my dh and i have been trying to get out of debt for the last couple years. for various reasons we have about 40k in cc debt. we are both now working, dh was out of work, but we don't seem to be getting anywhere. last year i had bought a car from my lease and had trouble finding someone to finance me. i think my fico is about 650. my dh may be a little better. i would love to refinance and get rid of some or all of our debt. then we could begin saving and get our heads above water again. we have 2 kids 5 and 2. have mort 30 yr fixed at 5.25% and owe about 190k and 2nd mort for 20k at about 7%. i have called all cc's and closed some accounts and negotiated low rates. wdyt? will anyone refinance us? is it worth trying? any advice would be very appreciated. i don't want to hear how or why we got into debt. we are in this spot now and i'm not sure where to go from here.
We did a refi and the house appraisal had to be atleast the amount of the refi loan.Meaning the amount we still owe on the house.Our housewas worth about 10k less than what we bought it for,but we had already paid off 20k. If you don't have atleast that then there is no point. I would spend the closing cost money by throwing it at the second mortgage PRINCIPAL. I would want to pay off that second loan first.Minimun on everything else.
Maybe get some more of the credit card debt slashed.Some hold payments and when the CC company makes a payment offer you use that held payments to pay it off.Most though just spend the cash like my friend who stopped paying her $500 rent,and yet did not save her rent for when she would have to get a new place.
I have heard that even with bankruptcy you now still have to pay some of the debt,and ofcourse your credit is way ruined for 7 years.I would not opt for that unless there was a major illness that resulted in no income.
Ok, refinancing can be an option and I would go with a credit union. They're much better and give better loans. However that being said, call your credit card companies and see what you can work out. Lower interest rates maybe even turning the credit into a loan. I had a BofA card and they actually turned it into a 5 yr loan interest was 2% and no late fees. Actually no fees at all. I haven't gotten my other credit card companies to do this but that one card turned into a loan has helped me so much.
Also you can try to settle your debt, you just have to scream bankruptsy into the phone a few times, that's how I got one interest rate lowered from 21% to 6%.
Good Luck, I know the spot you're in and it sucks!
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