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| Thu, 05-26-2005 - 11:55am |
This is my first time to write although I have been reading the board for a couple of months. I have read many good ideas for reducing debt. I just wish I had discovered this board a couple of years ago. I think if I had, I would not be where I am today.
This is my situation. I owe $46,500 in credit card debt and personal loans. At this particular time, my payments exceed my income by about $300 per month. Until now, I have made the difference up with credit cards as you can see by my LARGE debt. I handle all the finances for my family and basically dh does now know about the debt. He knows I owe credit cards, but not that I owe this much. He gives me his entire paycheck except for the amount he keeps out for gas, etc. and this amount is reasonable. We both have good incomes. I really can't say exactly what got me to this point. I am not a shop-a-holic and we don't take expensive vacations, or do any one particular thing that I can see that would have gotten me here. I think maybe more than anything, I just didn't manage money well. I am organized. I keep a ledger and write down all my charges, finances charges, and payments. I knew I was headed for trouble but I kept thinking something was change to make things better. One mistake I made, actually more than once, was to do debt consolidation loans. The problem was that the monthly payment was the same as what I was already paying out so therefore, no additional living funds, and using my cards again to make up the shortfall each month. Well, that is my debt nightmare and I really need advise and HELP. I contacted two different DMP, but to pay my debt within their allotted time period, all they could do was increase my payments by an additional $120 per month and then charge me a "voluntary contribution" of $49 per month to enroll in the program. One offered no other solution. The other, which is why I need advise, offered a debt settlement program. The payments under this program would get me back where I need to be. I just hate the idea though of not paying what I owe. But I have to do something. With the minimums increasing on the cc, I cannot do more than I am doing now. Also Chase increased my rate to 29+%, not because I was late, in fact I have made all my payments on time, but because of the amount of my revolving debt. They say they sent me notice with the chance to opt out of the new terms, but I did not receive it. I have contacted them several times but they will not reduce the rate. I think this is unfair and criminal. But that's another story. Any advice on the debt settlement would be appreciated. Sorry for the book. I hope that each of you will pray for me. I have never been so ashamed, scared, and hopeless in all my life. Thank you for being here.

Hello lance2005 and welcome to the board.
All my best,
Danni