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


Pages

iVillage Member
Registered: 03-27-2005
Fri, 01-16-2009 - 8:55am

(((((((((((((((((((((Norma))))))))))))))))))))


I know what you mean about there never being anything left over.

iVillage Member
Registered: 01-25-2006
Fri, 01-16-2009 - 1:53pm

Big hugs. The stress is just terrible.

Given the statement that DH's income keeps going up and up AND that there may be another job in the wings, I would consider trying to keep going the way you are going for now. I would stop paying anything beyond a minimum payment and if there is money 'left over' on some pay periods, stash that in savings for the next short week. I would discuss with DH what credit card balance you will stop at. Personally, I would consider another $5-10k in credit card debt in order to maintain your clean credit history. That may be more than you can stomach. The way I look at it is that if the bottom is going to come out, it's no more painful to BK $65k than $55k and if he gets the job and you guys get going again, it's not really that much more money in the big picture. That's my tolerance though.

Once you determine if you are willing to add more debt, if you decide that you aren't or you reach whatever threshold you decide on then I would first go to a consumer credit counseling service and see what they think. They will be honest with you and tell you if they can help you or if you should file bk. You have to have a review with them before you can file BK anyway so you might as well have them take a look.

I agree that the vehicles are killing you. You are spending 2x as much on those as on your housing. I think you could find other options. This always seems to be a hard one for people to swallow but it is often the thing that is killing the family budget. You could see if one or more of the car loans would offer you a 'skip a payment'. If so, I would consider doing that and hoping that money got you ahead enough you could stop paying gas and food on credit.

Hang in there and let's hope that new job comes through soon.

Peg

iVillage Member
Registered: 10-01-2008
Fri, 01-16-2009 - 3:06pm

Thanks Peg for the comments.

Norma


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


Pages