I went through a very nasty divorce in 2010 and I had to pay my ex $57,000 to keep the house (albeit that he didn’t pay for the house or anything remotely suggesting that he owned part of it – gotta love the community property clauses)…Anyway, as a result of the divorce, I am stuck with nearly $40,000 in credit card debt. I am making the payments on each of the cards religiously but it’s frustrating because due to the interest rates it doesn’t appear that I’m making much progress (although I always pay more than the minimum). I own my home (value is about $250,000 and owe $98,000 on it). I’ve worked as an Independent Contractor for the same company for over 5 years, which is the problem I guess – the company can’t hire me as a direct employee unless I relocate to Colorado and the housing market right now doesn’t make it a good decision to sell and relocate at this point and time (and I’m not even sure I would want to). Because I’m self-employed, I’ve been told it will be difficult (to impossible) to get any type of loan consolidation. I’m VERY capable of making one monthly payment toward a consolidated debt of at least $1,000 per month but on paper apparently I don’t look that good. My credit score is over 700 but I’m not sure exactly what it’s at at this point and time (it was 750 before the divorce, but I imagine it’s gone down as a result of the debt and number of credit cards out there in my name). My net income is $3542 per month and my mortgage payment is $822.00/month – simple calculations show that I do have a good income and I have been employed consistently for years, but after reading your articles you’ve scared me to death with regard to using my bank (BofA) to try and get a loan consolidation loan…and I definitely do not want a variable rate. Do you know what options I have (if any)?
Any help you can provide would be greatly appreciated, as I would like to get this debt under control and off of my back as soon as possible. Again, I wouldn’t have any problem making at least a $1,000 payment per month to a lender if I could get my credit cards all rolled up into a nice package.
I thank you in advance for your advise and assistance. Unfortunately, I don’t know anyone with any real knowledge when it comes to this stuff and I’m more confused now then when I started, after reading all the scams out there
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.Went Through a Nasty Divorce and Need to Get My Finances in Order. - Cyndi by Steve Rhode