I am in such deep debt...?

Question

my husband and I are 26 years old, have been married for 4 years now. Own a home, a camper, and a leased truck. We have lots of credit card debt, in the area of about $7,000.00 maybe a bit less. We have a truck lease, our camper payment is 250 a month, plus a home equity loan that is like 460 a month....we did work on the house. Needless to say, we fork out MORE than what comes in. we have awful credit now, because we cant keep up with the bills, creditors call, cancellation notices come in, we are gagging....We are young, and in the past few years spent stupidly, we are not ashamed to admit that. we have learned our lesson for sure, and DO NOT do it any more...problem is we are going to suffer for YEARS because of this. We are now expecting our first child. We NEED to consolidate EVERYTHING or somehow get out of our mess..Bankruptcy is NOT an option, we spent this money we will pay it back. Please just tell us the BEST consolidation companies, with good rates, that wont scam us.

Answer 1

Good idea to payback instead of going bankrupt

There's a few links...

...or look on google

Note: I made a consolidation with a Bank an I saved a lot in troubles.

But it will cost you a lot, since your credit score is bad, so the interest rates will be. But it's the only solution !


Good luck !

I don't know how much free time you have, but considering working from home a few hour a week is a good idea. adSense made me out of debts !

Answer 2

You're very right that you need to do something about the situation you're in right now. But you've already started on the right track by admitting something needs to change, that you weren't spending responsibly and, most of all, that this is your debt and you'll take responsibility for it now. Good for you on that!

As many people have said, if you don't need the camper, sell it. Get at least what you owe on it if possible, and for anything extra, immediately put that towards your other debt.

As to which debt to put it on, it depends. See if you can get your credit card debt transferred to a card with a 0% introductory rate (just make sure that the interest rate after the offer ends isn't more than the rate you have now) If you can do that, put the extra money towards the home equity loan. However, if your credit card interest rate stays much higher than the home equity loan, you're probably better off paying the extra to that.

What you don't want to do is roll the credit card debt into the home loan. You never want to put unsecured debt into your house.

Also, talk with whoever you have the truck lease agreement to. Leases are almost never something you would want to sign up for because you'll -always- be in debt (because you'll never own the car) See if there's any way to end that and just go to an user, cheaper car.

Just remember, if you're willing to put the effort into it, a debt consolidation can't do anything for you that you can't do for yourself. And you don't have any fees to do it. But what you might want to look into is a lot of times banks or credit unions you're a member of will have free services to help you with budgeting and knowing more about debt.

Good luck!

Answer 3

Consolidation Companies tend to be ripoff joints.

Contact

Consumer Credit, they are truly a non-profit debt management entity.

We were in the same boat, I avoided contacting anyone, as I did some of my own research.

We borrowed money from a relative for a fixed term, and consolidated a bunch of debts. We cut up credit cards and use only cash or debit cards.. We've paid down closed to $50000 in consumer debt by doing this. The interest rates on credit cards become everyone's biggest problem.

If you can get 0% cards, play the card shuffle for a couple of years, but ONLY use the cards for consolidation.

Reduce expenditures. Perhaps sell some items that have value but will reduce payments quickly. Find a cheaper vehicle.

We are getting our heads above water for the 1st time in a long time.

Answer 4

Okay, if you want to consolidate-talk to your bank or Credit Union. Often they have financial advisers and planners that can help you at little to no cost, unlike other "Credit Counseling" agencies. Also, from your situation it does not sound like you would even qualify for a Chapter 7 bankruptcy-total liquidation of assets, however, you could talk to a reputable bankruptcy attorney about a Chapter 13, which does allow you to PAY BACK debits under a payment plan to a trustee. It does cost a bit (Normally around 2-3 thousand dollars in most states) but can help you get back on track sooner.

Good luck

Answer 5

See if you can trade in your vehicle early and get a used vehicle.

See if you can sell your trailer for at least what you owe on it.

See if you can move into a less expensive house.

DON't do a debt consolidation, you think your credit is bad now? It will be worse.

If you can't increase your income, then decrease your debt - that is the only way, or you will stay on this merry go round for a long time.

Also, get rid of bills you don't have to pay. Cable, cell phone (or land line), satellite TV, any subscriptions, and put that money directly into paying down your debt.

When the baby comes, you'll want to spend again, new stuff - see if you can get used crib, etc., and don't be ashamed to shop goodwill or salvation army - if you want a good life for your child, scrimp now.

Answer 6

plan to be in debt for along time then honey.
My husband refused to do bankruptcy. I was working 85 hrs a week and so was he and it was not making a difference, working long hours and dealing with the phone calls and notices were making me mentally and phyiscally sick.
for 6 yrs we tried paying it off, we had 2 car payments, rent credit card, medical, you name it.
Finally one day I was like I cant take it anymore! Im not ashamed to admit, but we filed for bankruptcy, also the creditors charging 23 percent for interest rates are rapist as well.
3 yrs after declaring we bought our first home and if we hadnt done the bankruptcy we wouldn't be in our home today. We saved up 10k in just a year to put down on a house. we are debt free except one car I had to get when I got pregnant again and needed a bigger car and our mortgage, thats it
But we felt the way you all did, we'll pay it back its our fault. WELL we tried for several years and we just couldnt get out.
So say we are evil cause we filed but I dont care. WE learned our lessons and dont own but one credit card for emergnecies incase something in the house needs fixing
good luck

ps we also did the consolidation thing too and it didnt work out to well

Answer 7

Well, the first thing we are all wondering is why you didn't sell something when it became a problem. But that is not helping you. Look, you have a camper--sell it. Who cares if you use it or not, you need to get out of some of your debt, so sell!!!. Try not to lose your house. Contact a debt counselor who can assist you. There are many non-profit agencies who can help.

Answer 8

I am going to be blunt:
1 Get a second job...both of you. And quit spending.. that's the biggest thing. Consider a third job- for short term. (its very hard, I know, but it will help you a lot).
You need to have money for the baby...
2 Sell stuff. Sell your truck and/or camper. Get a used Civic. Less gas and cheap.
3. Sell more stuff. Sell everything you don't use. Sell it on ebay- garage sale-whatever.
4. Buy your baby cheap, used, and ONLY if you NEED it. You can buy cheap baby stuff at thrift shops, craiglist, ebay.

Answer 9

First they get right into a debt of like $5000, then they acquire extra mastercard approvals interior the mail. They use them to purchase further and extra stuff. nonetheless, extra mastercard approvals come interior the mail. the rationalization is that the credit bureau's can freely supply out your person counsel, until you assert in any different case. a lot of those credit enjoying cards have severe pastime and annuals too. it fairly is rather basic for youths and previous human beings, who do not understand what they are doing, to get their palms on credit enjoying cards. i think of that there might desire to be a regulation it which the mastercard businesses might desire to make absolute particular that the guy might have the potential to repay the credit enjoying cards and modern-day debt. in the event that they don't, and not something replaced (like the persons job), then they might desire to take it as a bad investment. isn't that how the mastercard businesses are meant to be making their money, pastime.

Answer 10

Try selling the camper, it will make you some money and get rid of one of your bills.