Our situation advice needed.
Date: Tue, 01/13/2009 - 06:26
Here's our situation: We owe about $100,000 in unsecured CC debt (ack, I know, awful) Miraculously we make the min. payments every month about $3000 give or take. The problem I have is that our balances hardly move at all. The other thing is that as the credit crunch progresses our available credit (which we have no intention of using) has dwindled. This has made our credit scores plumit. So even though we pay our bills our scores are 590-610.
I am seriously considering a debt management plan. My husband hates the idea becasue we believe if you spend it you should pay for it. I agree but we are at the end of our ropes the interest rates in the mid 20's make it impossible. We can afford a loan for 2-3 years at around 10% to get rid of all our debt minus mortgage and student. Is there any loan company that would give us a loan like that?
Does anyone have any ideas. I would really appreciate some insight. Nothing would make me happier to have 1 emergency cc and nothing else.
Alyssa
Nobody is going to give you a loan unsecured for that type of mo
Nobody is going to give you a loan unsecured for that type of money. Have you called your credit card lenders to ask for hardship or to lower their interest rates?? A lot of lenders will do that to prevent defaults.
Remember you owe your creditors money, not your life! With usar
Remember you owe your creditors money, not your life! With usary laws out the door, you'll find, and you're probably in that situation, where interest rates are double digits - even as high as 29%+ in some cases. It's legal loansharking. Look at all your options. If you can make your minimum payments or more, a dmp plan or Accelerated Program would work well for you. If you can't make your minimums or foresee a problem in doing so, look into debt settlement. If you can't make that happen, then talk to a local BK lawyer. $36,000 a year in just minimum payment is a pretty sizable drain on your income that won't away unless you be proactive and seek debt help, obtain a dramatic increase in income at work, or win the lottery.
Thanks for the input. I haven't called anyone yet. We really are
Thanks for the input. I haven't called anyone yet. We really are just beginning to explore some options. I just can't stand having all this debt anymore. We always try to pay on time and our rates 6 months ago were not terrible not great but not 28% like some are now. We had to pay a ccouple days late once or twice and our rates and min payments started climbing all over the place. It was amazing. Any late was really no more then 2 days late.
Is it really as easy as calling to ask for a lower rate? Are there any good lines to use or not use?
Thanks again,
Alyssa
Here is the link to the do it yourself section. It has helped m
Here is the link to the do it yourself section. It has helped me out alot since I'm just starting out also. Tons of useful knowledge on this board.
http://www.debtconsolidationcare.com/diy/