Opinions on options
Date: Thu, 02/14/2008 - 23:10
My wife and I are roughly $65000 in debt. 50K of that are auto loans and 15K is credit card, property & IRS tax, and student loan debt. To compound this situation, my wife was laid off six months ago and her unemployment benifits have just run out. She has NOT found work. As a result, we got behind on things (although we are now current on credit cards) and our credit scores have dropped into the low to mid 500's. We own our home free and clear but no one will give us a home equity loan for consolidation due to our credit scores, and because we are on a payment plan w/ the IRS for 1,900 in back taxes. I really dont want to put the house on the line since it is the Only thing we own but I feel lost. I'm stressed beyond belief and have seen my health take a dive for the worst as a result. The combo of debt and working for a company I detest is slowly killing me...
Hello Mark! Very sorry to hear your problem. i understand that y
Hello Mark! Very sorry to hear your problem. i understand that you are going through a very stressful phase of your life. but don't loose heart.
my suggestion is do not go in for a home equity loan. as your home is still safe and you have still not got it into this you better leave it alone. because if you take a home equity and fail to pay up on time for that as well, then you will also loose this only asset you have. instead consider going for a settlement program. from what i have heard, in settlement plans, you need not make payments for five to six months at a stretch. so you will have ample time to accumulate some cash and i am sure your wife too will find a job by then. then at the end of say, about six months or the time period agreed upon with your settlement company, you pay a lump sum amount and if the settlement company knows its work properly, then you may finally have to pay about half of what you initially owed. all your multiple loans will be combined and almost the whole of extra charges can get deducted. yes, your credit score may take a further dip, but once you start paying, it will improve over time. someone more knowledgeable will be here soon to guide you. take care and good luck!
I want to tell you that you have already made the first step in
I want to tell you that you have already made the first step in helping yourself: admitting that you need to do something. I think that is the hardest part of getting out of debt.
For your options: Have you thought about trading in your cars for something less expensive? This may take a big chunk out of your debt and make it more manageable. I am not sure if a bank will take a settlement offer on car loans. Please correct me if I am wrong!
debt settlement is also an option and you can hire someone to do this for you but you can also do it yourself. There is alot of information here that will help you through this process. If you hire someone to do it for you, PLEASE make sure you research them, read the contract, and ask on here before you sign up for anything. There are many bad companies out there.
debt consolidation is another option. This is where you consolidate all of your loans and pay one monthly payment to a company and they disperse the money among your creditors. This option may get you lower interest payments and no late fees but you will pay back all of what you owe.
This site also has a free consultation you could take advantage of. If you sign up for the free consult, someone with knowledge in all these areas will call you and help you with your options. Every situation is different and this is a good way to see what is available in your situation. And it is FREE.
There is always bandruptcy but I would use this as only a last resort.
I hope this helps and let us know how things are going. Many of us here are were you are and it is very stressful. Be assured that by taking action, this situation will get better even though it seems impossible right now. Hang in there.
