Divorce pending, upside down on house we’ve had for 16 years (don’t qualify for the HART program for re-fi), two credit cards are maxed ($27,000+) and now we’re both paying rent/mortgage since I moved out into a condo. It’s put a huge strain on the finances with additional monthly costs associated with the second house. Something has to be expendable and we have 3 kids so we need the home to be secure (no foreclosure at all) and bankruptcy shouldn’t be an option. Money is way too tight.
I have even been turned down for a secure credit card ($300) recently due to debt-to-income too high since I’m still listed on the house and I was hoping to be approved before my credit goes south. My credit scores are really good but won’t be for long if I default. I haven’t paid either card in February and prior to that never missed a payment. For the last two or three months prior, they raised the minimum and I’ve paid what I can but they aren’t happy with that.
What is the smartest thing to do right now with the credit card companies sniffing that something is coming? I haven’t answered their calls. Should I work with them? I’m afraid to open up for dialogue because I’m sure even if they offer to cut the payments in half, it’s still $400+ per month & I cannot afford that.
Can they garnish my wages? What is the best approach heading into a bad situation? Avoidance doesn’t seem like it will work for too long and I don’t like living like that. What can I do?
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