I was here 2 years ago for help when my DH was out of work. We refinanced our house and used some equity to pay off all the bills including a settlement with MBNA. My DH got a job that lasted only 6 months (Australian co.closed its US office) and has been unemployed for 1 year. He's doing consulting work (as am I), but we are barely managing to stay afloat (kids in college, daughter in private school, big mortgage -- you get the picture...). We've been paying all the secured debt (mortgage, car loan) plus utilities, and need to figure out how to manage the cc debt. My DH's FICO is 570 right now with all the 120-day lates reporting, and we had a two-year pre-payment penalty mortgage with an adjustable interest rate. We'll need to get out of this mortgage at some point, and don't want the FICO to tank so bad that it takes 7 years to recover. We are just trying to survive right now. Any advice on how to handle the cc debt? Do we let the charge-offs happen, or try to pay at least something now? Many thanks...
Have you considering calling a reputable company, such as Consumer Credit Counseling? They've been around for years, unlike some of the new ripoff companies that have sprung up to take your money and not pay your bills. They can provide counseling, even if you don't use their program. I did it, but I was too late and ended up filing Chapter 7. I only wish I'd asked for their help sooner. I hope this helps.
