My husband is on disability and with his car loan, medical bills, credit cards, etc. his debt is approx. $15,000.
I work full time and he is receiving disability payments and we want to take care of it but we can't afford all of these monthly bills. What can we do???
2007-02-01 06:36:53 · 7 answers · asked by mlosolla 1 in Business & Finance ➔ Credit
Filing for bankruptcy should be the last resort. That stays on your credit report for 10 years. You should contact CCCS. They will help you combine all your bills and you pay a small monthly fee for all. ANd all they will stop all the creditors from calling.
2007-02-01 06:52:27 · answer #1 · answered by Pumpkin 2 · 1⤊ 0⤋
If your guys credit is still in pretty good standing and you own a home, I would consider looking into refinancing your home. If you have the equity in your home you would be able to include all these debts at a much lower rate. You will notice a huge monthly payment savings per month, and only have one payment every month.
Or you could get a second/ home equity loan behind your current mortgage. The rates are generally a little higher, but prob. still lower then the rates on the debt you have know.
My last resort would be to file a chapter 13 bankruptcy, this will kill your credit and costs a lot of money. You have to a pay the lawyer and trustee.
Good luck, need anymore advice feel free to contact me...
2007-02-01 09:09:49 · answer #2 · answered by Anthony P 2 · 1⤊ 0⤋
You have different options available to you. Filing for bankruptcy is one. You could get a loan through the bank to cover the amount (provided you have collateral) making just one payment you'd be making a month a likely a lower interest rate. You could do something similar by going through debt consolidation. Word of warning with that though - many will charge a nominal fee a month that really adds up in the long run. It is what I chose to do 4 1/2 years ago with a debt higher than yours and the company has charged me $35 a month which has definitely added up over time. However, I have managed to reduce my debt substantiallly during this time and definitely improved my credit rating.
2007-02-01 06:46:44 · answer #3 · answered by Sunidaze 7 · 0⤊ 0⤋
Mary O's idea is terrible. You do NOT file bankruptcy for only $15K in debt. The fact is that you need to do two things. 1. Get a second job. EVERYTHING you make from this second job has to go to your debt which you will be able to pay off the fastest. Once you pay it off you then take what you were paying on it BEFORE getting this 2nd job, AND everything you were making in your 2nd job and pay off your 2nd lowest debt, and work your way up the tree.
The 2nd thing to do is take out some zero interest credit cards with zero fees to transfer and transfer your high interest rate over to those cards. Be VERY carefuly though not to transfer too much because if you don't pay it off the interest rate will go through the roof when the introductory period ends.
The key though is the 2nd job.
2007-02-01 06:48:44 · answer #4 · answered by AirDevil 4 · 0⤊ 1⤋
If you are a homeowner, fill out the free form at
www.totaldebtsolutionsllc.com
Likely someone from their loan officer network will contact you and there is the possibility of settling out some of the debts for 50 cents on the dollar. Good luck.
2007-02-02 04:23:57 · answer #5 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋
Consolidating debt is an ideal way to reduce your amount and tenure of debt. You make a single payment to one lender on a certain date and this will help you clear off the debts faster. But the fact remains that debt
2007-02-01 15:36:34 · answer #6 · answered by stew w 2 · 0⤊ 1⤋
You can file for Chapter 13 and that allows you to pay off all the bills because they combine it into one payment.
2007-02-01 06:40:06 · answer #7 · answered by Mary O 6 · 0⤊ 0⤋