What to do about debt, any suggestions?

Question

My boyfriend makes roughly 45k. He has about 20k in debt including 2 car loans and mainly credit cards. He is never late or in bad standings with any of these loans and cards and usually pays over the minimum. We would like to getting in the process of purchasing a home next year, so he's trying to eliminate some of this debt because he learned he's only at average with his credit score. He was thinking of doing this via a personal loan and pay off everything and then only pay the loan. However, he's tried three different places and everywhere tells him no. I'm not understanding the problem and don't know what else to tell him to try? Or what to say to keep his head high that our dream of owning a home will come true? Will it help any if we do a loan together? Combined we are at 55k and I only have meger credit because I only have one card because I havent established credit I can't really obtain credit, but would I help him out any?

Yes he has two cars - one is for work and the other is not. I know, I know but he does nothing but drive for work and until he came up with this plan he was buying a new car almost every year because of how much beating the cars were taking. So he bought an everyday car and a cheap work truck that he's basically paid off and the other he is almost there. Why sell the other car when he is almost done paying it.

Answer 1

He has way too much debt, and he should work to get rid of it as fast as he can. The two of you should aim to be debt-free as much as possible.
http://www.debtorsanonymous.org/
http://www.debtproofliving.com/
http://www.daveramsey.com/

You might find it helpful to watch this reality t.v. show together:
http://www.slice.ca/Shows/ShowsPage.aspx?Title_ID=93097

I'm assuming you're planning on getting married before you buy a house together (I hope so!). I strongly suggest you increase your earning ability, even if you plan to be a stay-at-home mom. In case of emergency, if he loses his job or becomes disabled, it will be EXTREMELY helpful for you to be able to keep the family afloat while he is job-hunting (if he is able to return to work).

Also, it is a sad but true statistic that women typically outlive men, so one day you may need to support yourself and possibly your children, by yourself. Go for higher education; it will pay off!

Answer 2

First of all, if he can't get a loan because of the amount of debt, then that should be a big red flag to you not to merge your finances with his. You are only asking for trouble. The only way out for him is to start paying things off. You say he has 2 car loans - does he have 2 cars? Does he need 2 cars? Sell one and pay down some of the debt. And stop charging on the credit cards. Learn to live on a budget without depending on the cards.

Answer 3

Sell BOTH cars and get an old ugly car to drive. Keeping it on the road will ALWAYS cost less than buying new cars. You are nowhere near ready to buy a home. You should only buy a home when you meet 3 criteria. 1. You have ZERO debt. 2. You are MARRIED. 3. The payment on a 15 year fixed rate loan are UNDER 25% of your take home pay.

Answer 4

I would get ride of the nice cars first off, sell them if you can get what it would take to pay off the loans. Then buy beater cars with cash. That will save a HUGE chunk of your payments each month. Once the cars are gone, then you can take the money that you were paying on the cars, and apply that to credit card loans. I used to work in auto repo, I can tell you what a huge waste of money a car payment it.

Contrary to popular belief, you can get out of debt by getting more debt, the only way to get out of debt is to pay cash for everything, and make payments on the side. you are having trouble getting a loan to pay off your debt because you don't have any collateral to secure the loan with.

So like I said, get ride of the car payments, and use that money to pay down your other debt. it isn't the nice easy answer that everyone is looking for, but it is the truth.

Answer 5

Here is a good option to check out. This company has plenty of free information for you. This company has been featured on national TV news casts (not infomercials) and published in several magazines such as Newsweek. This company is where people lend money to other people. Good Luck.

http://www.prosper.com/join/heyhobbs

Answer 6

Hi,

I used "Credit Solutions" to settle my debt.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:
http://shortlinks.co.uk/4cl