I think I'm heading for the underground.

[Anonymous]

Been working on Ficos for exactly 1 year. Some good, some not so good. My FICO will improve as I pay down balances, and a couple o' ancient baddies fall off early next year. But I digress!

It's my DH.

He's with CCCS, payments are over $1k a month, and looking at the statements, yeah. Balances are going down, but so little that I seriously wonder if working two jobs and scraping by on nothing is really worth it. We've paid in over $6k, and the balances are down only about $2.5k. Not that CCCS is doing anything wonky, it's just really large balances that are accruing interest, albeit less interest, that are keeping the balances so high. And he has 3 1/2 years to go. Additionally, we have a 4 year old Ford Focus that I'm having towed home today that needs $1400 of work just to make it driveable, and he is upside down on the loan. So, can't sell it, can't trade it, can't drive it. And it's a Focus, so doubtful anyone would steal it. Just kidding. Sort of.

On top of all this, we talked with a bankruptcy attorney, and if we filed CH7, we would lose the house that we currently have people buying from us with a contract for deed. So they would lose their house, and that is not acceptable to us. If we file CH13, our state requires that all payments are made by wage assignment, and DH works for his parents, and believe me, having his wages garnished would cause an irreconcilable split with them. And he's an only child.

I don't feel sorry for myself, or my DH. Two extremely tough and expensive divorces between us, buying a house that was just a little over our means, and just life in general. I don't slough off my responsibilites, but man it's just so overwhelming and every day it seems like car trouble, medical issues, or some random expense that keeps us treading water. For example, I got a certified letter from the IRS today, and it wasn't a "Thinking of You!" card. Sigh.

I understand why people just say "The heck with this noise" and just let everything go. I'm totally there.

Please know, my fellow FICOnians - not looking for sympathy. Just wanted to get a little off my shoulders.

Thank you.

[smallfry]

What is you total debt? Outside of the mortgage? What interest rate are you paying on your late credit cards? You are paying 6K and only getting the principal reduced by 2.5K a month? Something doesn't sound right. Did your try the hardship programs with the card companies themselves? You can do better than your current plan and I would consider doing that.

[granny031350]

you should talk to a bk attorney or 2 or 3 also just so you know where you would stand and what you could and couldn't do.  I believe that one of your questions would be if you can make the trustee payments directly.  I know I can.  (Michigan) but beside the point,  I would explore all options and then plan out a course of action.

[Anonymous]

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smallfry wrote:
What is you total debt? $44,251 unsecured, owe about $8700 on car.Outside of the mortgage? What interest rate are you paying on your late credit cards? Different cards gave us differing rates. For example: BofA ~ one card was at 32%, reduced to 16%The other was at 28%, reduced to 14%. So they cut the interest in half. Some others are at 9 - 10%You are paying 6K and only getting the principal reduced by 2.5K a month? No- payments are $1062 per month. The original balances in October 07 came to $50,155. Paid in $9,502 from October thru June 30th. So of $9502, $5904 went to principal, $3600 to interest.Something doesn't sound right. Did your try the hardship programs with the card companies themselves?Yeah - BofA suggested CCCS... You can do better than your current plan and I would consider doing that.

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[smallfry]

At this rate it looks like it will take 7 years to get clean. I would see about a couple of free consultations with a BK lawyer or 2. Good luck.

[Anonymous]

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smallfry wrote:
At this rate it looks like it will take 7 years to get clean. I would see about a couple of free consultations with a BK lawyer or 2. Good luck.

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No can do on a BK for the reasons in the original post.

[Anonymous]

Can you pay extra a month directly to the CC? You may want to try paying like that if possible. What is CCCS charging you to do this? You may be able to do it on your own without paying a fee. (Not sure if you can reverse it though, I don't know anything abou CCCS) Have you tried calling the backdoor numbers or calling CCCS about getting those interest rates even lower now that you are paying on time and paying down your balances?

[marty56]

Just a heads up but  if you have BofA products in a CCCS program, BofA will drop you out of the program if you obtain more credit while you are in the program.  That happend to me and I have a 120 day late as a result on my CR.

The BofA intrest rates sound high.  The were 10% for me whenI was in the program so I would call the CCCS first and if they cant get BofA to lower them, I would call directly.

[smallfry]

OP I would get back in touch with the IRS immediately.

[MattH]

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@Anonymous wrote:

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@smallfry wrote:
At this rate it looks like it will take 7 years to get clean. I would see about a couple of free consultations with a BK lawyer or 2. Good luck.

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No can do on a BK for the reasons in the original post.

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I would still talk to a good lawyer, there might be options you have not considered.

ALSO, are you active members of any faith community or religious organization? If so, then you should talk with your priest/minister/rabbi/guru/shaman/whatever as well. He or she may not be able to offer much practical advice, but in the current economy has very likely spent a lot of time counseling others in situations like yours so may be able to offer spiritual and moral support that could be enormously helpful (the best of them will also have genuine wisdom to impart). I've known many outstanding folks in my own and other traditions, and some of them have been truly a blessing to my wife and myself at difficult times -- several ministers were a huge source of support after my sister died in a 2007 auto accident.