I have about 53K in credit card debt (18K is @29.99).
I plan to reach out to someone for help (still trying to figure out who to call first) for hopefully getting help negotiating a better deal on all the debt.
I have house; assessed value is now probably 300k and my 1st mortgage is 272K (@8.1%) and my heloc is 69K (@12.97%).
But by paying all the minimum payments via autopay, we’re struggling with what’s left to afford basic food and medicines.
1) Do I have any hope getting my mortgage refinanced given that it’s underwater and my current credit card debt
2) Should I stop paying the minimum on my credit cards right now, instead pay for our basic needs first or should wait till I can make a plan with a debt coach or bankrupty lawyer (given the potential impact on my credit score, though at the same time I’ve heard that credit card companies don’t generally want to cut a deal if you’re not behind on your payments).
Without knowing more details it is impossible to tell you exactly what to do. However if you are struggling to pay the basic things, then yes we are going to have to do something. How much of an adjustment you will need to make is not clear based on the limited information you have supplied.
The likelihood that you can qualify for a traditional refinance is basically zero, however that doesn’t mean you are not a potential candidate for a loan modification. If your cards are maxed out and you can’t afford to pay the minimums then you will likely have to let them go while we figure out if you can pay them back with lower interest rates, can approach them with some settlement offers down the road, or also potentially explore a bankruptcy.
I would recommend you schedule a telephone consultation with me so I can get a much better understanding of your overall financial situation, and then help you put together a step by step plan of exactly what you are going to need to do to get yourself out of this debt, and back in a solid financial position where you can actually cover all of your bills and start saving money again.
Damon is a talented independent debt coach that provides in-depth assistance and consultations for people struggling with debt. If you want a personal debt coach to help you through a difficult situation or want assistance to find secret discounts offered by debt settlement companies I think Damon Day is an excellent person to contact for advice and assistance. He can be reached directly at DamonDay.com
If you have a debt related question you’d like to ask, just use the online form.How Do I Refinance My Mortgage When It's Underwater and I'm Loaded With Credit Card Debt? - Dan by Damon Day