Our Story...
Date: Fri, 03/09/2007 - 10:10
It all started when I decided to stay home and raise our daughter back in 2002. We of course thought that we could make it on one income and then of course never took into consideration of the "little things" that come up. So, we started charging things and then barely could make payments and it just snowballed out of control. We were able to consolidate it at first, but of course then you get that extra money and think you can afford something else that you really don't need.
In August of 2003 we bought a house after our second child was born. In October 2003 my husband became ill and had to quit his job due to an illness and being diabetic. He tried working out of the house as a recruiter so we were paid a little every week, just waiting for the commission checks to start rolling in, well 3 months later no commissions. We were in really sad shape and had already lost our car etc. I went back to work but, still could not catch up and was deeper in debt. He finally was better to go back to a new job FT, but it was a little too late.
In the Summer of 2004 we had no choice but to file BK 7. We were able to keep our house and vehicle. We did not sign any reaffirmation agreements in case further down the line we would not be able to afford them that we could give back without any repercussions. After we were Discharged in March of 2005 we seemed to have everything under control. We were able to trade in our vehicle and get one with a smaller payment and we got 3 small credit cards to rebuild our credit.
We seemed to have things under control until January 2006 when he was in a car accident and we had to pay $500.00 deductible to get the car fixed. So, thats when our nightmare occured with the Pay Day Loans. We borrowed the $500 to make up the deductible and we would pay it back with the next pay. However, we are still taking the loan out every pay and we are up to $800 a pay now. To make matters a little more difficult is that I became pregnant in February 2006 unexpectantly. Then I was diagnosed with Gestational Diabetes so, I was put on Medications etc and then having more doctors visits and ultrasounds etc. Then our 3-yr ARM was up in August of 2006 and we tried to refinance I don't know how many times and could not because our credit score was too low etc. So our payment went from 933 to 1200 so, we tried until December 2006 to refinance it and was unable to and finally gave the house back and signed a deed in lieu so we will not owe any money to the mortgage company since we never signed the reaffirmation agreement, which I am trully thankful we did not, but that has set us back so far behind and know since we were unable to make any credit card payments and the minimum payment is through the roof and I have spoken to the collection agencies and what I can afford to pay they will not take. Plus the medical collections are coming left and right and will continue due to both our daughters being in the hospital this Spring. We just recently had to take another Pay Day Loan out for $300 which we did through online so that the money would be in our account ASAP to cover our Jeep payment and of course didn't make it in time and that check has bounced. I am sooo tired of being in this trap. We are living in a 2 bedroom twinplex with 3 children, 1 dog and a cat and no room. I have no clue how to get out of this mess. We owe around $8,000 in credit, medical bills and Pay Day Loans. I was trying to get a job, but can't work during the day due to the kids and I am having a hard time finding a job at night to work around my husbands schedule.
I guess my main concern is can I get credit counseling for what I owe, how will it affect our credit and will we be ale to get a house within the next year, because we can't stay here for more than a year with 3 growing children in 1 bedroom.
Sorry if I don't make any sense and seem to just sound like I am babbling, but I really don't know what to do, we can't get a consolidation loan like we want and can afford now due to our credit and I just don't know what to do. I am sooo overwhelmed and depressed over our situation.
Thanks for listening
Sward
In August of 2003 we bought a house after our second child was born. In October 2003 my husband became ill and had to quit his job due to an illness and being diabetic. He tried working out of the house as a recruiter so we were paid a little every week, just waiting for the commission checks to start rolling in, well 3 months later no commissions. We were in really sad shape and had already lost our car etc. I went back to work but, still could not catch up and was deeper in debt. He finally was better to go back to a new job FT, but it was a little too late.
In the Summer of 2004 we had no choice but to file BK 7. We were able to keep our house and vehicle. We did not sign any reaffirmation agreements in case further down the line we would not be able to afford them that we could give back without any repercussions. After we were Discharged in March of 2005 we seemed to have everything under control. We were able to trade in our vehicle and get one with a smaller payment and we got 3 small credit cards to rebuild our credit.
We seemed to have things under control until January 2006 when he was in a car accident and we had to pay $500.00 deductible to get the car fixed. So, thats when our nightmare occured with the Pay Day Loans. We borrowed the $500 to make up the deductible and we would pay it back with the next pay. However, we are still taking the loan out every pay and we are up to $800 a pay now. To make matters a little more difficult is that I became pregnant in February 2006 unexpectantly. Then I was diagnosed with Gestational Diabetes so, I was put on Medications etc and then having more doctors visits and ultrasounds etc. Then our 3-yr ARM was up in August of 2006 and we tried to refinance I don't know how many times and could not because our credit score was too low etc. So our payment went from 933 to 1200 so, we tried until December 2006 to refinance it and was unable to and finally gave the house back and signed a deed in lieu so we will not owe any money to the mortgage company since we never signed the reaffirmation agreement, which I am trully thankful we did not, but that has set us back so far behind and know since we were unable to make any credit card payments and the minimum payment is through the roof and I have spoken to the collection agencies and what I can afford to pay they will not take. Plus the medical collections are coming left and right and will continue due to both our daughters being in the hospital this Spring. We just recently had to take another Pay Day Loan out for $300 which we did through online so that the money would be in our account ASAP to cover our Jeep payment and of course didn't make it in time and that check has bounced. I am sooo tired of being in this trap. We are living in a 2 bedroom twinplex with 3 children, 1 dog and a cat and no room. I have no clue how to get out of this mess. We owe around $8,000 in credit, medical bills and Pay Day Loans. I was trying to get a job, but can't work during the day due to the kids and I am having a hard time finding a job at night to work around my husbands schedule.
I guess my main concern is can I get credit counseling for what I owe, how will it affect our credit and will we be ale to get a house within the next year, because we can't stay here for more than a year with 3 growing children in 1 bedroom.
Sorry if I don't make any sense and seem to just sound like I am babbling, but I really don't know what to do, we can't get a consolidation loan like we want and can afford now due to our credit and I just don't know what to do. I am sooo overwhelmed and depressed over our situation.
Thanks for listening
Sward
Hi, please don't be stressed, Sward. I know you are going throug
Hi, please don't be stressed, Sward. I know you are going through a rough time but everything will be alright. Take some professional help and manage the repayments with your creditors. You need to have a job at the earliest for paying the bills and other necessary utilities.
Your credit won't be messed up if your debts are consolidated. Your credit at present is already going down and if you don't take care of it now, it will be hard to catch up with the repayments later. Keep the program for the shortest tenure and don't miss the payments in the plan. When the program is over, your credit will show at the best because all debts will be paid off and your scores will rise higher. Speak with a counselor and figure out the suitable plan. Hope this helps!