How should I pay off my debt

Submitted by Anonymous (not verified) on Thu, 05/27/2010 - 05:20
Forums

I am about $70K in credit card debt. I also have a rental property that has been an absolute headache. I cleaned out my 200K to buy my house. Now I can't seem to keep up on my payments.

I had a 700+ score before, and had never missed a payment. Including my leased vehicle. I have no savings. I am thinking of doing a ch13 BK and giving up the house.

Should I go to a credit counseling company? hire a lawyer? Call the creditors one by one? write only? what's the best advice out there?

Hi Chloe,

Can you tell whether you have already failed to make any payment? However, you can try to consolidate your debt. Debt consolidation lowers the interest rate, and reduces the monthly payment. Under consolidation, you consolidate all your debts into one, and make a single payment each month.

However, you can first make a copy of your monthly income and expenditure. You can try to fix your expenses. In this way you will be able to save more money, and pay off your debt.

If you want, you can also join a credit counseling agency, who will help you in budgeting. If budgeting doesn't work out for you, they will enroll you into a debt consolidation program. The agency will then do all the negotiations with your creditors on your behalf.

Thanks,

Aaron

Thu, 05/27/2010 - 09:33 Permalink

you can sit down with a non profit credit counseling agency. NOT one of those scams where they promise to cut your debt in half.

http://www.nfcc.org/

this is required by the bankruptcy court and it will help you decide what to do.

Thu, 05/27/2010 - 10:16 Permalink