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My wife and I have a very good income (over 150K a year) and are getting killed on credit card debt. We owe about 50K. Between school payment for the kids, car payments and excess bills, we are getting by but barely due to the crippling monthly credit card payments which are close to 2,000 dollars a month.

On top of that we have debt with the IRS which we have to clean up and I do not want to go into my retirement fund as we are paying them back (about 40 grand). I have been advised to buy a house but we do not have any downpayment saved. We screwed up badly and just want to get out of debt.

We did credit counseling about 15 years ago and got out of debt only to get back into it. As of this point we know what we have to do as we have not used credit cards in months and I want to go from paying 2,000 a month to 1,000 a month in paying off the debt.

My question is what credit card consolidation company can I use on the internet or by phone that is reliable? I live in New York City and I do not want to have a face to face meeting. I guess I am embarrassed but I know we have to do something and do it quickly.


Welcome to the Community :D There is no reason to be embarrased, we have all had similiar problems, that's why we all found this site!

You brought up a valid point that I have been talking about-if you aren't careful, you can get back into it. I had to learn how to do things in a different way concerning my debt. I got back into it also.

Since you are registered, you are entitled to free credit ocunseling if you signed up for it.

They can offer solutions you may have with your debt, from which you are free to choose or not. You can also search this site, there are many ways to resolve your debt, from Consolidation to Do it Yourself.

Who and why did somone advise you to buy a house?

The IRS will work with you on repayment, if you tell them you are having a problem with your finances, or they did with me. They let me lower my payment to them for about 6 months until I could get ahead..

Good Luck, let us know if you have questions..karen

Sub: #1 posted on Mon, 05/26/2008 - 09:26

Bossy4455 Bossy4455
(Posts: 5854 | Credits: )

Happy Memorial Day AGerst.

I Definately recommend that you first get some debt counseling. Debt Counseling will give you a better idea on different programs that are currently available, service levels and savings.

A brief breakdown of some options and the negatives and positives of each:

1. consumer credit counseling -
negative: Very harsh blow on credit, takes 5-7 years, still pay interest, small payment reduction

positive:Get out of debt sooner than the route you are currently on and creditors harrassment ceases in most cases, fees absorbed by credit card companies and passed on to you through interest.

2. debt settlement
negative: fee involved 12-18% of total balance, affects credit report temporarily and then heals itself as creditors are satisfied, be sure to go with legitimate company where you can track your savings and where it goes.

Positives: Cut your monthly payments usually by 50%, Save approx. 40-70% overall including fees, get out of debt in as little as 12 months to 48 months, creditor harrassment ceases in most cases.

I agree with Karen as far as your IRS debt, you can definately work out a plan with them and once you begin saving on debt consolidation, you can use some of that savings towards your IRS debt.

Buying a house has its pros and cons in your situation.

Buying a house is DEBT. Buying a house definately helps with taxes especially for self-employed because of the tax write-offs such as interest, origination costs of the loan, property taxes. Buying a home will hurt you if it is unaffordable no matter how you slice it. If you find a home loan that you can afford, that will not adjust in the near future, that is not interest only, etc.. then the true picture presents itself in regards to the "affordability".

Remember, purchasing a home does not include only a mortgage payment. It includes:
1. Mortgage Payment
2. Property Taxes
3. Property Insurance
4. Maintenance Costs
5. Homeowners Association Dues(if applicable)
6. In many cases Higher Utility Bills

My suggestion: Enroll in Debt Settlement, get your debt paid off as quickly as affordable (try 12 month plan or 2 year plan, etc..)

Use extra cash flow to pay down IRS debt,
Eliminate careless spending such as cut backs in areas such as clothing, eating out, energy bills, hair/nails, basic cable instead of premium, telephone bill review-get on flat fee programs such as metro pcs if avail $39.00 unlimited, etc. etc..

I hope this helps!


Sub: #2 posted on Mon, 05/26/2008 - 12:10

sanbaugh sanbaugh

(Posts: 21 | Credits: )

Excellent information form both the above posters.

I agree with Sandra, buying a house when you're alreayd in debt may not be a good idea as it'll add to your expenses. She has also explained the pros and cons of the different programs. It'll help you in deciding your route.

However, I would rather suggest that you try to negotiate a lower payment with your lenders. At times it works out.

Taking the help of the free financial counselling isn't a bad idea either. Best of luck! Hope you soon find a way out of your debts.

Sub: #3 posted on Tue, 05/27/2008 - 03:02

tweetyturner tweetyturner

(Posts: 278 | Credits: )

Is it possible to pay off some smaller bills first to give you extra cash flow every month, or give up a few "niceties" for a little while. Other than that check out any company you want to work with first. Best to you...

Sub: #4 posted on Tue, 05/27/2008 - 10:44

dbcoders dbcoders

(Posts: 36 | Credits: )

I work with a debt settlement company and I deal with people in similar situations daily. We can cut your payments in half.
I can give you some info if you like. You can sign up for some at the website or call me at xxxxNo Soliciting per TOS ..number removed..Bossy4455

Sub: #5 posted on Wed, 02/18/2009 - 17:18


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