Debt help credit card?

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I have the following liabilities: Mortgage Wells Fargo $ 62,000.00 $ 25,000.00 Citizens Auto Finance-back-3 Consolidation loan ZahlungenDebt $ 18,000.00 credit line GE Money Credit Card Chase 8000.00 $ 5500.00 Desktop 3 ZahlungenSears back card 1600,00 $ 2 ZahlungenJC Penney card $ 1,200.00 Behind-4 ZahlungenWal Mart card $ 1500.00 cash back behind a natural gas help to 4 months! I’m only $ 45,000 per year before taxes!

10 Comments
  1. Reply
    RBillion
    May 4, 2011 at 2:40 am

    1st pray for Godly wisdom and insight. My recommendation would be that if you have equity in your home, refinance and consolidate a lot of those high rate cards and then cut them up! Run from credit cards never to return using them.

  2. Reply
    Feeling Mutual
    May 4, 2011 at 3:30 am

    You can get probably get a free interview with a bankrupcty attorney.

    Keep paying on your mortage and car payment (if you want to keep the house and car).

  3. Reply
    bkwrm006
    May 4, 2011 at 4:11 am

    You need to contact Consumer Credit Counseling so that they can help you create a budget and negotiate pay off for your debts. Your credit card balances show why debt consolidation loans is usually not a good idea because they don’t teach you how to live within your means.

  4. Reply
    MommaBear
    May 4, 2011 at 4:58 am

    What about a Consumer Credit Counseling.
    They work with the credit card companies and they atleast get your payments lowered.
    Plus they help you get back on track.

    Make sure you keep paying on your mortgage and auto loan, otherwise you will lose your house and get your car repossessed.

    Consult with a lawyer about filing for bankruptcy.
    Good luck

  5. Reply
    zygote222
    May 4, 2011 at 5:58 am

    A simple calculation shows that you can’t realistically pay off this amount of debt on your income. That gives you three options.

    1. Contact your creditors, explain your situation, and try to get them to agree to stop charging you interest in exchange for a payment plan to pay off the principal. If you can allocate 1/3 of your income to debt payment and live off the other 2/3, you would be out of debt in about eight years. Remember, though, that this won’t do any good unless you get a realistic payment plan and then stick to it.

    2. Get a second job that pays enough to live off while you’re paying down debt. It looks to me as if about 100% of your current income would have to go to debt payment, unless you get some relief from your creditors, as in option 1.

    3. Declare bankruptcy. With your debt, this may be the most realistic option. A Chapter 13 bankruptcy, where you make partial repayments and get forgiven the rest, might easily end up looking a lot like option 1.

  6. Reply
    mirrorinthesky
    May 4, 2011 at 6:20 am

    First CUT UP THOSE CARDS!!!!!

    Next you need to try and cut down the debt. If possible refinance and consolidate- though I see you have a Debt Consolidation Loan… so if you can, do it.

    If you can’t, of course pay the highest interest rate cards first. Or calculate the amount each card will cost + interest in the long run according to the amount you owe.

    Next sell your car, or give it back, obviously you can’t afford whatever type it is. Buy a used car -or even better, use public transportation, a bicycle, or your own two feet.. Who cares if the car is nice, when it’s costing you an arm and a leg?

    Next you have to CHANGE YOUR LIFE STYLE, as in cut your other expenses

    Take shorter showers- get wet, turn off water, soap up, rinse off.

    Turn off lights, go buy energy saving light bulbs. Don’t use heating for your house, if you’re cold suck it up and wear a damn extra sweater. Similar if it’s burning up outside, only use a fan, carry an ice pack, go around with light clothing.

    Learn to cook, at home, no exceptions. Brown bag your lunch.

    From all the store cards you have I’m guessing that you buy a lot of things- either pawn them, or sell them on ebay.com, half.com, amazon.com etc.

    Have a garage sale and get rid of your junk-it’s amazing what people will buy.

    Try to work overtime.

    If you live by yourself, consider getting a roommate to cut costs, or move into a cheaper place.

    Does this all sound stupid?

    It’s lifestyle choices that will help you from now on, even if you file for bankruptcy, because the choices you made were the ones that got you into the debt.

    If you buy stuff to keep up with appearance and to impress people, you’ll only look a fool later because they’ll be hearing about your bankruptcy.

    Make a strict budget. Don’t break it, or get frustrated and say F-this. It’s what will keep your from going into further debt, or in the future, from falling into the same cycle. Living within your means, it what will allow you to live comfortably.

  7. Reply
    Andy
    May 4, 2011 at 6:48 am

    Go to http://www.nfcc.org.

    They should help you figure it out; renegotiate your debts to lower the amount of interest you are paying; help you create a budget so you can pay off the debt and not get back into it.

    Do not fall for another loan consolidation or “credit counseling” by a for-profit company.

  8. Reply
    JB
    May 4, 2011 at 6:51 am

    Sell the house.
    Sell the car.
    Sell anything else you can think of. With all the credit card debt I’m guessing you have a lot of stuff.
    Get a second and or third job.

    Get on a written budget. List essentials first, then debt. Pay for essentials (mortgage, food, utilities, etc) before you pay any of the credit cards. I see you have a debt consolidation loan, so it’s not like you need to worry about your credit score anymore.

    Never use a credit card again.

    Reread what mirrorinthesk wrote then give that answer best answer.

  9. Reply
    Rella
    May 4, 2011 at 7:51 am

    I agree, Mirrorinthesky gave you a good answer.

    Here are some good websites for long-term help and financial education:

    http://www.bankrate.com/
    http://www.crown.org/
    http://www.daveramsey.com/
    http://www.debtproofliving.com/
    http://www.debtorsanonymous.org/
    http://www.slice.ca/Shows/ShowsPage.aspx?Title_ID=93097

    Also, as a way to get free household items you may need, join your local Freecycle group, in which people offer stuff they no longer want to some one willing to pick it up:
    http://www.freecycle.org/

    God bless! Good money management is a learnable skill, so don’t lose hope! It takes practice, discipline, and education, but you can do it!

  10. Reply
    grierGRIER h
    May 4, 2011 at 8:39 am

    If a person has accumulated a large amount of credit card debt due to multiple credit cards, the need for a proper counseling for credit card debt consolidation can’t be understated. Credit card debt consolidation counseling helps a person get vital insights into the facts that can help him get control over the credit card debt.

    Credit card debt consolidation counselors are experts with a good knowledge of debt management, budgeting and behavioral patterns of credit card holders. These services are vital for those struggling to manage their credit card debts. Also called credit counseling or debt counseling the credit card debt consolidation counseling brings immediate relief to a credit card holder.

    A person seeking credit counseling can get it from two types of organizations. The professional or commercial organizations, and the non-profit organizations. As depicted by its name or categorization, the commercial organizations charge money for their credit counseling sessions and consolidation help on the other hand the non-profit organizations offer free of charge services. Just because the non-profit organizations are free, it doesn’t undermine their quality of service. The persons associated with such organizations are thorough experts and have lived the trauma of being under credit card debt themselves and hence bring their vital experience to the credit card holder. Read more from: http://www.credit-card-gallery.com/article/353,Credit_card_debt_consolidation_and_credit_counseling_great_tools_to_get_rid_of_credit_card_debt

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