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I need serious advise what should I do? we are drowning

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ineedhelpasap
New Visitor

I need serious advise what should I do? we are drowning

I am new to this forumn, let me try to explain our situation without getting into technical information. By the way i am a new poster here.  me and my wife are in a combined CC debt amount of aproxamately $860,000 and have 4 outstanding auto loans amounting to approxamately $300,000.  The auto loans are fine, we are able to make the payments on them, mortgage is paid outright, however at this time we were denied for a HELOC thru citizens bank due to outstanding CC debt.  We need to some how consoidate this debt, I am not sure what we should do, it is just getting out of hand, every month the payments are going up, and its going to get to the point where we cant afford the minimum payments.  should we go chapter 13? i have no clue any advice would be great 

Message 1 of 13
12 REPLIES 12
tcbofade
Super Contributor

Re: I need serious advise what should I do? we are drowning

With over one million dollars in consumer debt and a paid off home, I can only assume that you have a fairly high income.

 

Would it be possible to reduce how much you spend each month and get yourself rolling UPhill instead of DOWNhill?

02/01/24 Fico 8: EX 757, EQ 803, TU 783.
Fico 9: EX 760 12/16/23, EQ 790 02/04/24, TU No idea.

Zero percent financing is where the devil lives...
Message 2 of 13
H4LO
Established Contributor

Re: I need serious advise what should I do? we are drowning

Welcome.

 

Can you give us some insight into your financials?

Like CC Utility to Credit Limit

 

There was a really good post a few days ago that someone did. It helped to give some advice. 



Total CL - 60K // Util. ~1.6%

772 TU - 6/5 ///// 705 EX - 5/5 ///// 664 EQ - 4/29
Message 3 of 13
ineedhelpasap
New Visitor

Re: I need serious advise what should I do? we are drowning

I believe the credit limit is 2.5m, we tranfered ALL of our personal consumer debt over to our business card from Chase.  The inerest is 7.9 and has been open for over 10 years I believe, it is just out of control at this point. Every month we think we get ahead something else hits us like our kids college tuition, etc. 

Message 4 of 13
tcbofade
Super Contributor

Re: I need serious advise what should I do? we are drowning


@ineedhelpasap wrote:

I believe the credit limit is 2.5m, we tranfered ALL of our personal consumer debt over to our business card from Chase.  The inerest is 7.9 and has been open for over 10 years I believe, it is just out of control at this point. Every month we think we get ahead something else hits us like our kids college tuition, etc. 


Boy, do I understand THAT!

 

My household is currently going downhill financially as well...ours is planned tho, and we've got changes coming later this year.

 

Do you have a monthly budget?  Are you sticking to it?

02/01/24 Fico 8: EX 757, EQ 803, TU 783.
Fico 9: EX 760 12/16/23, EQ 790 02/04/24, TU No idea.

Zero percent financing is where the devil lives...
Message 5 of 13
FocusedAndDetermined
Senior Contributor

Re: I need serious advise what should I do? we are drowning

Are there any investments you can cash in/out to bring down you overall balances, thereby reducing your minimum payments?  The interest you are paying out is probably equal to or greater than what you are earning.  I'm not suggesting dumping everything, just enough to make things managable. 

Message 6 of 13
shols44
Frequent Contributor

Re: I need serious advise what should I do? we are drowning

It sounds like you have not missed any payments yet.

 

Can you give a better description of Income, current monthly financial obligations? Are the vehicles for personal use? 

 

Is the entire 860K on one card or spread out? If spread out can you break it down a bit? 

 

 


Starting Score: 501
Current Score: 754 EQ,TU 745,EX 750
Goal Score: 800

Message 7 of 13
longtimelurker
Epic Contributor

Re: I need serious advise what should I do? we are drowning


@ineedhelpasap wrote:

I am new to this forumn, let me try to explain our situation without getting into technical information. By the way i am a new poster here.  me and my wife are in a combined CC debt amount of aproxamately $860,000 and have 4 outstanding auto loans amounting to approxamately $300,000.  The auto loans are fine, we are able to make the payments on them, mortgage is paid outright, however at this time we were denied for a HELOC thru citizens bank due to outstanding CC debt.  We need to some how consoidate this debt, I am not sure what we should do, it is just getting out of hand, every month the payments are going up, and its going to get to the point where we cant afford the minimum payments.  should we go chapter 13? i have no clue any advice would be great 


With that level of debt, *I* certainly wouldn't be asking an internet forum for advice.   And if I did, not this one, where these levels are way outside most people's experience.  Go to a financial advisor or bankrupcy lawyer.

Message 8 of 13
sailor_mercury
Valued Contributor

Re: I need serious advise what should I do? we are drowning


@longtimelurker wrote:

@ineedhelpasap wrote:

I am new to this forumn, let me try to explain our situation without getting into technical information. By the way i am a new poster here.  me and my wife are in a combined CC debt amount of aproxamately $860,000 and have 4 outstanding auto loans amounting to approxamately $300,000.  The auto loans are fine, we are able to make the payments on them, mortgage is paid outright, however at this time we were denied for a HELOC thru citizens bank due to outstanding CC debt.  We need to some how consoidate this debt, I am not sure what we should do, it is just getting out of hand, every month the payments are going up, and its going to get to the point where we cant afford the minimum payments.  should we go chapter 13? i have no clue any advice would be great 


With that level of debt, *I* certainly wouldn't be asking an internet forum for advice.   And if I did, not this one, where these levels are way outside most people's experience.  Go to a financial advisor or bankrupcy lawyer.


I agree.  You need to fiind someone who can dig into the details with you and you shouldn't be doing that on a public forum.  I also agree with Focused.  You can start looking at investments (or other assets) you can liquidate to begin to pay down the debt.

NFCU nCashRewards VISA - $20,000 | NFCU nRewards $10,000
AMEX Costco TrueEarnings $5,000 | AMEX Delta Gold $1,500
Chase SWA VISA $5,000 | Chase Slate $3,500 | Chase Amazon Rewards VISA $3,000
HSN Mastecard $3,500
Message 9 of 13
myjourney
Super Contributor

Re: I need serious advise what should I do? we are drowning

+3

Longtimelurker, Focus and Sailor 

 

Welcome to the forum 

While we are glad to have you join us the scope in which you seek advice is far beyond this forum and what you need to seek is trained professional advice.

Best wishes that it all works out positive for you and your family 

 

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 10 of 13
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