New to group, need help and advice

iVillage Member
Registered: 07-27-2003
New to group, need help and advice
4
Sat, 02-14-2009 - 2:56pm

I have gotten myself into a real mess trying to help my son with a drug addiction and accompanying legal fees.

I have over 75K unsecured debt, have refinanced my home once already and have little equity left. I make $79K per year. My house payment is $1300 per month, but my credit cards and other unsecured debt is almost $2000 per month. I need to find a way out. I have been late on a couple of cards and now all of them have raised my interest rates to almost 30%, and they have raised the minimum payments too.

I am struggling to get everyone paid to keep my credit rating from taking a nosedive. I know it is already affected due to the late pays, but my FICO score is still in the upper 600's or lower 700s.

I am almost 60 and want to retire in 3 years, but at this rate I can't see how I can get all this debt paid off by then. I am thinking of debt settlement. I am considering buying a new car diear since I know my credit will be ruined with debt settlement. At my age, does it really matter what my credit score is? I can't see myself buying another home.

The only way out I can see now is debt settlement or winning the lottery (HA).

What should I do?

iVillage Member
Registered: 03-17-2003
Sat, 02-14-2009 - 4:25pm

At age 60 you are right: you don't have time to pay off the debt.

iVillage Member
Registered: 07-27-2003
Sun, 02-15-2009 - 12:34am
With bankruptcy would I lose my house too?
Avatar for earnhardt_jr_fan
iVillage Member
Registered: 03-25-2003
Sun, 02-15-2009 - 12:40am
Not necessarily. Bankruptcy is not about taking away your personal items -- only about eliminating your debt. If you are able to continue paying on your home, you will be able to keep it. You can also keep your vehicle as long as you can continue to pay on it according to the original terms of your contract with the finance company.
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iVillage Member
Registered: 03-17-2003
Sun, 02-15-2009 - 1:03am

As Brandee wrote, you won't necessarily lose your house.