Money Problems?

Question

We have maxed everything out and now are trying to get things under control. We have about 50K in credit cards, 30 in cars, and 110 in a house. Our home is only worth 128K so we dont have enough in equity. Suggestions on how to fix this or how you have?? Bankruptsy isnt an option we want to even consider. We spent the money and are going to have to deal with it.

Answer 1

Read this article called "The Most Effective Way to Pay Off Your Credit Card Debt"

http://www.fastcreditcardoffer.com/article/the-most-effective-way-to-pay-off-your-credit-card-debt.aspx

BTW, I commend you for not wanting to take "the easy way out".

Good luck.

Answer 2

I strongly recommend "The Total Money Makeover" by Dave Ramsey. It is a New York Times Best Seller, and is available at any book store. He has a time tested, proven system to pay off debt and build wealth. This is not a gimmick. How well it works depends on how dedicated your family is to turn your financial lives around. In the meantime, I will offer a few suggestions: 1) Cut up the credit cards, and promise God, or Allah, or whoever you worship that you will NEVER, EVER get another credit card again! 2) I would think about selling the cars that you have owe money on. You will probably not get what you owe. Take a loan from the bank for the remainder, and get rid of that debt. Pay cash for a $1,000-2,000 car, and drive it. Call it your "get out of debt" car. 3) Get on a written budget. Sit down with your significant other, and put everything on paper. If it doesn't make it on paper, you don't buy it. Period. 4)Have a garage or yard sale.
The important this is that you get started on a plan, and stick to it. Get the book that I mentioned, and follow the plan it gives. It will work for you. Good luck.

Answer 3

First of all, stop borrowing money. Quit using the credit card immediately. Skip Christmas and no more presents for any event. Stop getting the newspaper and cancel your cable Tv. Disconnect your home telephone. Avoid unnecessary shopping, stay home more, Consider on getting rid of a vehicle. Consider on getting an apartment. Get a part-time job. Eliminate temptations. Start and stay on a budget.
Do you realize how much interest you would pay on 50k in credit cards? Pretend that the interest is 7.99%, you would pay approximately $3,995 per year. And that is just interest. You have to take some drastic measures now and stick with it for the next several years.

Answer 4

Step 1: You NEED a WRITTEN budget NOW.
Step 2: SELL the cars and get something CHEAP.
Step 3: With no clue about your income, I can't determine if you should sell the house and rent something cheap.
Step 4: At least one of you needs another job.
Step 5: Put every spare penny toward paying off the debts.
Step 6: If you see the inside of a restaurant, you had better be clocking in to work.

Answer 5

The answer is stop using a credit card, and live honestly.Look at the credit you owe, and get stuff voluntarily re-possessed.You should be able to make a deal with the creditors.You may go Bankrupt anyway, it might be out of your hands.

Answer 6

In 2000, I found myself in almost exactly your situation, due to a divorce. I, too, decided to do the "right thing" by not being a "deadbeat" and pay everything off. Trouble is, everyone wants theirs first, so what I got for my trouble was incessant harassment, got sued twice, and a string of lates on my bureau that has me a 562 after I finally paid everything off, 7 years later. So now I pay more for everything from cellphones to insurance. Do yourself a big favor-file a chapter 7 and when you get your fresh start do it right this time. Don't reaffirm anything. Give up the house,cars and toys. In 5 years, you'll be glad you did.

Answer 7

You might not have a choice but to file Bankruptcy. Because you might just be forced to. If you do take that as a life lesson and don't make the same mistake again!!

Answer 8

I strongly encourage you to listen to this pre- recorded conference call.

[phone] access code 3156406#

for live conference, call..[phone]
access code 3156406# held every Wed. @ 6pm Eastern

my contact info is [phone] Dana

Answer 9

Try this site: http://snipurl.com/1qf6h it can make you good money and it is easy to do. There are no fees and it pays out every Friday. It is one of the few work at home websites that has made me good money consistently.

Answer 10

Have you talked to a financial advisor?