Ok...here%26#039;s my situation.....my husband and I have $47,000 in credit card bills that we are behind in payments and cannot afford the bills. We%26#039;ve always been short on money despite working constantly....so in being short, we charged groceries, gas, etc for a long time and now we are in this situation. We have a 1st %26amp; 2nd mortgage totally $209.000....our house is valued at $300,000...so we have alot of equity which we were told from a lawyer that we have too much equity to file bankrupty or we would have to pay $783 a month back to our creditors....which we cannot afford or we wouldn%26#039;t be in this situation. We have tried over 10 lenders for a refinance to include this debt and have been turned down by ALL of them because our debt to income ratio is way too high. Can ANYONE please offer us any advice on what we can do? We cannot downsize our house because the house sits on my grandfathers land right with my parents and 2 sister%26#039;s house. Any advice is greatly appreciated! Thanks
Credit Card Help! or Bankruptcy? Need lots of advice! $47,000 debt...can%26#039;t afford bill....HELP!!?
Option one would be to sell your home, pay down your debt and rent a modest place to give you some time to get back on your feet. If you have 91k in equity minus the 47k will leave you with roughly 44k. I%26#039;m sure you%26#039;ll likely have less if the house doesn%26#039;t sell as high and/or if you have to pay a broker. You%26#039;ll likely net 25k.
Another option is to get a Home Equity Line of Credit. This rate is typically set at Prime (Fed Funds (5.25% +3%) 8.25% which I%26#039;m sure is less than your credit card rate. I believe you might be able to borrow some of your equity.
Another thought.. Do you or your husband have a 401k with your employer. If so, I would borrow that money.
It is difficult to make solida suggestions without knowing your gross salary and where you live. Good Luck.
Joe
Credit Card Help! or Bankruptcy? Need lots of advice! $47,000 debt...can%26#039;t afford bill....HELP!!?
Why did you have to buy food and gas with credit cards? Sounds like you couldn%26#039;t afford the house in the first place. If you%26#039;re not able to refinance with all that equity and can%26#039;t erase the debt with bankruptcy, the only option left is selling the house, paying off the debts with the equity you net out and going with a cheaper property-regardless of your where your family lives
Credit Card Help! or Bankruptcy? Need lots of advice! $47,000 debt...can%26#039;t afford bill....HELP!!?
It does not look like a Ch 7 debt relief bankruptcy would be an option due the equity you have in your home. How much are you currently paying monthly on the $47,000? Is the Ch. 13 repayment of $783 any cheaper.
Also, have you tried to apply for a loan with no income documentation? Generally the lender will be looking to see that you have a credit score at least in the high 600%26#039;s and have paid your existing mortgage payments on time.
Credit Card Help! or Bankruptcy? Need lots of advice! $47,000 debt...can%26#039;t afford bill....HELP!!?
You need a book called %26quot;Financial Peace%26quot; by Dave Ramsey. He also has a radio show if you can find it in your area. He will tell you EXACTLY how to handle your problem, and he will give you so much hope! He speaks from experience and he can really help you. Google his name and look for his radio show. Listen to him for 10 minutes and you will feel more hopeful. Your situation can be fixed. He can help!! Really, he has helped thousands of people. You can call in his show and talk to him personally.
Credit Card Help! or Bankruptcy? Need lots of advice! $47,000 debt...can%26#039;t afford bill....HELP!!?
Maybe you should try www.greenpath.com they did the credit conseling before my bankrutcy..which is a requirment now anyway. It cost like $50 buck for them to review my case and tell me whether or not i could file. I was able to, and if they say that you should then there is a lawyer out there that will take it to court. it%26#039;s not a 100% gaurentee..but i think it%26#039;s worth a shot. You have to have a list of all of you debts, income, etc..but%26#039;s i think it will be work it for your situation.
