I am drowning in debt and see no light at the end of the tunnel. It is causing me daily stress and anxiety, as I am worried about my future, worried about losing my good credit when I am no longer able to make my payments, worried about my kids. I am a single mother of 3, divorced almost 6 years.
I take full responsibility and have no one to blame but myself for my situation. When I first was divorced I was in good shape, most of my debt I paid off, I had my mortgage, utilities, and 1 or 2 credit cards with acceptable balances.
Over the years as prices rose, I found myself supplementing my income with my credit, didn’t have enough money to school shop charge, didn’t have enough money for my $700.00 oil bill to have heat and hot water charge the entire winter, etc.
I know there is also some silly spending, and I would account that to average about $10,000 (could be a little less, could be a little more) God only knows why, but when my van was paid off and having a few problems, I was divorced wanted to get out the “mommy mobile” mode, and bought a used Jeep. My car loan is not my main concern though, it is the $35,000+ in credit card debt that I have.
I am just beside myself and do not know what to do. I own my home, but my ex-husband owns it with me, or I would probably see if I could refinance and tack on an extra 50,000 to pay off my debt. We owe about $108,000 on the home and it is worth maybe $250,000 (hard to say in this market). Two years ago they had it worth over 300,000 but that was inflated I’m sure.
Is there a way to pay off this debt?. I don’t want to ruin my credit by negotiating with my companies, I’ve heard that lowers your FICO score, and I want to have good credit when my kids are grown, so I can move on. If there is a way to pay this off, what is the best (if you want to call it that) way to go about it?..I would like to have some sort of plan, one that shows me that this debt will be paid off in “X” amount of years. Right now I don’t see it ever being paid off. Can I get back on my feet, or am I doomed? Thank-you for your time.
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The AnswerI Am Drowning in Debt And See No Light at the End of the Tunnel. - Tammy by Steve Rhode