My husband and I were in a “good” financial situation. I had paid off the credit cards with a consolidation loan for which I am paying $800.00 per month. In 2008, I lost my job (we are military and got transferred). we ran up the credit cards again…We now owe about $60K, plus bills, two young kids (growing like weeds). Our income is nowhere near enough to cover all the monthly payments, sometimes even the utilities get “floated.” My husband is active duty and the consolidation loan comes right out of his check. I have tried to get the bank to refinance it for lower payments on a longer term but our debt-to-income ratio + the lowered income keeps us from getting approved for that. We still have 13 months to go on that. I have already agreed to a payment plan with one bak for 2 credit cards but that is also taking out an additional $341 per month auto-payment. I’m drowning here…
What is the first step to start trying to fix unmanageable debt? Is bankruptcy my best option? Can I go to jail for this?
Active Military With a Debt Consolidation Loan We Can't Afford. Can I Go to Jail? - Carol by Consumer
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