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Fixing this mess quickly

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Anonymous
Not applicable

Fixing this mess quickly

I desperately need help.  Through my own fault, I've messed up me and my husband's credit terribly.  We want to move in a few months, but I know that no one will rent to us with our credit in this shape.  I want to begin with my husband's credit since he is the breadwinner, then work on mine.  Our goal is to be able to sell our house and move in 3-6 months.

 

The biggest problem is that we have a mortgage that has 'rolling 30s' for the past 16 payments.  We just cannot seem to get enough money to make the extra payment to get caught up.  Essentially, we make the previous month's payment each month, so we are always a month behind.  

 

We have a combined student loan of $79k that has been deferred/in forebearance for a long time due to inability to pay the monthly payment, or because one of us was in school.  Right now, it has come due again, and it's 2 months past due.

 

Judgment for $3777 filed in 7/2014.  

12 open accounts, 12 closed accounts.

5 collections, 15 accounts derogatory.  

 

His TU Fico score is 594.  

 

Thanks in advance for any advice.

 

 

 

 

 

Message 1 of 17
16 REPLIES 16
Momof5
Frequent Contributor

Re: Fixing this mess quickly

My advice:

 

FWIW....Have a garage sale.  Sell whatever you have of decent value, up to and including any and all TVs, video game consoles, etc.  Cancel cable TV.  Change cell phone and service to be 'phone' only - no data.  Get a second job.  Get enough to get that mortgage current. 

 

Did you attempt to get the IBR program?  If your income is low enough, you may qualify for a much lower payment that you can afford.

 

What are the specifics on the CAs?  CA, OC, amt due, DOFD, etc.....

Starting Score: 472
Current Score: EQ:703 TU: 729 EX:737
Goal Score: 750


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Message 2 of 17
tiger_uppercut
Established Contributor

Re: Fixing this mess quickly


@Anonymous wrote:

I desperately need help.  Through my own fault, I've messed up me and my husband's credit terribly.  We want to move in a few months, but I know that no one will rent to us with our credit in this shape.  I want to begin with my husband's credit since he is the breadwinner, then work on mine.  Our goal is to be able to sell our house and move in 3-6 months.

 

The biggest problem is that we have a mortgage that has 'rolling 30s' for the past 16 payments.  We just cannot seem to get enough money to make the extra payment to get caught up.  Essentially, we make the previous month's payment each month, so we are always a month behind.  

 

We have a combined student loan of $79k that has been deferred/in forebearance for a long time due to inability to pay the monthly payment, or because one of us was in school.  Right now, it has come due again, and it's 2 months past due.

 

Judgment for $3777 filed in 7/2014.  

12 open accounts, 12 closed accounts.

5 collections, 15 accounts derogatory.  

 

His TU Fico score is 594.  

 

Thanks in advance for any advice.

 

 

 

 

 


It sounds like you're operating at a deficit monthly - that's not something that can be fixed without more income and/or significantly reducing your monthly living expenses. Especially if you're in any kind of rush (nearly a contradiction when it comes to credit repair). What is your employment situation, and your husbands?

 

Additionally, is there anywhere you can cut your bills? Use a cheaper cell phone service, cut cable, etc etc.?


Message 3 of 17
Anonymous
Not applicable

Re: Fixing this mess quickly

If we were to just pay bills every month, our income would be sufficient, however we have a lot of child-related expenses that are only going to go up as the years go on.  It's actually embarrassing because my husband has a decent salary.  We've always been really bad at managing money, unfortunately.  

 

One of the reasons why we are moving is the high cost of living, and the plan to lower bills by moving to a lower COL area.  

 

We cut cable years ago, got rid of landlines and have no car payment, thankfully.  I have gotten so used to checking email on my phone, that I use it for my part-time job, too.  It would be a hard habit to break but I'm going to look into it.

