I need some advice please...........$20,000 in debt @ age 25
Date: Wed, 07/12/2006 - 05:40
My wife and I are in over our heads, or it seems. We bought a house 2 years ago and since then we have been getting into financial trouble. Our first and second mortgages are 2 payments behind, our 2 credit cards (1 with a $5000 balance, the other with a $500 balance) are in collections, and payments to our lawyer and dentist are behind, as well as all of our other bills, besides the car insurance. The home owner's association fees ($400+) have not been paid and they're threatening to put a lien on the house. We also owe an apartment complex close to $1500 for breaking a lease and we have some student loans that are in forbearance for the moment. All together with late bills and our debts, I figure we're in debt $20,000. Our credit scores at below 500, probably ranging from 450 - 490 and we've tried numerous times to refinance our home, if for nothing else to combine the two mortgages into one and we have been denied every time. I went online this morning and looked up information about getting a personal loan to consolidate this debt and take care of these late payments, but the interest on those loans are crazy and it doesn't make any sense to do that.
I just signed up to the forums so hopefully I can speak to someone today about my situation, but does anyone here have any advice for us?
You need to prioritize your bills first. Pay those debts first t
You need to prioritize your bills first. Pay those debts first that are taking more than the principal amount. You are losing valuable money on interests alone. When you talk with the consultant, ask him to combine all those bills that are catching the maximum interests. He needs to lower down the interest rates with the credit companies and frame out lower monthly payments. You need to save some money at the end so that the daily expenses can be afforded. Look for a second job and use that money for paying your mortgage. Ask for some benefits if your mortgage company has to offer you. There might be some packages available to people going through hard times.
Don't loose heart at an early age. Remember to check your financial needs from now onwards. Being in debt is no offense. It can happen with anyone. The main thing that matters is to clear them off as soon as possible. If you can get a second job, it will be very helpful in your case. And remember, you have to take some restricted budgeting for a while so that the maximum concentration is put towards saving money at the end of the month. You need a proper planning and everything will get arranged properly.
You need professional help in learning to deal with money. I don
You need professional help in learning to deal with money. I don't mean that judgementally. Get help while you are still young enough to pull out of this and still have a life and retirement. I wish we had have gotten help years ago. There is still hope for you!
Hello acetodd, You should be worried but not that much. Dont
Hello acetodd,
You should be worried but not that much. Dont let it go into your head and kill you every day.
The first thing I would is to sit down, take a piece of paper and write down al your creditors, your balances, aprs, minimum payments. Then definitely speak with an advisor, if you dont want to wait for them to call you, call them. Give them your info, they will be able to help you out. Good luck! :D