I have accumulated alot of credit card debt over the last 5 years, with it accelerating over the last 1 1/2. About 3 years ago, we got a second mortgage on the house to pay off the debt, and well, it is all back, and more. With the second mortgage, it makes it virtually impossible to pay. Guess we truly lived beyond our means. Our credit isn’t shot, as a matter of fact, it is just poor. Right now, I have a 652 and the wife has a 670. We have never, ever missed a payment, however, the minimum payments on over 40,000 in credit cards is more than we can afford.
My income dropped bad last year, and most of the debt piled up trying to “bridge” the gap. Can’t really sell the house (housing market sucks, and second mortgage was for 95% at that time) without a short-sale. No fancy vehicles to sell, both our cars are used, with one payment of $310, and other $322.
Anyway, any ideas? Credit cards are currently paid, not late. Don’t want to get into a late-fee mess if we can help it. Called the credit card’s to try to get the interest rate reduced, or some help with lowering payments, but no dice.
BTW, I do NOT want to do a BK. I was hoping that I could maybe let it go into collections, and then work out a reasonable deal that way, but I was worried that the late-fees and HIGH interest rates would make that too-little, too-late
Just to be clear, I am not wanting to get another credit card. That is what got me into this mess to begin with. I basically was wondering what works better with high credit-card debt. Waiting for charge-off/collections, or trying debt-negotiation. Either way, it will trash my credit, but as of right now, I honestly can say that I don’t want any credit anyway!!!!!!!!
Actually Suzi, my wife got me to watch a Dave Ramsey show with her the other day. We sat down, ran our numbers. The problem is we don’t have enough income to pay the bills. It isn’t like we are blowing our money right now, we already blew it. Now, we are in the position of having 2 upside down cars, basically and upside down house, and credit cards that are making life miserable for us. Yes, we got ourselves into the mess, and we will pay what we can. I do NOT want to do a BK and neither does she. Nobody forced us to use these cards, and I will not try to sidestep them. Besides, I am pretty sure that we make too much money to do a BK anyway, since we would basically be put onto a payment plan anyway. I would rather do it the “right” way, it’s just that we don’t have enough money right now to do it the “right” way, thus the asking about trying to work out a settlement thru collections or thru debt negotiation.
