topic Re: Dooms day for me... in General Credit Topics

Dooms day for me...

Anonymous — Tue, 17 Feb 2009 02:57:20 GMT

Ok, I'm screwed. second household income is gone and, mine was reduced. I only take home enought for my mortgage, utilites and food and no room for $1200 per month of credit card bills. Yes, we owe $75k in credit cards. This balance involved medical issues, a real estate business that went belly up and living on credit cards due to second job down the tubes. We have 3 kids and the clock is running. I really don't want to file a CH-13 or 7 if Idon't have to (can't even afford a CH-13). I have a perfect credit history with no lates and a 700 FICO that's about to go down the tubes, becuase there is no way I can give a credit card a dime for now. Can't refi either, house values are down here in the Mid west. It looks like a CH7 coming up, what a shame. years of perfect credit down the tubes. Any suggestions would be extremely appreciated. Credit reduction plans or speaking with the 6 credit card companies and explaining the situation to them, will accomplish what?

Like I said, dooms day..

Re: Dooms day for me...

llecs — Tue, 17 Feb 2009 04:34:21 GMT

Lock yourself into survival mode. Focus on the house and food. But cut your expenses and increase income.

Create a written budget. Cancel cable. Eat in. Stop all hobbies. Cut any services associated with your RE biz. Stop investing. Pull any money out of investments to pay down debt. If limited to one income, sell all but one car. Consider moving. A part time job delivering pizzas in the evenings will get you the money you need. I know you can earn more.

Increase your income. You were making it before, so find something along the same lines or better to get your income back. Change jobs. Get a second job. Change your W-4 to a gazillion dependents to temporarily avoid tax withholding. Sell off stuff you don't need. Tap into savings. Use your tax refund, if applicable. If your business slumped, then use that as an advantage to cut 2008 taxes to a super-low rate.

Communicate with your creditors.

Re: Dooms day for me...

oracles — Tue, 17 Feb 2009 16:59:33 GMT

Hi Joe

Sorry for your struggles.

Read this thread

FTC webpage: Knee Deep in Debt

Hope this helps