I have $70K in credit card debt on two cards and I lost my job a month ago. Before I got laid off my household income was over $175k a year. We used to have $60K in the bank (after the recent market crash it is valued at $30K). My wife makes $50K a year but our mortgage with taxes and insurance is $5K a month and we have $1000 a month in medical expenses, $365 car payment as well as normal living expenses. I am not late on any payments yet but will be very soon. BTW all debt is in my name not my wifes. I have thought of CCCS, debt renogtiating with a payment plan, and trying to contact the credit card companies myself. I would like to shut the accounts down and have the cc companies stop charging me interest so I can pay it off. I think I can handle $1000 a month and would be paid off in 70 months. My wife and I both have credit scores over 760. What is the best way to do this? Should I try to negotiate myself? My bro-in-law is an attorney but I am really embarrased to ask for his help. Is there another way I can do this? Are there any credit couseling companies that are honest and will work for me?
When it comes to your future you need to lose the embarrasement.I would contact the cc and see if there's any hardship programs that they can help you with.You can also go through your budget and see if there's any area's you can cutback.You need to attack the problem.if your not working now,maybe a parttime temp job until you can get back in your field.
Oh guy, I truly wish you the best in getting a handle on this. I'm certain if you keep a positive outlook and forge ahead, you will prevail. I do agree with jjgross - lose the embarassment. Often times it's our pride that causes more damage than the situation. Ask for help; your brother in law would rather help you, than to see you loose everything, and know he could have helped in some way, but wasn't given the chance. Best wishes to you!
I would not get involved with any credit counseling. You could call the OC's and ask them for either 0 interest for one year, or a hardship reduction in amount. What are the cards? Unfortunately in my experience they never want to do this unless you are at least several months late,so this may be an option in a few months. I wouldn't worry about credit ratings as serious I do think you are going to not be able to keep paying your debts,and I also think the banks are going to cut the credit lines you have as they have done to many of us for no reason. I do not see that you are going to be able to pay these credit cards off, so you may want to decide to cut your losses, decide to not pay, and basically do self bankruptcy. You said all the cards are in your name, and your wife is not an AU is she?? What state are you in? Again you have to think this long and hard, as it is not a wise thing to spend your last dollar on credit card payments when you do not have a job,and in this economy. I once had more than 300K in CC debt and Lines of Credit, and the ones that wanted to work with me got paid, the others didn't... Yes I was brought to court, after several years and more,but the junk debt buyers never got any money from me, but I got money from them several times. Now I am debt free and I never had to file bankruptcy. Sometimes you really have to figure out what the wisest thing to do is. Giving them all your savings with no job security right now is not the best move in my opinion. Good luck! Woofer
