Debt Consolidation- Please Help!!

[Debtdebt]

Yes there's about 100k equity in my home. My mortgage is through Chase and I thought most banks stopped HELOCs due to the current market. I want to be debt free in 3-5 years and not worrying about the credit card debt I'm currently stressing about. I'm just worried how a BK would affect my current home. Currently paying $1830 at 3.5% for my mortgage. I was planning on upsizing in 3-5 years because my family is outgrowing our current home. 

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@FireMedic1 wrote:

Any equity in the home? HELOC possibly. I've never said yes file BK. The biggest investment is a home. Credit cards are not. Were do you see yourself in say 3-5yrs after filing for BK. Fresh start and rebuilding. Or. Still paying on these debts and interest is flying out the window. Money lost. Never recovered. Choice is yours. Best of luck.

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[SouthJamaica]

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@Debtdebt wrote:

Yes there's about 100k equity in my home. My mortgage is through Chase and I thought most banks stopped HELOCs due to the current market. I want to be debt free in 3-5 years and not worrying about the credit card debt I'm currently stressing about. I'm just worried how a BK would affect my current home. Currently paying $1830 at 3.5% for my mortgage. I was planning on upsizing in 3-5 years because my family is outgrowing our current home. 

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@FireMedic1 wrote:

Any equity in the home? HELOC possibly. I've never said yes file BK. The biggest investment is a home. Credit cards are not. Were do you see yourself in say 3-5yrs after filing for BK. Fresh start and rebuilding. Or. Still paying on these debts and interest is flying out the window. Money lost. Never recovered. Choice is yours. Best of luck.

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I think you should definitely stay away from borrowing against your home. It's great that your mortgage is 3.5%.

[NoMoreE46]

Typically, you can reaffirm debt like your mortgage and car during a BK.   This means the Ttee will let you keep the house etc.   If you're planning on buying a bigger (hint: more expensive)  home in 5 years, you should consult an attorney who can advise on your specific situation.

Shuffling your cc debt is not going to work.  You will need significantly more income and to stop spending.

PS it looks like your utility is 85% and not 57%. 

[Porsche_Enthusiast_911]

I'm not an expert but with your current debt load I believe as you already have experienced with that one lender is that they wont work with you due to your debt to income. 

I say this as advice as i was in a similar situation and have been through a chapter 7 which wasn't a pleasant experience in itself for me. Debt consolidation and the such will not fix your problem. You have a problem of spending beyond your means that has began to spiral out of control and are now 1 mishap or "emergency" from everything tumbling down.

I wish you the best of luck at any rate