Credit Card vs Mortgage
Date: Fri, 06/25/2010 - 09:57
His income is around $1200 a month plus $400 social security, plus $500 a month from a person renting a room out of his house.
He currently owes around $120,000 mortgage (Chase) on a house that is currently value at $140,000. Monthly payment is $1186. Interest rate 5.8%. Which he is now three months behind, and he is applying for loan modification now.
He currently owes around $8700 on Chase credit card and $9000 Bank of America credit card. All at high interest rate (20%+, I think).
Basically, I'm unable to continue to support him financially (been doing that over the past 8 years, I'm at 50k debt myself due to school loan and I only make 50k a year). So what would be a way out for him? Bankruptcy?
If he can just stop the credit card payments, I will be able to help him out, but I simply can't maintain both my living standard, pay off my debt, and pay off his debt all at the same time. But will the credit card company sue him and try to seize his assets?
Thank you so much!
I've heard about the loan modification thing but not too savvy o
I've heard about the loan modification thing but not too savvy on it but he definitely should refinance because I have close to that mortgage balance and pay only $575.
Credit card, he can try to settle, file bk or tell them he has a hardship and they will close his cards (which sounds like will happen anyway) and put him on a low payment plan.
I could do this with Chase if I wanted to (but I am trying for settlement) but my balance is 20k and I told them I have only $1500 a month to put to cc debt and 4 cards. They said they could set me up with 0% interest for 5 years at $500 a month.
It all sounded easy enough but it does not solve my longterm problems and I still lose my card so I said no thanks.
good luck to you!
Kaylee
