Credit Card Debt

[gtzdad]

What is the name of your state (only U.S. law)? TX

My wife has about 24,000 in credit card debt and were trying to figure out the best way to pay this off. Right now we pay about 900 per month in MINIMUM monthly payments on those cards and with daycare, car notes, house notes coming all into play, it's killing us.

We've looked over things before and read about credit counseling, debt settlement, and debt management. We don't want to do the settlement because although her credit score is pretty low right now, she has never been late on a payment in all these years. What advice would you give that we could get out of this hole, and what is the best solution. We've already taken steps at reducing our expenses to have extra money to throw at it, but it seems rather ineffective at the time.

 

[blove29]

Declare bankruptcy and walk away.

Banks use to make loans which made it easy for you to pay them back, now they make loans in which it is near impossible to pay them back.

 

[Antigone*]

Declare bankruptcy and walk away.

Banks use to make loans which made it easy for you to pay them back, now they make loans in which it is near impossible to pay them back.

That is dangerous and possibly foolhearty advice.

You are in a heep of trouble because of your financial decisions. You are in no position to be giving this OP adivce.

OP...blove29 is getting sued for not being fiscally responsible.

You need to look for help from a non-profit credit counselling organization. Here is one to look into.
Consumer Credit Counseling of South Texas - Quality Credit Counseling, Debt Reduction Services, Financial Education, Certified Credit Counselors, Victoria, Coastal Bend.

Whatever you do, don't pay anyone to help you get out of debt!!!

 

[Country Living]

Declare bankruptcy and walk away.

Banks use to make loans which made it easy for you to pay them back, now they make loans in which it is near impossible to pay them back.

blove, you were relying on debt to subsidize your lifestyle. Learn to be responsible and accountable for your decisions - just like gtzdad. He's not trying to wiggle out of his obligations.

Now wasn't that easy?

gtzdad - PM me.

 

[blove29]

Well her credit score is low already. And they cannot afford their financial situation, so it seems bankruptcy is a good option.

 

[cosine]

Well her credit score is low already. And they cannot afford their financial situation, so it seems bankruptcy is a good option.

Bankruptcy MAY be a good option in many cases. But the OP's case is not quite one of them. Credit counseling, aggressive negotiations with CC companies to lower interest rates, and adjustments to life style, can get the OP out of this situation. I agree with Wirelessany1 on this.

 

[TigerD]

What is the name of your state (only U.S. law)? TX

My wife has about 24,000 in credit card debt and were trying to figure out the best way to pay this off. Right now we pay about 900 per month in MINIMUM monthly payments on those cards and with daycare, car notes, house notes coming all into play, it's killing us.

We've looked over things before and read about credit counseling, debt settlement, and debt management. We don't want to do the settlement because although her credit score is pretty low right now, she has never been late on a payment in all these years. What advice would you give that we could get out of this hole, and what is the best solution. We've already taken steps at reducing our expenses to have extra money to throw at it, but it seems rather ineffective at the time.

It isn't going to be easy. It took you a long time to build up that debt level and it is going to take a long time to work it down. Pick your smallest debt item and throw everything you can at it. Once it is cleared, pick the next smallest and repeat.

Work on developing additional income sources. Take a second job - have a yard sale. Babysit for a couple of kids on weekend nights - there is always a parent looking for a night out, or daycare for a weekend night shift at work. Summer's coming - start a lawn care business on the side. If nothing else, it will allow you to use a number of deductions and might make you some money.

DC

 

[Country Living]

Additional suggestions

• Make a written budget and spend money only on basic necessities. Everything else gets cut out.
• No eating out. No food deliveries in. You go on beans and rice.
• If you don't have cash to pay for something, you don't buy it.

 

[Texas Pooh]

List all your debts by name, amount due, interest rate and minimum payments.

Pay only the minimum on every debt EXCEPT the one with the highest interest rate. On that one, pay as much as you can using the methods everyone has suggested.

When that one is paid off, applying the entire payment you were making on that card, plus the payment you were already making on the second highest interest rate card, to the next highest interest rate debt. When that one is paid off, move on down the list, always applying the full payment from the card you've just paid off, along with the minimum, to the next card on the list.

There are two basic principles: pay the highest rate card first, and don't decrease the amount you're paying each month, even after you get a card paid off. Just keep applying it to the next card in line.

Good luck.