 

Message 4 of 17
tiger_uppercut
Established Contributor

Re: Fixing this mess quickly


@Anonymous wrote:

If we were to just pay bills every month, our income would be sufficient, however we have a lot of child-related expenses that are only going to go up as the years go on.  It's actually embarrassing because my husband has a decent salary.  We've always been really bad at managing money, unfortunately.  

 

One of the reasons why we are moving is the high cost of living, and the plan to lower bills by moving to a lower COL area.  

 

We cut cable years ago, got rid of landlines and have no car payment, thankfully.  I have gotten so used to checking email on my phone, that I use it for my part-time job, too.  It would be a hard habit to break but I'm going to look into it.

 


Internet is actually one of the ones you keep - you need it for job hunting, bill paying, etc.

 

I think you should do a new budget and include the child-related expenses (even if they're estimates) so you're covered. Would you still have enough to cover everything if you counted these expenses? In the short term, you need money to catch up. That means someone has to pull in more income. I got a 2nd and 3rd job when I was tackling debt. It sucks, but credit repair is slow even if you have money to throw at it. It's considerably slower if you don't. Does everyone who can work in the household have a job? Right now you have to stop the bleeding and get your bills caught up. You can do it.


Message 5 of 17
Anonymous
Not applicable

Re: Fixing this mess quickly

Thank you for the advice.  It's really appreciated.

 

I recently got a job and am working as many hours as I can.  Plans to sell off the few things we can sell are in the works.

 

We want to catch this mortgage up, but it's truly difficult to do right now.  I'm not borrowing money from family to do, that'll put us in a worse position than what we are now, which is adding to the pile of owing someone.  We started paying a few of the CAs, do we stop paying them for a month to catch up?

 

My biggest fear right now with moving is that we sell our house and get the huge stressor of being behind is alleviated, but then we can't find a new place to live because of the wrecked credit.  I haven't rented in many years and am guessing that if one place denied us, then all of them will deny us.

Message 6 of 17
Anonymous
Not applicable

Re: Fixing this mess quickly

Yes, stop paying the CAs for a month. They are already there, new lates on the mortgage keep adding fuel to the fire. At the very least get that back to even so the lates start to age. If you sell the house are you going to get any cash out? If so, dont worry about the rentals not working. If you have even a bit of cash coming out of the house when sold, most landlords will work eith you if you can offer even an extra month of security. 

Message 7 of 17
Anonymous
Not applicable

Re: Fixing this mess quickly

Screwedup, I just want to commend you for your approach. Your not blaming anybody else, your family, your job, the Govt, etc... It's so refreshing to hear someone accept responsibility, and not "lay down" or look to cast blame on others for your situation. If I was a landlord and you came to me with this approach, I'd bend over backwards to try and help you. You sound extremely sincere and honest in your attempt to get yourself out of this mess. Please continue to post here and keep us updated. I'm pulling for you and believe you can be one of the success stories. I wish you the best.
Message 8 of 17
superdad
Regular Contributor

Re: Fixing this mess quickly

Good advice from everyone, there are plenty of landlords, apartments that will take you, you'll have to search but they are out there.  Loose the cell phones and go with pay by the month, sell what ever you can live with out "will make moving easier" less stuff.  I would get enough saved up that you can pay 2-3 months of morgage. You'll still need money for security and first months rent and some places want first and last months rent.   Sounds like to me that if you have done all that and still behind you might have to walk away from the house.  If you want to give more details on your bills, list of baddies on your CR and income that might give people a better idea where to help. 

 

Where all here to help so dont be embarressed.  We have all been there and a lot of us are still there. 

 

I work 2 full time jobs to help get me out of my mess.   I work from 6:30am-2:30pm then go to my other FT job and work 3pm-11:00pm.  I get 4-5 hours of sleep, thank God for weekends "sleep"  LOL  people do what they have to do. 

Message 9 of 17
Anonymous
Not applicable

Re: Fixing this mess quickly

Thank you, drewg350. That means a lot.
Message 10 of 17
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