Waist Deep Debt......?

Question

My husband and I are in deep debt. We talked to a consolidated but we didn't want to refinance our home and start all over again on a 30 year mortgage. He's been trying to find a part-time job but no one has called. I work on the weekend cleaning but I have a partner, therefore the money is split.. Do you all have any suggestions on what to do? Do not want to file bankruptcy.

Answer 1

Do you have a budget? Without this, you will NEVER get out of debt, because you don't know where the money is going. Track ALL of your expenditures (even the $1.00 spent on a soda from the machine) for at least a month. This will allow you to see where the holes are in your financial boat.

Next, start taking steps to plug those holes - stop eating out, watch what's on TV instead of going to or renting a movie, etc. Many people are AMAZED at how much they spend to eat out (including the chips, soda, and candy bar at the convenience store when you fill up the tank). And DON'T use credit cards ever again. Start building up a small emergency fund ($500-1000) so you don't have to use credit cards when (not if) an emergency comes up (because they WILL come up).

Write down all your debts, the minimum monthly payment and the interest rate. Put them in order from smallest to largest (unless you have one with a very high interest rate, then it goes first). Pay as much as you can (until it hurts) on the first debt until it is paid off. Then, take THAT payment and ADD it to the payment on the next debt. Keep doing this until you are free from the grip of debt.

Getting into debt is SO much easier than getting out. But if you are really determined to get out, you will work at it with gazelle-intensity. See if the local library has either of Dave Ramsey's books ("Financial Peace" or "Your Total Money Makeover"). His advice is both simple and practical. He has helped thousands (including us) become debt-free.

Answer 2

My husband and I are in a similar situation. My uncle recommended that we check out Dave Ramsey, so I did. He has written a book called The Total Money Makeover that is amazing.

It's hard work, but it sounds like from the looks of what you are doing you guys are willing to do the work. So far we've already paid off about 4K in debt. It helps you get focused and get some momentum on getting out of debt.

I wish you the best of luck!

Answer 3

Dont opt for bankruptcy: Consolidate ur debts

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 .....

Answer 4

Hello There,
Im sorry in advance for the long answer, i hope this clarifies things for you...

One of the most common misinterpretations i hear when it comes to refinancing is "i dont want to start over on a new 30 year mortgage..."

Firsxt of all, the average homeowner refinances or sells every 3-5 years... NO ONE stays in a 30 year mortgage for 30 years...

My point is that you can refinance and not necessarily go into a 30 year mortgage.. there are other options..

The other thing , which SHOULD be MOST imoprtant to you is the subject of your question..

"WAIST DEEP IN DEBT!!!"

If you are waist deep in credit debt, then its safe to say that the way you are CURRENTLY financing isnt workign for you.. It doesnt mean that you cant be helped... you ahve lots of options...

If the way your finances break down is leavin gyou "waist deep in debt:" then you NEED TO START OVER AND REANALYZE THINGS..

I speak from experience.. I am a licensed mortgage loan officer of 13 years and have helped hundreds and hundreds of homeowners re-structure their bills to make life and finances more comfortable..

The poin tis that even though you are a few years into your current mortgage, it is doing NOTHING fo ryou because yo uhave so much debt..

I fyou consolidate your debt into a new 30, 40 or even possibly 50 year mortgage, your payments will become much more manageable..

The main thing people i think jsu tdont understand about a mortgage loan is that YOU DETERMINE HOW LONG IT TAKES TO PAY OFF YOUR MORTGAGE!!

I have showed people how to take a 30 year mortgage and have it paid off in less tehn 10 years..

Its actually fairly simple.. The thing is you need to take care of the things that are currently holding you back..

The debt that you are waist dee4p into is what is hiolding you back,...

As im sure you already realize, when you send extra money to your mortgae, it is applied to PRINCIPAL ONLY.. meaning no interest is taken out..

So, say you consolidate your debt to a new mortgaeg and are saving $500-$800 monthly...

Takie a portion of your savings and "re-invest" it back to your mortgae... Withion a couple years you will be on the fast track tohave them ortgage paid off in less then 15 years,..

The poin tis that right now, you cannot send extra money to you rmortgage becuase you have an exuberant amount of credit card debt currently that you are obligated to pay each month..

Lets look at the other benefits of starting over on a new 30 year mortgaeg..

On a mortgage you pay "simple interest" Meaning you only pay interest on what you owe.. On credit cards, you pay "compounded interest" This is what the credit card companies put in the fine print...

Compounded interest mean you pay interest on top of interest on top of interest that you have already paid for... You end uyp paying thousands more in interest then you should be paying!!

By consolidating the debt into yourmortgaeg, you are now convertin gthe "revolving credit card debt" into "secured real estate debt" This means you are now going to pay "SIMPLE" interest on ALL of you rdebt, not jsut the mortgage...

On top of that, revolving credit card debt is TERRIBLE for your credit.. The longet you carry it, the moreyour credit score will plummet.. By converting the credit cards to real estate debt, instantaneously your credit score will rise dramaticly!!

Also, as you know your mortgaegf interest is 100% tax deductible.. Credit card interest is NOT.... So again, by convertin gthe debt, you now have that much more interest that you will pay regardless that is tax deductible...

For all these reasons and so many more, it would be mroethen beneficial for you to refinance..

Think abou tthis as well. .Once you refinance to pay off you debt, imagine what your credit worthiness and financial situation will look like 2-3 years down the road...

Imagine not having any credit card debt on your credit, only having 1 motgage.. On top of that your credi tscore will increase most likely over 100 points in as litttle as 1 year as long as you dont go back to using credit cards.. Most importantly, when consolidating, you WILL pay much less per month.. I always suggest taking a portion of your savings each month and put them into a savings account that can start to gain interest FOR YOU as opposed to against you like your debt is...

I think you will be shocked to see 2-3 years down the road you will have great credit, no credit card debt, and money saved in a savings account.. This is where you will qualify for the rates you see on tv commericals and on billboards.. These rates are only offered to ideal candidates.. If you take the right steps NOW, you could easily be an "ideal candidate" in as litttle as 2-3 years..

Again i speak from experience for i have sucessfully helped many borrowers with a 2 step credit clean up option many times in the past...

What i always stress to my clients is dont just take my word for it, let the numbers speak for themselves.. Allow me to put together an analysis for you, i will provide everything to you in writing and you can see for yourself how much better of a situation you truly can put yourself into... Eve nif you start over on a 30 year, that will be the last thing you wil be think about...i guarantee it!

I wish you the best of luck!!

Jason Fry
Licensed Loan Originator
Treehouse Lending
312-239-7126
[e-mail]

Answer 5

you could try finding a full time job, and help out too.

Answer 6

STOP BUYING S**T !!!!!!!!!!!