At my breaking point - Help Please

[Anonymous]

I am currently at my breaking point and no longer know what to do. I have considered bankruptcy but my mother in law says not to file and would be better to do debt consolidation. 

I am at the point of no longer being able to afford my minimum payments. Which bites because i have no missed payments or anything and would hate to lose everything i worked for. The other thing is, i would like to get a house next year. 

Here is my breakdown:

All cards maxxed with 18-23% interest and 22.5k debt. I would end up burning Discover, Chase, Cap1, Citi and i worked so hard for the past 6 years. I have 70k in student loans that are deffered till i graduate. 

Husband has a 5k loan with a 36% interest rate and we owe the full amount since it was taken out last month. Its through Avant and we were desperate.

Owe my sister 15.5k with her credit cards and her APR is 18%.

Any suggestions on what i should do? Should i do a debt consolidation program? Bankruptcy? I don't want to lose my cars, i have 1 loan and husband has 1 loan. Should i attempt to negotiate with my lenders? if so how do i go about this? The big thing is obviously the interest rates but i would like to avoid damaging my credit and possibly the relationship with my lenders. However if it comes down to it i would prefer to keep my perfect payment history than relationships. 

[Anonymous]

First of all .... Take some deep breaths. This is tough stuff. Been there for sure. Definitely call your creditors BEFORE you miss any payments. Make a list of your creditors and the interest rates/balances for each account. Be honest with yourself about what you can afford to pay and still live day-to-day (though very tightly). Then call them and explain that you want to be proactive about this tight time -- ask them what they can do to help. They'd way rather you didn't miss payments. Your credit score may well take a hit -- but it will be so much worse if you let it all go. Collections, etc are deadly. Good luck. You came to the right place for support and advice. This forum is amazing.

[Anonymous]

Are either of you employed? Anything extraneous you can cut like cable?

[Anonymous]

Yes both of us are working. We have cut everything that we possibly can. Currently our utilities are the bare minimum we can get which is rent, electric, and cell phone.

If i call my lenders and ask if they can do anything or assist with a promo. Will they frown upon me or mark anything on my credit if i continue on time payments?

[Anonymous]

They won't grown. They'd rather have money. Can you refinance your vehicle's to a lower rate? Why did you take a loan at such a high rate? Any chance of reaching out to your bank or credit union and being able to get a loan to pay back the other one at a better rate?

If you default it will be at least a year before you will be able to.purchase a home. With bankruptcy it's usually two years past discharge.

[Anonymous]

Because we were desperate and needed money fast, Had to go to the vet, and carecredit was declined. I did try my credit union, and they said i need a 730 before they will even look at me. I'm at 650 TU due to high utilization. Can't refinance yet at a lower rate i don't think.

Our car loans are manageable for now at 7% but plan on refinancing when our scores are better. So would you recommend i ask my lenders for any possible promos? What do i say though? I am trying to pay everything but need some assistance, is there a possible promo to help?

[Anonymous]

You mention a vet. Did you incur or are you currently incurring costs related to pet care?

[Anonymous]

Incurred last month, dog got a hold of some food he shouldn't have, and needed a blood transfusion from my understanding. It was quite a procedure that cost over 4k. 

[Anonymous]

I think you need to prioritize your expenses. Maybe get alternative accomodation to reduce rent. And not to sound cold, thats a very huge bill for the pet. Maybe let go of the pet.

[Anonymous]

love animals and i have few but you are not in a position to spend 4k right now, look out for you first.