A long story but for everyone's sake I will try to make it short. I currently have roughly 17-20k in debt on cc's and it just seems that I am getting nowhere on them. I really considered filing chap 7, but I know if I could just roll everything into one payment I know pay it off. I know Navy Federal does 95% Home Equity loans, but I didn't know what their credit requirments were? Do you guys think it is a good idea to roll that debt onto your home? Or should I just take the dive into bankruptcy and restart everything?
Thanks for any insight you can provide!
Filing BK over $20k is like hitting a fly with a sledge hammer. It is the wrong tool to use and will cause more damage than help.
Don't get me wrong, there is nothing wrong with filing BK in the right circumstances. But $20k worth of debt doesn't warrant a BK when you can work your way out of it with a plan.
Also, moving $20k to your home is a receipe for disaster. Go to the Dave Ramsay website for ideas on working your way out of this $20k. It has an added benefit of teaching you methods to stay out of debt.
Can you pick up a second job or sell some items around the house to help make a dent in the debt?
Completely agree with StartingOver, although it's hard now, it will be uncomfortable enough to keep you from doing it again, wrapping it up into a mortgage is the easy way out. You can do this, cut things out, be uncomfortable. I also don't have a problem with BK, but for 20k, it's not worth it. Love Dave Ramsey as well, and a Suze Orman fan. You know the saying "Nothing taste's as good as skinny feels"? Well nothing feels as good as digging yourself out of debt and staying out.. don't live beyond your means and you will live better than most.