BOA Gold option+Credit Card

Haven't you asked them why they are dropping the credit limit?

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If you can pay them in full and close the account then that would be your best course of action. It'd also save your credit report from suffering any damage.

No I dont have any cash available. I have been eating through my savings. I guess the best bet is to go late and settle? I dont plan on moving and my credit score doesnt matter that much.

you might want to do something other than ruin your credit. I don't know really enough about your financial picture overall to do much more than speculate. Find bills that are not necessity and cut them as much as you can (cable TV/internet, cel-phone plans that you are using less than half the minutes of the plan, even electricity can be trimmed if you turn the heat down sooner and bundle up even if it sucks, going out to eat, etc.) then you call BofA and you tell them you want to increase your line of credit up enough to consolidate in the credit card you have with them and see if the will let you at which point you promptly do one of three things: 1) cut the card up, 2) freeze the card in a block of ice, or 3) put it in a safe somewhere out of sight and out of mind. After that you start on a program that I have seen work for my parents: You take every last cent of your paycheck and you pay it to the line of credit, then you pay your monthly bills out of the line of credit including your mortgage. In this way you are hugely overpaying your payment every month and reducing interest charged for that period and you are making the maximum possible payment your current finances allow (I am assuming you have access to the LoC as if it were a bank account with a credit/debit card and can make payments for bills and such in that manner). If they won't increase it enough to make the credit card debt and consolidate it then just include the payment for it in the monthly bills side. Scraping month to month sucks, but would you rather risk losing your home or having them put a lien on it?

Now the only way this can work is if you can get BoFA to stop reducing your credit line every month. I know having 2 kinds is spendy, I have two myself, but you have to really look at the finances and try hasrd to find a way to make it happen til your wife can find employment again IF you want to save the credit. I would be worried about the credit due to the fact that such a large portion of it is tied to your home. If you can stop spending on the credit card and get it consolidated in you might be able to use savings and the saved CC payment to make ends meet a bit better. You also might try and see if BoFA will lower your interest rate(s).

Whatever you decide let us know how it works out.

They will not increase the amount of my gold option. It is not like a credit card. If you want to use it you have to call them. So many people have defaulted they basically shut the entire program down. It is not tied in to my house so if my credit cause down my mortgage payment stays the same and I keep my house. The minimum payment on the loan is 560 dollars plus my other cards, not to mention my wifes cards.