Sinking in debt

My friend's life is overshadowed by the tensions about her burgeoning debts.she took out a 28 k loan to buy a house and a car.she had a picture perfect life with her hubby, a nice job, a new home, a new car and jeez everything she wanted.but the sudden loss of her job due to her ill health and then a divorce got her into a horrible cycle of debts. She actually took out more loans to pay off the existing loans, you know rob Peter to pay Paul stuff.but she ended up with three loans and four credit cards and constant worry.at first she hid it from her mom and her brother.she was worried but at the same time did not want to accept that she owes debt.thatz probably her situation got worst.

Hi Rupert!
I am so sorry that this should have happened to you. Yes, try as we might we often loose track with credit cards, they are really a deadly trap. I am no expert, but it looks as if you have too many scattered debts. You can either go in for settlement or consolidation. Both will reduce the amount that you currently owe. But as the amount is quite high, you can go in for settlement as you will get some time to accumulate some cash before you make one bulk payment. However, it may have adverse effect on your credit score. Good luck!

There is also the option of bankruptcy and you should get a free consultation. You may be able to keep you home with a bankruptcy - maybe even the car.

I know how hard this situation can be. I was there myself. There is a way out and you have found a place on this website where people will be willing to help you and to listen when you need to vent.

What I would suggest you do first is to sit down and write out all your debt - who you own, how much you own, min. payments, etc... This is going to be the hardest part because it will seem overwhelming. Then you will need to make some decisions. Do you want to try to make the min. payments and try to pay these loans off. Do you want to consolidate, do you want to settle or as a last effort do you want to file bankrupcy. It sounds like you might want to sit down and make out a budget. This has helped me out tremendously in getting control of my money. I can tell you there is an end to this but you have to take action and do it now.

I would also search this site and read as much as you can about people that have been in your situation and learn as much as you can.

Another option is to take advantage of the free consult on this site. They can give you options based on your personal situation.

Please let us know how you are making out. The people here really do care and want to help in any way possible.

How much are you able to pay monthly towards your debt?

she does not want to declare bankruptcy, though she has got a job but everything she earns goes off in paying for the school fees of her kids.i asked her to take help from her husband, but she told me that he is not ready to help her.it is so ridiculous. after all she herself is not responsible for taking care of the kids, they are his kids too. can debt settlement work for her?

call the credit card companies, see if you can work out a lower interest rate and lower payment plan. Explain your situation, ask about a hardship program otherwise you'll have ask someone to help you settle debts

I should have signed in before posting the comment

"call the credit card companies, see if you can work out a lower interest rate and lower payment plan. Explain your situation, ask about a hardship program otherwise you'll have ask someone to help you settle debts"

I am sorry to hear about your situation, it's a scary place to be, but there is hope.


As spatterson said, if you jpoin the site(it's free) and sign up for the free consultation, they can help with options you may have.

I used the hardship program with a couple of my credit cards, but not all of them offer it. You need to know how much you can safely pay them each month, and be able to do it faithfully.

I also had to do a settlement on one card, the balance was so high. Before I did the settlement, we had started saving and paying extra on some smaller cards and had gotten them paid off, so I was able to use that money towards the settlement, and ended up paying them off- the full balance.

If you have any questions, please feel free to ask--we are here to help you!..Karen