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My Story......

Date: Fri, 03/06/2009 - 15:48

Submitted by anonymous
on Fri, 03/06/2009 - 15:48

Posts: 202330 Credits: [Donate]

Total Replies: 3


My husband and I own a home, and are current on our mortgage, car payments and even our credit card payments. HOWEVER, we have about $125,000.00 in credit card debt. Most of that has eneded up being interest at this point as all our rates were jacked up to the high 20's (29.99 is our highest). We are paying $5,000.00 a month in credit card payments just to keep current, but it isn't getting us anywhere. We are at the point where we need to consider debt settlement, consoliation, or bankrupcy. It happened because of a set of circumstances which left us with a one income household for 4 years and have blown all our savings at this point. We can't sell our house because the market has come down to a point where we own more than its worth (worth $125,000 less than what we paid for it).


Hi penguincrazie,

Welcome to the Community!

With your amount of debt, debt management (or interest rate negotiation) is your best option. Other than that, go for Chapter 13. The bankruptcy courts may even help you re-adjust your mortgage to more realistic levels, but consult a bankruptcy attorney to be sure. Debt settlement is the last thing you want to do, your debt is high and it is almost a sure thing that you will be sued a number of times should you go the debt settlement route.

It is good you are trying to address it before it becomes too overwhelming. Debt management requires that you be on time with your payments. Not all creditors will accept it, though. So I would suggest you utilize a law firm that deals in debt issues, but absolutely do NOT let them talk you into debt settlement.

Hope this helps,

Keep us posted.

chrys


lrhall41

Submitted by Chrys Henderson on Mon, 03/09/2009 - 01:04

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It makes me wonder how someone can reach 125 grand in debt before they realize they need to patch things up. With all of that just on credit card debt, I think you should definitely consider bankruptcy.
How are you keeping track of your money spendings? Are you recording everything you are spending? Once you do, you can begin to budget and minimize money spent on useless items. This way you might be able to put aside more money to pay off the debt. You can't live outside your means, it will only lead to serious unwanted debt.


lrhall41

Submitted by on Mon, 04/13/2009 - 02:59

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