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Credit Cards are Calling..

post #1 of 5
Thread Starter 
And I am trying hard not to listen... DH and I are in debt to our eyeballs. We owe SO much on our credit cards, a debt consoladation loan, Dh's student loans, car, you get the picture... We don't currently own our home, although we have arranged to purchase it legally from my mother (who currently owns it) when we can get financing. I just wrote out what we owe and I had to delete it because I can't handle facing that figure. : I was just reading a thread from stretchmark about where the money goes and I feel the same way! I just dont' understand how we got into this hole, or how to get out of it... I guess what I am looking for is get out of debt tips... How do you approach a monumental credit card bill? Has anyone out there climbed the debt monster and beaten it? Where do I start?? Advice is apreciated!
post #2 of 5
Are you behind in payments? Have you tried CCC or other debt management where they freeze your cards and you pay them a reduced rate?

We had horrible cc debt and are finally paying it off. We took some drastic measures- we sold our house and used the profits to pay off some cards, and are moving into a cheap rental. We sold everything we could. Dh sold his motorcycle and truck, and drives our beat up, uncomfortable, but well-running 1983 Volvo to work. I sold everything I could, and every penny went to debt. Cash gifts from family went to credit cards. We started by paying the lowest balance first, then moving on up from there. We went from six maxed out cards (almost 30K I think) to two remaining cards with a balance of 15K.

We were behind on Discover for a few months, and dh finally called them and explained our situation, and they cut our interest to 0% and we made payment arrangements with them. In our experience we've found that the companies will work with you after you skip a few months of payments.

post #3 of 5
Thread Starter 
We aren't late at all... As a matter of fact, we haven't ever had a late credit card or loan payment... The irony is that, discounting the balance on our cards, we have really good credit because we have learned to play the game... We are never late on credit cards but are often late on utilities and things that don't report to credit agencies. Our cards aren't maxed but our balance is upwards of 26K. We have probably half that again available though... Which makes it worse because the money is there waiting to be spent.. Debt is so awful.... It's so easy to just pretend it isn't there... We really need to sell our new-ish car, unfortunatly the milage is so high that we have a fair amount of negative equaty on our loan. Anyway, thanks for the ideas...
post #4 of 5
I would try to buy that house from your mom as soon as possible (you can get first time home buyers with only 1% down or even some 100% financing options.) Owning a house is like a piggy bank all on it's own. We had 30K in debt.....we were drowning (that didnt include our cars, JUST credit card bills)....for a few years. We never thought we could buy but we did (we were like you, we never had late payments, we always paid the minimum on time but we also never got ahead that way). Our house payment was 200 more than rent but we made it work. We lived there for 2 years and put small stuff into the house like paint, sod, flowers, shrubs.......just made it look as fresh as possible. We sold it after 2 years (to avoid capital gains) and we made 110,000 off our house (the market had gone up alot higher.) In most areas they dont jump that high but you will be amazed at what a year and some fresh decorating can make you in profit. Probably enough to pay off your CC debt. If you plan to live there for a long time you can look into refinancing instead of selling.....just getting rid of that CC debt is MAJOR relief.
post #5 of 5
Looking for your money? ....honestly there isn't an easy answer (i've spent years looking). But I can recommend the book Your Money or Your Life. He recommends tracking every last cent you spend for several months. Honestly I think it is the best way you can begin to clean up your finances. If you have no idea where your money is going you have no way to face the giant mountain of debt that is building.

and a visit to the GOOD thread -- getting out of debt. It is a support group of sorts. I've just found this new forum, so I'm posting a new thread here in a few minutes.
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