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Forum -> Household Management -> Finances
50,000 in debt, 37,000 to credit cards, HELP!
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MaBelleVie




 
 
    
 

Post Sun, Jun 02 2013, 10:04 am
Op- congratulations on taking the difficult first step of tackling your debt.

Just a word of warning- a few posters offered for you to pm them because their husband can help. I have no idea who these people are, and they may be wonderful- but they may also be a huge mistake. I once hired the husband of an imamother (someone established on the site) for a certain important job. He was terrible and caused us loss of time and money as well as tremendous agmas nefesh. Beware.
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amother


 

Post Sun, Jun 02 2013, 10:42 am
My MIL negotiated her credit card debt down but it ruined her credit score to the point where she can't lease a car and can't buy a condo. I don't know specific numbers but it's not a good situation.

Ur dh needs to give up his dream of chinuch, nobody's getting jobs nowadays unless they have pull!
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amother


 

Post Sun, Jun 02 2013, 12:27 pm
OP here, thanks for all the advice and chizzuk, I knew you ladies would be proud and supportive.

Quote:
My MIL negotiated her credit card debt down but it ruined her credit score to the point where she can't lease a car and can't buy a condo. I don't know specific numbers but it's not a good situation.

Ur dh needs to give up his dream of chinuch, nobody's getting jobs nowadays unless they have pull!


its my understanding that it messes up your credit for a while, longer if your on a fixed income like social security... if your income increases you can repair your credit much faster. we are young and the biggest problem we forsee is the inability to get a mortgage in the next 5 years or so, since we cant afford to buy this may not be much of an issue...
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amother


 

Post Sun, Jun 02 2013, 1:15 pm
Been there, DOne that....

I owed almost $40,000 to CC and at least another $10,000 elsewhere.

I used a company called Greenpath, a national non jewish debt consolidation company.
They charged me $50 a month for the consolidation.

They negotiated with cc companies for lower rates and they took money out of my account monthly and they paid the bills. They put me on a 5 year plan, but actually everything was paid off in under 4

The thing I did not like is that it closed all my accounts that they worked with, I only care as credit rating is partially determined by amount of credit line, which is now significantly reduced as a result.

I did keep one credit card off the consolidation as I wanted a cc available for when I need one eg car rental and other such things.

We felt so good and in control once we started doing this .

I am wary of any person or company that says they can get rid of the debt,, they may be putting you in bankruptcy without your knowledge.

When I used Greenpath, I spent a lot of time researching companies and how they work, it worked for me.

Hatzlacha, my best advice is to keep your eyes open...

You can technically call all companies and negotiate yourself.
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amother


 

Post Sun, Jun 02 2013, 1:15 pm
Been there, DOne that....

I owed almost $40,000 to CC and at least another $10,000 elsewhere.

I used a company called Greenpath, a national non jewish debt consolidation company.
They charged me $50 a month for the consolidation.

They negotiated with cc companies for lower rates and they took money out of my account monthly and they paid the bills. They put me on a 5 year plan, but actually everything was paid off in under 4

The thing I did not like is that it closed all my accounts that they worked with, I only care as credit rating is partially determined by amount of credit line, which is now significantly reduced as a result.

I did keep one credit card off the consolidation as I wanted a cc available for when I need one eg car rental and other such things.

We felt so good and in control once we started doing this .

I am wary of any person or company that says they can get rid of the debt,, they may be putting you in bankruptcy without your knowledge.

When I used Greenpath, I spent a lot of time researching companies and how they work, it worked for me.

Hatzlacha, my best advice is to keep your eyes open...

You can technically call all companies and negotiate yourself.
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amother


 

Post Sun, Jun 02 2013, 6:57 pm
I just wanted to mention in case it's applicable. We owed a large amount on our chase credit card. Having read about it before on this forum, I called them up and worked out a balance liquidation program. Basically they made my card inactive and I paid a low monthly fee each month for five years. It didn't affect my credit at all since the account remained open, just the card was inactive.
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mommyhood




 
 
    
 

Post Sun, Jun 02 2013, 7:52 pm
Can your husband leave kollel and watch your kids in the meantime. Husband's generally don't like being a stay at home dad but maybe it can reduce one of your fixed expenses until your husband can get a job.
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Mama Bear




 
 
    
 

Post Sun, Jun 02 2013, 8:04 pm
I worked with Debt Crushers to slash my credit cards to half or less. yes it ruined my credit but I'm not buying a hour or car anytime soon. I am now credit card free basically, I use only a debit card. It feels so good not to be in debt; we had $25,000 in cc debt!
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amother


 

Post Sun, Jun 02 2013, 8:16 pm
op here
Quote:
Can your husband leave kollel and watch your kids in the meantime. Husband's generally don't like being a stay at home dad but maybe it can reduce one of your fixed expenses until your husband can get a job.


I have thought of it but it doesn't really solve any problems- and will create a host of new ones. It will kill my marriage and I will lose my babysitter who happens to be great- I'm sharing with someone and committed for at least through the summer, also I would like him to finish out the year as planned... the extra few weeks until the zman is over ain't gonna change anything and he feels like a failure because we are so in debt, ( even though the fault is both of ours), leaving kollel early will just make him feel worse. He has had side jobs throughout the years, lost a lucrative one in the beginning of this year through no fault of his own and that's a big reason why the problem snowballed. I'm gonna try and get some overtime for the near future to close the hole in the day to day budget but that doesn't solve the debt problem, which is why I am seeking solutions that might work for the debt.. like I said in my OP- I know now how to prevent this from happening again but I need to get rid of this stone in the most expedient way with the least fallout.
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amother


 

Post Sun, Jun 02 2013, 8:24 pm
Consider bankruptcy. Your credit is repaired very quickly. You can get credit cards right away. Companies constantly solicit for cart loans. You can get a mortgage after one year. Check with an attorney.

You also can negotiate these credit cards on your own and repair your own scores with credit agencies.
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