Posted on: 27th Jun, 2008 09:13 am
we have 40,000 equity in our home but 172,000.00 of unsecured credit card debt Do we have any option. We have a good credit rating and make monthly payments on time we currently not behind on any payments but we have several cards maxed out and one with a 23% interest rate do we have any options
mary,
Its a tough sitaution. Do you want to keep the home? do you have kids that you want to keep in the school district? Is there a chance if you use some equity to pay down your cards you can not use them again? Just so you know that consumer credit counseling acts like a bk in most lenders eyes. I would seek a financial advisor on this.
Its a tough sitaution. Do you want to keep the home? do you have kids that you want to keep in the school district? Is there a chance if you use some equity to pay down your cards you can not use them again? Just so you know that consumer credit counseling acts like a bk in most lenders eyes. I would seek a financial advisor on this.
Welcome Mary,
Really this is tough situation. Why have you taken out so much of debt when you cannot control that? You should try to pay the high interest rated debts first. Filing BK is an option but it should be your last option to choose.
Check whether you qualify for Bankruptcy Chapter 7 or 13 at http://www.mortgagefit.com/bankruptcy/chapter7-chapter13.html
Let me know if you have any more queries.
Really this is tough situation. Why have you taken out so much of debt when you cannot control that? You should try to pay the high interest rated debts first. Filing BK is an option but it should be your last option to choose.
Check whether you qualify for Bankruptcy Chapter 7 or 13 at http://www.mortgagefit.com/bankruptcy/chapter7-chapter13.html
Let me know if you have any more queries.
Hi Maryrayrn,
Welcome to our community forums.
I can understand your situation very well. It's good that you are not behind on your mortgage. But you've maxed out a lot of credit cards! I suggest that you undergo a credit counseling session which will help you to repay debts in an organized manner. Alternatively, you can also go for debt management plans.
Regards,
Jessica.
Welcome to our community forums.
I can understand your situation very well. It's good that you are not behind on your mortgage. But you've maxed out a lot of credit cards! I suggest that you undergo a credit counseling session which will help you to repay debts in an organized manner. Alternatively, you can also go for debt management plans.
Regards,
Jessica.
23% rate is extremely high for a credit card. You should seriously consider closing the account if you don't need to use it and payoff the card locked in at a much lower rate. This way you can free up some money every month that you would have been sending in for payments. Talk to a credit counselor, they can help you work out a deal with your credit lenders on paying it off quickly and at a much lower rate.