonlighting is not the answer. Nor is dipping into your savings and investments. What you need to do is swallow your pride, forget about your credit score, stop the interest hemorrage, and do something drastic; you've got a family to think about. You yourself know you'll never pay it off. That interest you are shelling out can be applied towards a better tomorrow. My advice, look into bankruptcy or if you feel you have the means to pay half of it back or less, then check out a few settlement companies. Lots of good advice on this forum, check them out. Good luck.

I agree...with this size of debt and having wiped out all resources, I too think BK will be your best option. It will give you a fresh start.

When I got divorced about two years ago, I ended up with the entire accumulated debt. The judge recommended I declare bankruptcy and start over again, knowing it may take about 20 years to pay off about 50K of debt. Under the situation you currently have, BK may be the best option. Take a look at Chapter 13 and Chapter 7 options and contact a few attorneys for free consultation. I was also advised to spend a few hours in the local bankruptcy court to learn more about the procedures and get familiar with the reality of it. Thanks to the support of great people on this site, I believe you will also be out of it with a little extra planning. Good luck!

Everyone's situation is different. Sometimes my debts seem overwhelming, until I look at other people's debts ( in which they post on the forums..). Then, I think mine is TOO bad. PLEASE...don't think I'm putting ANYONE down for their debts. I'm just saying everyone's situations are different and the solutions would be different, as well.

should i use debt settlement or debt consolidation?

ed h , so that we can better answer your question could you elaborate more about your situation. Neither program is better than the other. It just depends on your situation.

Sorry, but we don't allow solicitation here. - Uncle Wulf

Dave Ramsey has really good ideas - he offers a course on financial peace you should go to his website. Really anti bankruptcy. But his style is really aggressive with money & budgetting. We are thinking of going this route, since we don't have the Money to settle.

I agree...Dave Ramsey has some really good common sense answers to tough questions. There is a good FREE ebook on takecontrolbedebtfree-dot-com that gives some good common sense advice and a 7 step plan as well. You may want to check it out.

i used a debt settlement company that worked miracles. and in the long run i believe that it looks better that you paid them something rather than filing and paying nothing. either way you will have to do something drastic or you wont be able to survive it. In the end ours was settlement which i felt more comfortable about. In all honestly i did charge the money and owed them something and wanted to pay them, i just couldnt.

Yes Tom707, we understand who you work for and what you do. No need to pollute every thread with your advertisement.

nothing like plugging in there ad! way to go! I think we just should make a page were we fill it with banners of all the different companies that want to advertise here and let them fight it out. maybe they would stay out of the discussion forums. No never mind they wont.