Janice wrote to me through the GetOutOfDebt.org site and asked the following question. 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.
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“Dear Steve,
Please help me I am drowning!!!!! I have five credit cards totaling a balance of around $14,000 and a house payment of $894. I also have a truck pmt of $535 but only five payments remaining. Having to pay college tution and fees at the last minute because my daughters dad had planned for her to use his GI Bill but got upset with her and refuse to let her use it two weeks before her first school day. I have been trying to find ways to cut expenses but can only cut so much.
Please tell me how to eliminate the credit card debt and lower my house payment. My FICO score is around 650 because I am over loaded.
Janice”
The Answer:
Dear Janice,
On the mortgage, contact your mortgage company and ask them about loan modification options.
The only way to reduce your credit card payment is going to be to lower the rate by consolidating with a loan through LendingClub.com or going bankrupt. For bankruptcy advice I suggest you contact a local bankruptcy attorney and go in to discuss your situation.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.