Advice Needed
Date: Mon, 07/13/2009 - 18:13
I've been trying to keep up with my debt for the past few years, but can't do it anymore.
We had to move crosscountry for work and couldn't sell our home, so we now pay both a 1750 mortgage and 2500 in rent. We have 60k in credit card debt (averages to 16% interest) and pay 1050/month for cars/insurance. I'm considering just filing bankruptcy and letting the banks have the cars and the house, but wanted to know if i have any options other than that.
I bring home 6500/month, but pay 5500/month in rent/mortgage/cars, so after utilities, don't even have enough to pay the 1000/month in minimum credit card payments even if we don't eat!
the combination of cars+mortgage and credit card debt is killing us...we could barely make it by with cars+mortgage but can't do it with those and the debt
we have an infant as well, which means diapers etc
My fico is down to 635 due to the high balance/limit ratio (we are now maxed out on cards)
for years i paid more than the minimums and we got by, but now I don't think we can anymore...interest alone is 10k/year!
to top it off, i missed a 300 payment to chase last month and they now say i owe 1500 this month, which i can't come close to having
would consolidation or settlement or bankruptcy be our best choice?
We had to move crosscountry for work and couldn't sell our home, so we now pay both a 1750 mortgage and 2500 in rent. We have 60k in credit card debt (averages to 16% interest) and pay 1050/month for cars/insurance. I'm considering just filing bankruptcy and letting the banks have the cars and the house, but wanted to know if i have any options other than that.
I bring home 6500/month, but pay 5500/month in rent/mortgage/cars, so after utilities, don't even have enough to pay the 1000/month in minimum credit card payments even if we don't eat!
the combination of cars+mortgage and credit card debt is killing us...we could barely make it by with cars+mortgage but can't do it with those and the debt
we have an infant as well, which means diapers etc
My fico is down to 635 due to the high balance/limit ratio (we are now maxed out on cards)
for years i paid more than the minimums and we got by, but now I don't think we can anymore...interest alone is 10k/year!
to top it off, i missed a 300 payment to chase last month and they now say i owe 1500 this month, which i can't come close to having
would consolidation or settlement or bankruptcy be our best choice?
If you file Ch 7 bk, your credit score may get lowered. bankrup
If you file Ch 7 bk, your credit score may get lowered. bankruptcy will stay in your credit report for ten years and adversely affect your credit score. However, if the bk gets discharged, you are no longer required to pay off the debt and the creditor cannot harass you for it.
Under debt settlement, you pay off the debt in a 2 - 4 years. There are possibilities that in the meanwhile the creditor may sue you and bring judgment against you.
If you cannot make payments, I think you should file bankruptcy.
