Posted: 10/29/2006 3:35:46 PM EDT
| My wife is so far gone in credit card debt, that she can hardly make the monthly payments. Does anyone know where she can can get some help. |
| Look into the Consumer Credit Counseling service. There is a link on Clark Howard's Page. |
Not always (always) a good idea. Most credit card debt is unsecured debt unless the card was issued on an equity account like a second mortgage. Unsecured debt is MUCH more flexible to negotiation. Loan officers are always looking for a way to improve their secured position. If they have any collateral, they have you by the balls. If they have no security, they will often be much more open to polite discussions. |
nice Eddie avatar. sorry for being off topic |
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Ummmmmmmmmmm.........she's your wife. Doesn't that mean that that you kind of have a debt problem too? What's the rules? Can the CC company come after your joint assets? Or will her credit just go down in flames and not touch yours? Can she declare bankruptcy and not affect your joint assets? |
Total Money Makeover Getting into debt is a problem, it's an attitude. That attitude needs to change. I had/have a similar problem, but I am making headway. My attitude about my finances and credit cards have changed. Your wife needs to have that change, too. |
| The Credit cards are gone and has been gone for awhile. She has used credit cards to pay off other card. Citi Financial is the only problem right now. Her interest rate is $175.00 a month b/c she has let the card go to hell without paying it. If they would stop the interest rate then she could catch help on the payments. They have even charged off the account but, they are still making her pay. |
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Step one - stop charging stuff Step two - put as much money toward the bills every month as you can. If you have multiple cards, start with the one that has the highest balance...put the bulk of your available funds toward that one and chip away at the others. When that one is paid off, go for the next highest balance card. This way you are aiming straight for the cards causing you the most interest cost. Also, if the credit rating isnt already too screwed up....apply for a card with a very high limit and try to transfer the debt from multiple cards to one....so that you are dealing with one bill and one balance. Sometimes ths can help a lot. Also, take a look at what she bought....sell off whatever is laying around that is worth money. Just keep going after the highest balances and in time you will make a dent. It may take time....but eventually she will be clear. Good luck. |
So, you recommend taking out a loan to get out of debt? 
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Not much into finantial stuff, are you? 
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Consumer Credit Counseling, find one of the non profit ones who are accredited by whatever bankruptcy court is in your area (ie avoid the scummy "credit counselors" who want you to get a high interest loan, have you pay them a percentage of what they "save you" etc) www.cccsofok.org/ |
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< $15000 Consumer Credit Counseling > $15000 Stop paying the bills, after about 3 months, *MUST BE BEFORE IT GOES TO COLLECTION COMPANY* the CC Company will want to "Settle". Offer 1/3 what is owed and stick with this amount, the CC Company will say OK. This means you will have to have 1/3 of what you owe when they agree to "Settle". Before all the FLAMING this is the last resort, before loosing everything you own. ALSO the Person who has their SS Number on the card will have their CREDIT trashed, which, may be a good thing (They will not get in this trouble again). This will work with most unsecured dept, any amount, $500 or $100000. But it may not be the best way to go. Another downside to this is, You WILL have to pay Federal and State income taxes on the dept that was erased. 
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