J.K. asks from Laurel, MT on July 28, 2007
Way to Far in Debt
OK here goes my husband was laid off last Oct. and was off for 4 months needless to say in that time we got behind on some bills ok all bills and had to rely on credit cards, he did get a new job and things were starting to get better and then my work did a huge remodel and changed a bunch of things I work as a server and therefor rely on my tips as income and now with the changes I am making 1/2 or less of what I used to make. So anyways heres my question we are considering bankrupcy or credit counseling or something does anyone have experience on advice on what would be the best way to go. At this point we are not concerned about what it will do to our credit as it is already about as bad as it could get. Thanks in advance
H.H. answers from Cedar Rapids on July 29, 2007
My name is H.. I own a mortgage company and I can try to help you. You can apply on my website or call me. HallLendingGroup.com or ###-###-####
L.H. answers from Boise on July 29, 2007
So proud of you for reaching out for help! This is what I would tell a good friend or family member if they had shared with us what you have:
That would be to check out Dave Ramsey.
Here is his website: www.daveramsey.com
Then from there go to the section near the top, where it says, "Getting Started" and click there or try these links:
AND then pick up a copy of Dave Ramsey's Book: "THE COMPLETE MONEY MAKEOVER" It is a good, quick read, and will immediately give you help with your situation.
About Dave Ramsey:
"Real Debt Help - Get out of debt with Dave Ramsey's Total Money ... Real debt help is not quick or easy. Quick, pain-free fixes like debt consolidation, debt management, and bankruptcy actually cause you more harm than good"
I have personally read "Total Money Makeover" and it has been life changing. There are no gimmicks here with this one. Just real help for real people.
Feel free to private message if you have any other questions.
(Married 11 years with 2 children, 4 yrs old boy & 2 yrs old girl)
1 mom found this helpful
T.M. answers from Rapid City on July 28, 2007
I have been where you are. I have to say that it just doesn't seem that it can get any worse. Normally I wouldn't recommend bankruptcy...oh wow, not even sure the courts will allow it anymore..i forgot the laws changed a few years ago on that.
Well, I know you're already overwhelmed but this is an idea. I work from home and have for a year now. I am a part of the Stayin Home and Lovin It team. It's possible that this might be of interest to you. It has made a world of difference in my life, both physically and financially.
Many of us on this team (most of us are moms) have been where you are. We are a group of moms helping other moms get out of debt, build financial security and build a new life for yourself.
Why not email me and we can chat. I can get you more details and you can see if this is right for you.
God bless you!!!
go to "get more info"
1 mom found this helpful
S.C. answers from Sioux Falls on July 29, 2007
I am not sure if I have any real advice for you but I sure can offer sympathy and support! It really sucks to be in a bind financially and not to know where to turn to get out of it. I am sure there is credit counseling or someplace where you can go to have your debts put into one lump sum with only one payment a month but I think that depends on how much you owe. Bankruptcy is really only feasible if you owe a large amount of money and you can only do it once in so many years. I also have a 1 year old (1st B-Day today!) and I have a daughter in grade school and kids cost a lot of money! I have no idea how we would manage if my husband lost his job as mine doesn't pay very much but works well with the kids. I hope you get through this without too much hassle and best of luck to you and your family, God Bless!
S.S. answers from Omaha on July 31, 2007
My husband and I had a new home built and then 3 months after moving in found out we were expecting. After our son was born, paying for daycare really started drilling a hole in our pockets so we ended up relying on credit cards for everything. Once those were all maxed out just 6 months later we found that we just couldn't afford the mortgage payments along w/the now skyhigh credit card payments and all of the other bills anymore. We put our house on the market several months ago thinking it would sell quickly so we stopped making our payments. It still hasn't sold. We recently moved into a much more affordable rental house and had no choice but to file bankruptcy which we are working on now. It's costing $1400 for a chapter 7 but you can make payments and then once the full $1400 is paid it is filed w/the courts, and yes as previously mentioned in a prior posting you do have to take 2 credit counceling courses but both are online courses which are only about 45 minutes long. I was worried about what it would do to our credit but depending on how you file, it wipes your slate clean. It does show on your credit for several years after filing but you basically start over fresh to rebuild your credit. As far as the laws changing, that was not w/every type of bankruptcy. Someone in a prior posting said you might not even qualify. For a household of 4 as long as you and your husbands combined income was not over $64,000 the year prior to filing then you would qualify. I was devastated when we first decided to file but then I realized that sometimes you just have to do what you have to do and start over. My sister did credit counseling a couple of years ago and that also shows on your credit for the same amount of time as a bankruptcy and alot of creditors look at it the same way. You've been given alot of good advise from all of the prior postings. Either way you go your credit is going to be impacted and will take time to repair. Have a consultaion w/a bankruptcy lawyer and a credit counselor and then decide which is the best way to go. I wish you the best of luck!
