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Subject: Drowning in credit card debt.
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Sat Jun 13, 2009 12:07 am
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| I am married with $50,000.00 in credit card debt trying to keep paying bills while my husband took a 30% pay decrease. The cards are in my name and have recently gone up from 5% to 15.50%. I called the credit company and they said that there is nothing they can do. If I stop paying my cards in my name - will it affect my husbands credit. I cannot keep up the juggling and feel he will soon be loosing his job and want to be able to make house and car payments |
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rachael
Joined: 11 May 2009
rachael's page
Posts: 234
6581 Magic Points
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Mon Jun 15, 2009 6:09 am
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Hi Guest,
It is indeed a difficult situation. I think the only way to get out of debt, in your case is to save as much cash as you can. You should try to budget your expenses. Try to cut down your phone expenses or anything you spend on entertainment. You can also shop for anything you need from discount stores. Use the bucks you save to pay off the card debts. You must try to pay more than the minimum payment.
You can also consider taking a second mortgage to pay off the card debts. A second mortgage is a secured loan, you can take against your home. It has a fixed rate of interest, so you can budget accordingly when you are paying down the loan. You can also take money whenever you need it, instead of taking one lump sum.
If it is possible to open a low interest credit card account, you can consider transferring the balance of all the high interest rate cards to it. This can reduce the amount of money you pay towards the debt accounts every month.
_________________
Looking forward to a debt-free life. |
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moemi
Joined: 15 Jun 2009
moemi's page
Posts: 3
149 Magic Points
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Mon Jun 15, 2009 7:25 am
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Sorry to hear about that. I had that dilemma before...
In the end, what is more important, your credit or cash ?
Problem is, when your cash gets low, you end up borrowing more money to pay for your credit card and your bills...
Before you do anything, list down all the things that can be affected if you mess up your credit... i.e. refinance to get a lower fixed rate, need to move to lower rent, need to trade in to a cheaper hybrid car, etc etc...
in the end, cash is still king !! |
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