From my previous marriage, my ex-wife put me in such a large hole I can't get out of it. My credit cards have been maxed out since the divorce. I have student loans that are very high, I have no means to pay for them. Basically, I have no money after paying my secured loans every month.

How would I go about this?

cliffs:

-I have too much debt to income from my past.
-My debt to income is so high I can't get a large loan to consolidate my debt.
-Ran out of options.

 

Did you actually call a debt negotiation company to try and reduce debt by 40% and then start monthly payments?

 

First, check out the Federal Trade Commission's website on debt issues and bankruptcy here: http://www.ftc.gov/bcp/edu/pubs/cons...dit/cre19.shtm

Next, BK is a pain in the rear because it will destroy your credit for a number of years, and an attorney will have to analyze whether you qualify for a discharge or must go on a bankruptcy repayment plan. There are also a number of debts that cannot be discharged- IDK where student loans fit in since I don't handle bankruptcy law.

Also, lenders used to suspend or reduce student loan payments when a borrower ran into "hardship"-- maybe that might be something to approach the lenders about in your situation if you haven't done so already.

By the way, don't go to "credit counseling" agencies unless they are recommended in writing by the bankruptcy court, federal agency or state consumer protection agencies- most such unapproved outfits take a quick buck and leave you with a mess at the end.

G/L.

 

Your story+your avatar=nervousness.

There are free credit counseling services out there. They would know how to freeze the credit cards perpetual interest rape. That's almost a blessing to get handed off to a collection company because the interest stops mounting.

Are interest-free loans from family a possibility?

Sorry to hear you're in that situation. A co-worker was pretty maxed out for a while and he downsized his life. He drives a Suzuki and bought an old school bus he converted to an RV. His big thing was medical bills. He gave me some tips. As long as you pay on a medical bill like $5/mo, they can't turn you in for delinquency. For collection calls, he would set up payment plans with them, but he would get it in writing that they would report his payments to credit bureaus and give him a positive rating when he was done. That would leave him almost back to neutral after paying off the debt.

Good luck. You have a long road ahead, but it is doable.

 

Sorry to hear about the situation.

There are some good points above and here is what I suggest:
1. Stop using your cards. Do not add any more to the balance.

2. Call your CC companies and ask them to reduce your interest rate. You need to do this before you are late with or miss payments. They will usually do this.

3. Contact your student loan holder and ask for a hardship deferment, as Will suggested. IIRC, student loans are not subject to bankrupcy, so they will NEVER go away.

4. Cut out as much personal spending as you can. Bag your lunch for work. Don't drive anywhere you don't need to. You're probably already doing much of this, but keep looking for ways to save.

5. If the above doesn't work, or isn't enough, then start thinking about contacting the CC company about talking payment plans.

6. If that isn't enough, then find a reputable credit counceling service - one that doesn't charge you anything. There may be some government sponsored programs in your area.

7. If ALL of the above fails, then consider bankrupcy. Again, remember that the student loans will not go away because of this.

Just remember, you aren't the only one going through this and there are ways out.

Good luck and keep us posted.

 

I plan on calling my CC companies tomorrow and tell them about my hardship. With me being in the USAFR maybe they can lower my rates too.

I will use this useful info to my advantage before I think of the big B.

 

Sorry to hear about the hard times. I find it funny how if you have money the wife gets half, but when you don't you get all the debt. She should get half too.

 

Rep for that one


good luck..


BTW, that avatar makes me nervous too

 

Sorry to hear about your situation BL. Talk to a professional before you make any decisions. Maybe your divorce attorney can help or knows someone that can help.

 

my avatar shouldn't make anybody nervous. i am a responsible gun owner.

 

Didn't/don't they have special financial workout programs for active military?

 

[QUOTE=BigLizard;10029061]I plan on calling my CC companies tomorrow and tell them about my hardship. With me being in the USAFR maybe they can lower my rates too.[QUOTE]

don't tell them you hardships, they will think you are a bigger risk and often raise the rate. you have to make them think you'll transfer you balance to a lower interest card, and give them the opportunity to match or beat that interest rate.