Need a little advice

[DakotaJosh]

What is the name of your state (only U.S. law)? VA I am trying to figure out which way to go on paying off my credit cards. Are the companies like Credit solutions, or the one called Fast Track Debt Relief a good way to go.

I am struggling to make the payments and need help getting out, the rate I am going it will be twenty five years paying the min payment to get out. I need money to live on so I need to find a way to get these lower. I am seeing about the home equity loan, I owe 54,000 on my house tax ticket is worth about 150,000 so I do have equity in it, my credit score is 682 so I don't know if I will get one or not. Please tell me some options I can't afford to see a lawyer to ask.

Thank you in advance.What is the name of your state (only U.S. law)?

 

[bigun]

First of all, the assesed value for property tax purposes is not how equity is determined.
How much are similar houses in your neighborhood selling for minus, the amount of the mortgage balance determines equity.
I'm no real fan of home equity loans to payoff credit card debr. You're taking unsecured debt and making it secured. Plus, if you struggle to pay credit cards, how will make the payments on the heloc. And then, what happens if you get a heloc and then, run those cards up again? We see that a lot on these sites.
In general, I'd sugest stop using the cards and then pick up a pt/weekend job and the income from that dedicated to cc repayment. ALso, many cc companies have hardship programs and a toll free contact number on your statement.
You might also try credit counseling from National Foundation for Credit Counseling

 

[Wyldrush]

Best thing to do is contact each company and clearly state your problems. Depending on your finances many will offer you a reduced payoff if done in 1-3 payments but large payments.

I say 90% of the companies are willing to stop interest, cancel cards and let you pay off the debt. Many will reduce interest as well. Work to get interest stopped and a reasonable payment plan.

DO not use your equity. Why risk losing your house over a credit card. Right now you have roof and as long as mortgage paid you will have one

 

[DakotaJosh]

Thank you.

Thank you both for telling me your advice. I was worried about doing it with a loan and my house. I will contact each one and see what I can do that way first. I had a company call me they were called fast track said they could get me out in 30 months at $285 a month , I was afraid after reading that some don't make any payments and you end up worse off.

If the cards work with me will that keep my credit ok or does that hurt you as well as doing the debt thing. If by chance I can't get it worked out with the cards and need to go with a company to do a debt relief do you have any ideals of ones that do what they say they will do.

Thanks so much for all your help.

 

[cyjeff]

almost all of those debt companies are rip offs.

Be very careful.

 

[Wyldrush]

If the cards work with me will that keep my credit ok or does that hurt you as well as doing the debt thing. If by chance I can't get it worked out with the cards and need to go with a company to do a debt relief do you have any ideals of ones that do what they say they will do.

Thanks so much for all your help.

stay away from them all. They do nothing you can not do on your own. They can make promises but not all companies will even deal with them. Banks pretty much have a basic percentage they will knock off your bill and stop interest is no problem these days since you can not use the card once you enter into a relief program.