I'm in trouble financially
Date: Wed, 07/08/2009 - 10:11
In unsecured debt we owe about $50,000 to various credit cards and stupid consolidation loans we took out. I have taken to contacting various debt reduction agencies but am very fearful of going this route based on information I have gotten.
I am up to date on most accounts, but there are a couple where I cannot make the minimum payment so vice paying $150...we pay $20 just to make an effort. We have dwindled through our savings and have a disgustingly low amount in the checking account now.
Besides having my wife get a job or pursuing a second job, I look forward to any advice anyone here offers.
??? You're buying a house while you're in financial trouble??
??? You're buying a house while you're in financial trouble?? Am I missing something here? Prudent financial planning would not have you buying something while you are struggling to pay other bills. I'm not passing judgement here. I'm trying to understand your current position and your goal. Also, I'm wondering how you would qualify for a mortgage with a debt load that you can't pay.
As for your question, you either have to increase your income or reduce your spending in order to increase your ability to pay down those bills. Sounds like a second job or your wife working is the logical choice here.
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I knew the part about buying a house would confuse some. We are
I knew the part about buying a house would confuse some. We are still buying our house, but we closed on the purchase of it March of 2008. So for the next 28+ years I consider ourselves as "buying" a house.
Technically, once you get the loan for your house, you are consi
Technically, once you get the loan for your house, you are considered a homeowner, NOT buying...buying is the process of getting the loan.
So in your case, you own a home (with mortgage) and have credit card debt of $50K...are you current on your mortgage (not late)? Again, it comes down to increasing your income and/or reducing your debt.
If your credit is in good shape, I would contact each of your cc companies and ask them for a hardship program...see if they'll help you. Altho, if you are current, you may not qualify...catch 22 situation. But, since you are making only partial payments, they might help. Debt settlement will trash your credit rating.
You might want to look into a debt couseling service such as a non-profit like Consumer Credit Couseling. They will help you work out a budget and negotiate with your creditors for a repayment plan, usually with lower interest rates. The initial couseling session is free.
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