My husband used to make really good money and we had a lifestyle according to that. Well now we are doing alright but I cant pay any of my credit cards and I can't seem to get my mortgage caught up. My car payment is behind. Now I know I can pay all my bills if everything wasn't past due with late fees etc. Someone told me about chapter 13 but when I talked to one lawyer they said they can make the unsecured debt go away but I would have to pay $500 on top of my current bills that are secured and my living expense. I don't know that I can do that. If it was 100 or so maybe but 500 I think I could settle with the credit card people for less. Also if my credit wasn't so bad because my husband was on workers comp for 2 years I would just refi my house and pull the money out of there and pay another 200 on my mortgage. Not sure if this is enough info but I am looking for some advise. I guess the lawyer was saying that because we have equity in some items that is screwing us.
2006-07-07 16:26:03 · 3 answers · asked by Knock Knock 4 in Business & Finance ➔ Personal Finance
I would agree with the first answer. Communication with your debtors is a must. Cut back expenses. Not saying that you haven't, but a few examples are, computer, is dial up connection less expensive that broadband? How often do you eat out. Do you really need "X" number of cell phones. Just a few dollars in cut backs, will ad up quick. Any boats, that are not needed. Get back to basics, food clothing shelter. There is also credit agencies that can help you communicate with your debtors. However, they charge a fee. Best to you and yours
2006-07-07 16:45:31 · answer #1 · answered by G. M. 6 · 0⤊ 0⤋
You are caught between a rock and a hard place. It sounds like you are still bringing in enough money that a lawyer thinks that the courts are going to ask you to pay $500 a month on them. I would first talk with your credit card accounts to see if they will help work with you on making smaller payments if you cut up the cards. For the auto and the mortgage, they usually will move to the end of the loan the missed payments to prevent late fees. When I was in a similar situation, I found out that by keeping open communication to all parties allowed me to keep trying even though we were floating on thin ice. Depending on how soon your husband will be able to return to his job depends on your options also. If you do not work, than you might think about finding a job to help out with the bills. The last bit of advice I would give you is to reduce your lifestyle to below your current standard until you are clear of debt.
2006-07-07 16:35:49 · answer #2 · answered by andy 7 · 0⤊ 0⤋
Sounds like you need more than advice. You first need to understand debt management and budgeting strategies and techniques that are realistic and tailored to your situation. Then you need to develop a plan and execute it with above average discipline and tenacity. Try yahooing 'unlending' to learn methods of unlending debt.
2006-07-07 17:46:34 · answer #3 · answered by selfmanagement808 3 · 0⤊ 0⤋