I was told I am unable to get any kind of “credit bailout solutions” because of WI laws. But I was however told I could stop making payments to my credit card company, for about 3 months…and eventually the credit card companys would settle up with me.

My question? Have you ever done this? Was it worth it? How bad did it effect your credit score?

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Getting rid of my mortgage payment without hurting the credit that much?
“What would you do in my situation?”

I bought a house in 2005 for 160K, fully financed.

I bought a car few months later for 20K (my fully paid one broke and I needed a new one which represented more monthly payments out of pocket). Additionally I paid for the landscape, gutters, electrical outlets and central air conditioning after I purchased the house, a total of 10K from my pocket that made me put more debt on the credit cards.

So, I started with a mortgage payment of 1K per month, then increased credit card payments while doing all the improvements in the house, and then got a car loan, so in mid 2007 I needed to refinance, and out of the refinancing I paid the credit cards and the car all on escrow without having a penny coming to my pocket . My house got appreciated for 270K at the time, and I took a loan for 190K (for what I pay $1,200 monthly).

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