Lots of debt, not behind, but getting close...
Date: Wed, 09/08/2010 - 03:33
I have lots of debt... lots... makes me sick even saying this, but between my husband and I, we have over 40K in revolving debt. That doesn't include student loans, home loan and car loans. Ugh.... Oh and very little to no equity in our home.
I'm looking for some advice from someone who's been in a similar situation or has experience with something like this...
1. Do you really have to let yourself fall behind before creditors are willing to work with you?
2. With a debt consolidation, do you lose your home/cars if they aren't paid off?
3. With a debt settlement, do you lose your home/cars if they aren't paid off?
4. How is your credit impacted with each? For how long? I know with bankruptcy, it used to be 5 years, but from what I'm reading on the internet, it seems that it might be much longer now?
We're basically living paycheck to paycheck... and usually accruing debt as we go. I'm not even really sure how we got in this boat... well, I mean, I know... but I don't know how it got this bad - it snuck up on me... and now the weight on my shoulders is tremendous... I have two young kids - I don't want them to grow up in a financially unresponsible family.
Suggestions/Advice?
Sincerely,
Mayney - Mom of two boys that I'm determined to raise with more financial sense than I have...
1. have you talked to your lenders or asked them for a hardship
1. have you talked to your lenders or asked them for a hardship plan?
2. NO you do not loose your house or your cars.
3. Same as #2
4. Your credit will tank with both debt settlement and debt management. Bankruptcy will impact your credit for 10 years. However and I speak from personal experience, it is not all that bad. I am 6 years post bankruptcy and my score around 670...I have rebuilt my credit and all the negative accounts have recently dropped off. Many people spend a year working towards a debt management or debt settlement plan only to have creditors start suing them....it is a risk you take. Some of them end up filing bankruptcy after wasting time and money in these programs.
Google Consumer Credit Counselling Service...they are non profit and they are located in most major cities. Talk to them.
Hi Mayney, Most of the answers you seek can be found by search
Hi Mayney,
Most of the answers you seek can be found by searching these forums. I fall in the debt settlement category (doing it myself) and I had not even heard of it when I began perusing these forums. I have now settled 3 of 4.
My research and experiences have led me to believe that settlement is better than bk just for the amount of time your credit is hurt.
I drive an old car that is paid for and would suggest doing that to eliminate that pymt.
They cannot take your house.
Good luck.
Kaylee