In debt to my eyeballs, starting with under-employment and day care for three kids, including infant twins, 10 years ago. Paid cash for day care and put everything else on credit particularly when husband was unemployed. Snowballed from there.
Now have a loan from credit union (less than $10,000), two massive credit card balances(roughly $12,000 each) and other cards that would be manageable if I could do something about the two big ones. My husband helped me out some, but I need to use the massive cards for some expenses and ran them up again. Was late on payments fora time, which torpedoed my rating.
Cash is scarce even though I’m pulling down $140,000 a year. Pathetic. But my monthly payments are killing me. Can’t do anything with the credit union. Don’t want to deal with any more credit cards.
And afraid to tell my husband that I’m drowning, since he’s helped out before and I’m now back to where I was. His credit rating is very good but he just got us a daly needed new car. One child ready for college in another year.
I’m a big fan of Lending Club. They’ve been one of the better peer-to-peer lenders out there that makes unsecured debt consolidation loans. In fact I even help to fund them for my readers. If you do decide to go with them, let me know, in the comments section below what your loan number is and I’ll help to fund your loan. They are a legitimate lender.
The real question for me is if a loan makes economic sense for you. You’d have to take a look at the interest rate you qualified for with Lending Club and the combined interest rates of the debts you would pay off.
If you paid off the cards with the debt consolidation loan I would not be willing to bet you’d not run them back up again. Only you can really answer that. You might promise you won’t but we’ve been down that road once already.
I’m also a bit concerned that your household finances seem to be dived into his and hers. What’s going on there? Do you have an open and honest channel of communications between you and your husband about your total family finances? If not, that’s the first place I’d start before you react emotionally and just tried to borrow your way out of debt.
If you are willing to spend a bit of time, I think my book, which you can download for free, titled The Path to Happiness and Wealth, may benefit you. It will help with some introspection before just leaping at a loan.
If the loan doesn’t make mathematical sense then we should look at some other options.
I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.
Then use the free How to Get Out of Debt Calculator to review your options.
Once you’ve identified a company you want to work with, then follow my step-by-step guide on what you should look for and expect from a good debt relief company.
Please post your responses and follow-up messages to me on this in the comments section below.
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.