Loan Consolidation Scams
Credit Card Debt!! Suggestions!!!!!?
We have over 50.000$ Credit Card Debt.
1. Card I owe 26 K and my Interest rate is 7.9%
2. Card I owe 19K and interest rate 11.9%
3. Card I owe 5 K and interest rate 26.4%
I also have Car payments, house payment.
I don’t want to file Bankruptcy because I have Top Secret Clearance and I am not sure about Credit solution companies. I don’t know which one is better but they all seem like pretty much scam.
I own a house I am thinking about refinancing my home and add my debt in it. I am also searching for home equity loans and consolidation…
I will really appreciate any suggestions.
TIA
* 17 hours ago
* – 3 days left to answer.
Additional Details
17 hours ago
I really appreciate all the answers coming!
I quit using credit cards last year, and I possibly cut everything I can.. But my my debt to income ratio is so high!!
The Credit Repair companies won’t do anything for you that you can’t do yourself, and they charge you for the privilege.
First, no lender wants to write off any amount or send anybody to collections because they will be out the money. So, if you call them and be honest, many will work with you if you show a good faith effort. Start by contacting everyone and try to work out a repayment plan.
Refinancing is going to be difficult under the current tight credit conditions. I’m not saying don’t try, but it’s not going to be easy.
I would attack the 5K @ 26.4% first. Try and negotiate a lower rate and a payment plan. This is very high interest and is also the smallest amount so you have a better chance of paying it off first. This should be your first goal. Then take the money from that debt and start working on the next thing in the same manner. Use it to pay extra.
You may also want to consider selling off a car and getting out from under that debt quickly.
The root cause here is spending more than you make. You need to develop a budget and stick to it. Quicken is the tool I use.