T. answers from Omaha on July 29, 2007
I'm not completely sure of your situation but maybe telling you what I had to go through would help. My husband (now ex) tried to start his own landscaping business and seemed to think once the homeowner gave him money for the job done it was all profit. He didn't seem to think about paying for the material first and then the rest could be profit...with that it put him $30,000 in debt...well, I should say it put us. He was taking out loans in my name...without me knowing it....trying to hide the fact that his business wasn't doing well. He had jobs lined up...he just didn't have the discipline he needed. He started work at 9, take a break at 11, lunch at 12 then home by 4. Not the kind of hours one would put in when starting a new business. Not to mention the days he just took off because he had things to go to like the College World Series. Anyway, after it all came to a head and we had bill collecters calling us and we were living off just my income which was like $10 a hour..I worked childcare...we had to do something. We went through a credit place where they pay off all your credit cards and they work with the credit card companies so you don't have to pay the interest. We had to make a monthly payment to them and had to cut up these credit cards. If a payment was missed or the card was used they would drop you from the program. I was nice to have all the debt in one payment so we weren't paying here and paying there and to have the huge finance charges the credit card company had. I can get the name of the company if you are interested. My brother also used this same company and now has it completely paid off. I believe my ex has paid off the $30,000. Not sure if this kind of thing would be helpful in your situation or not. Let me know if you would like the company's name.
R.J. answers from Omaha on July 30, 2007
We are far in debt also, so don't feel like you're alone :o) We just recently took a financial class that really changed the way we relate to and think about money. I would REALLY REALLY reccomend it. Our church is offering it again soon. It's not a "religious" class our church just happens to be offering it. I reccomend it to all of my friends. It's called financial peace university (http://www.daveramsey.com/fpu/home)
Check it out!
A.D. answers from Great Falls on July 30, 2007
I would suggest calling your local Consumer Credit Counseling Agency. Use a local agency (not a 800) one, and make sure they are non-profit. The counselor at CCCS should be able to advise you if your situation warrants bankruptcy. Also, Bankruptcy requires you to take credit counseling classes, so by first checking in with your local CCCS you may save yourself some time. Also, have you tried calling your creditors and seeing if they can offer you a workout solution? Many times creditors have options available to help you out during times of hardship. You should also go online to us.gov and search for free credit reports. You should get a copy of your credit report and review it for youself. Things may not be as bad as them seem. The counselor at CCCS should be able to help you with this as well. good luck.
J.B. answers from Des Moines on July 29, 2007
It's hard to give advice without much information, but I just wanted to say it does get better! From what little information you have given it sounds like bankruptcy is definitely NOT the way to go. You actually probably don't even qualify to file. You should be concerned about what it will do to your credit as well, you can't fix it for at least 10 years, where you are right now it's fixable. The first thing I would suggest is call your credit companies. They will lower the interest rates if you talk to enough people (you might have to ask to supervisors, and it can be frustrating, but it's one of the best things you'll do for yourself). If your only concern is the debt, just make SURE you are making all your payments on time. If you haven't missed the minimum payments your credit probably isn't as bad as you think. Do you still get the pre-approved offers in the mail? If so look for the ones that say intro APR 0% for balance transfers. If not, talk to some of your credit companies and see what they will offer you for your business and try to get a low rate and transfer your other balances. Check your credit report if you haven't already. It might not be as bad as you think, and if it is use it as motivation to make it better. the only website to use to check your free reports each year is www.annualcreditreport.com (the freecreditreport.com signs you up for something and charges you, so don't go to that website) Also, try to find places you can cut back for awhile until you get back on your feet. Do you have cable? or eat out a lot? those are just a couple ways to save money, but everyone has something they could cut back on for a few months. Sorry this is so long, financial counseling is my life so feel free to send me a message if you have any more questions. I've been there, and it does get better!!! just hang in there!!!!