Credit Card Help! or Bankruptcy? Need lots of advice! $47,000 debt...can%26#039;t afford bill....HELP!!?
i understand. you wil not want to do this but i agree with the other user. sell the house, pay off debt. then buy another home. my husband and i had about half that much debt. we sold our house of 5 years, paid off everything, moved into an apartment and we are now saving money to buy or build the house we want. this has been the ultimate sacrifice for us but we had no other option. we two had a 2nd mortgage and we too could not get refinanced even with 50K in equity.
i couldn%26#039;t sleep at night because of the worry. now, worry free!
you have to do it. our motto %26quot;it%26#039;s only temporary%26quot; but wow do we feel the relief of being debt free!!! debt suffocates you!
good luck.
Credit Card Help! or Bankruptcy? Need lots of advice! $47,000 debt...can%26#039;t afford bill....HELP!!?
Bankruptcy does not seem a viable option in this case. BUT you need to change your ways first..You have overspent, never saved for a rainy day and now the %26#039;Chickens have come home to roost%26quot;.
Cut back on your spending now....No vacations, no new clothes , only the basics for survivial. No eating out....Look at what you make and what you spend Hmmm..
The house is a problem as it will go in the bankruptcy but perhaps your family can come up with the mortgage. If not I would suggest you go to the bank and see what they are willing to do..New laws on bankruptcy, as this lawyer explained, are now working against you. Do refinance your house, get a good fixed rate, pay off all your credit cards, and please stop spending, SAVE SAve SAVE...Do not spend the money you get for your refi, get enough for credit card pay offs and 3 months mortgage payments...Do not touch the money for anything else, if you have a care payment then see if there is enuf equity to pay that down.
You are typical of people who want everything now..Never look at tomorrow and I feel for you ..This is a hard lesson but one you have to learn or you will loose everything. So it is up to you.
Make a list of what you owe
Ask for referrals for refi (Country wide) is lending
Do not pull all your equity out of your house
Pay off your debt
Go without
Buy nothing new for a year..Yes you need food and esentials. Shop at discount stores, If you need clothes go to the secondhand store, Use coupons. You will be amazed at what you save, CAr pool. Have picnics, Rent a couple of movies, work out, improve your home and quit your present lifestyle.
Good luck you will need it, you and a few million others in the same boat and it is sinking fast..
Credit Card Help! or Bankruptcy? Need lots of advice! $47,000 debt...can%26#039;t afford bill....HELP!!?
I highly recommend Dave Ramsey. I have listened to his show for years on the radio and he is by far the best when it comes to debt management.
Here are a couple of links to him.
http://www.daveramsey.com/
https://www.mytotalmoneymakeover.com/
Please don%26#039;t let these people answering your cry for help tear you up. They are in debt as well. They are in the same situation. They just don%26#039;t realize it YET. Don%26#039;t worry about the criticism they will espouse. Worry about getting a controll on your debt.
You can find dave Ramsey on the radio in your area here
http://www.daveramsey.com/radio/home/ind...
Credit Card Help! or Bankruptcy? Need lots of advice! $47,000 debt...can%26#039;t afford bill....HELP!!?
You can%26#039;t file bankruptcy and need to change your spending habits yesterday!
You cannot borrow more money to fix this problem. You and your husband should get part time jobs to earn more money. You should easily be able to make enough money to work on your debt by waiting tables, delivering pizza, or anything else that pays in tips.
Don%26#039;t borrow more money! That is why you are in the problem to begin with.
Good luck.
Credit Card Help! or Bankruptcy? Need lots of advice! $47,000 debt...can%26#039;t afford bill....HELP!!?
If you could possibly find someone to refinance pulling out part of the equity, like someone else suggested.
i understand you don%26#039;t want to sell the house, another option may be to lease it for a year maybee your sisters or you know someone who your family would accept. Do a year lease and you lease a very modest apt and save and try to catch up.
good luck. I know financial problems and so depressing and trying. Hope everything works out for you.
Credit Card Help! or Bankruptcy? Need lots of advice! $47,000 debt...can%26#039;t afford bill....HELP!!?
You can submit your issue in the following website and a lawyer will contact you within 24hrs. Don%26#039;t worry about their charges, Its only $1/day. So you are getting what you want in just $1. I think this you can afford. Here is the link
http://www.usalegalcare.com/Bankruptcy.h...
Good luck
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