Please Help...debt Dilemma
Hello,
I have an urgent problem! I just found out that my husband has somehow accumulated $37,000.00 in credit card debt. I really don't want a lecture about how stupid I was to let this happen or why I didn't know about it. I just need some help fixing this, so here is my strategy. I think we should (in 3-5 years) sell the house and use the $ we make to pay off our debt. We had talked about moving to another county in Florida for our children's sake, so we would have had to sell the house anyway. We are currently refinancing and our appraisal of the house came back at $34,000 more than we paid for the house 2 years ago, so that would cover just about ALL of our debt. Plus, by then since we pay off a little each month, it should be down to hopefully about $27,000.00. As of right now the most we can pay off is approximately $400.00 a month since we have 2 small children in day care totalling $800.00 a month, plus a car payment, etc. We both work full time (my husband is a project manager and I am a teacher) and I cannot think of any possible way for us to make any extra $. I am hoping that we will have enough left over form the sale of the house for a down payment on a new house, but if not, as a last resort, I was thinking we could move in with my in-laws until we save up enough money. What do you all think. Please help, I need a solution and I have no one to talk to for help!
Thanks,
RW 
Cut up the credit cards. If you can't pay cash for it you really don't need it. I helped a friend get out of debit. We cut her cards, looked at all her bills, brought things with cash only and put her on a budget.
There is hope... I was in a very similar situation as you are in now. I recently met with an individual from Primerica Financial Services and they have put me on track to have my car, my credit cards, and my house paid off in 9 years. I cannot guarantee anything but if you have the opportunity get with a Primerica rep and ask them to put a complementary financial needs analysis together for you. YOU WILL BE AMAZED! With no cost or obligation there really is NO reason not to see what they can do to help you!
Hi,
So a similar thing happened to my mother a few years ago except her husband was out of the country and stopped putting in his half of the mortgage. She held onto her house against all odds with help fro family and in passaic county, nj the real estate appreciation is nutz, like 25% a year and she make like 100K on it (not including the taxes which are 11K a year) for four years. It sounds like you have full equity of the house. Have you ever thought about renting it out and moving in with the in-laws for a while? Also, to make extra income, I know a Canadian schoolteacher who divorced and needed extra income. She does network marketing now with a health and nutritional co. to supplement her income. It fits around her schedule and since she knows alot of people through teaching, she averages an extra $2000 a month. Another idea, my sister buys merchandise on deep discount at sales and resells it on ****Must Reach Senior Investor status before posting URL's*** for a profit. Things like high end backpacks, vaccums, designer purses and shoes, etc. She was averaging about $40-$75 profit a sale. Good luck to you!
That was reselling on ebay.
And by the way, DO NOT DO Consumer Credit Counseling with DMCC or any other organization that offers to cut your credit card interest rates and consolidate your debt. CCC is VERY different from debt consolidation. DMCC told me that it would be convenient and that I would save alot of money if I went with their program AND that my credit would be excellent when I finished, but now in actuality, my credit has a black mark on it, I have to rebuild my credit again, and I can't get another line of credit to save my life, even a car loan is difficult.
see about a home equity line to consiladate n then see where your credit rating is at 2 months later. you might raise ypur score by merging your debts into the mortgage. plus its tax deductible. i merged my debt of 20k into my mortgage n my scores went up by 67 points.
If you are refinancing - it implies you already owe a mortgage on the property - therefore the only thing to count on at this stage is the property appreciation - again, that appreciation can wipe off in no time if the housing buble crashes; here is my suggestion:
Tell your broker (refinance agent) that you want to cash out to the highest LTV possible. Take every penny of the cash that comes to hand and pay towards the $37k that your husband has built up. This will ensure that you can sleep better at night, and also that your interest payment is lower than what it is now.
** a note to this - the broker should not charge you any extra money for increasing the loan-to-value!
Tell your husband that he sux as a project manager - even if he is employed as one. I am doing my graduate studies in project management - and spending $37K extra and not informing you..not sure what to call this ..scope creep or mismanagement!
Sell the house pay off the debt and go get a lease option deal or buy subject too.
Quote:
On 2003-08-16 12:38, broker wrote:
Tell your husband that he sux as a project manager - even if he is employed as one. I am doing my graduate studies in project management - and spending $37K extra and not informing you..not sure what to call this ..scope creep or mismanagement!
I'd call it lack of marital trust.
i rolled my car and credit card payments into a new mortgage when i refinanced. the interest rates had dropped 1.5% so 20K increase made no difference in my payments and it became tax deductible!!! if you're planning on living in the house for 3-5 years, the cost of refinancing should cover the difference. apr on your mortgage will probably be a lot lower than on your credit cards too.