What would you recommend?

iVillage Member
Registered: 10-01-2008
What would you recommend?
13
Thu, 01-15-2009 - 1:56pm

I have five credit cards, totaling around $55,000.

Norma


"Patience is the best remedy for every trouble"- Plautus


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iVillage Member
Registered: 11-14-2008
Thu, 01-15-2009 - 2:34pm

Norma,

I could tell this has been on your mind lately. I am not surprised you posted your numbers. PLEASE, do not feel bad.

I am not as good with the numbers as some of the other posters. What I do see is that you need some breathing room for groceries & gas. It must be incredibly stressful. I realize you have pinched every possible penny. It might be time to consider other big options. It depends on how long you want to wait on hearing about your husband's job opportunity(I am thinking about you guys!)

Some things to consider?:

1. I am not sure I understand the truck situation? Is selling it not an option even at a loss? Or if your son is still using it, could he not help with the payments even just for now? Does he know you charge gas and food? What about your other vehicles, do you own or lease? Could you sell and downsize for a smaller payment or something better on gas or both?

2. I know this is hard.......(have you considered moving?)I know you love your yard and animals, I hate to even mention it. What about a small house that still has a garden? The expenses would not be so high for feed and you could sell your tractor to help out. Or could you tap some home equity to pay off a debt to give you enough money left over for necessities.

3. Or could you tap some home equity to pay off a debt to give you enough money left over for the things you need every week?

All hard things for me to say. I wish you luck and patience.

K



iVillage Member
Registered: 07-02-2008
Thu, 01-15-2009 - 2:42pm

Norma,


My heart goes out to you. Although it might not seem like it you are able to pay your bills and able to get by. That is an accomplishment all in itself.


Any way you would consider asking your son if he can pay half the auto loan right now? I KNOW you feel that parental obligation to take on the car because of the loss he incurred in the failed business but right now you need to move past that guilt and explain things to him. If you want, tell him when things change and you can help again with the car you will. For now, that must be a few hundred dollars you can use for debt and/or tractor payment doubling to get out of that payment by the end of 2009.


IMO - if you call the c/c companies and ask them to lower your payments b/c times are tough the WORST that can happen is they say no. It's worth a try. It's not going to hit your credit report to simply call and ask. If you do and they won't work with you - then you at least tried. If you call you might be surprised. Times are tough out there - this is NOT news to the c/c industry. I'm sure they'd rather receive some payment from you out of good faith then have your account in default.


Hugs to you!

iVillage Member
Registered: 10-01-2008
Thu, 01-15-2009 - 2:56pm

Thanks for your suggestions.

Norma


"Patience is the best remedy for every trouble"- Plautus


Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Thu, 01-15-2009 - 3:23pm

Actually, if you call the cc companies, the worst they can do is decide you're a bigger credit risk than they thought and they may then decide to raise your interest to the tune of 30% or they may decide to shut down your credit lines all together.

All my best,
Danni

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Thu, 01-15-2009 - 3:39pm

Question:

All my best,
Danni

iVillage Member
Registered: 10-01-2008
Thu, 01-15-2009 - 4:05pm

Hey Danni,


Thanks for responding.

Norma


"Patience is the best remedy for every trouble"- Plautus


Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Thu, 01-15-2009 - 5:56pm

Norma - you didn't default on our credit card, you opted out.

All my best,
Danni

iVillage Member
Registered: 10-16-2007
Thu, 01-15-2009 - 7:53pm
Credit cards are unsecured debt whereas a house and car are secured debts. I don't think that if you have the same company for your house and cc, or auto and cc that they can touch your secured accounts. I hope that helps. I wish you luck. What about bankruptcy? You can do that without including your house.
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iVillage Member
Registered: 07-10-2003
Thu, 01-15-2009 - 8:13pm
Is one of the insurances on the house mortgage insurance?
iVillage Member
Registered: 11-29-2007
Thu, 01-15-2009 - 10:54pm
The cars are killing you. You are spending so much on them you have no money for food or gas. I understand that you have reasons that you think they are practical and want to keep them, but what are your priorities? Sounds like your house comes first. Then should come food, and only after that transportation. Since you are using the car for all 4 families, can they chip in for the expense? Can you get extra jobs using the truck to haul stuff that would make that payment? Can you get rid of one of the other cars? If you have a good credit rating, your credit union should be willling to give you a loan for the 5000 you need to sell the truck. It would be a lot better to be paying off 5000 then the 30000 you owe now. Do NOT trade the truck in - sell it privately you will get far more money

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