Question:
Dear Steve,
I owe at least 60k on credit cards, 35k on a truck, 100k on a 30 yr fixed mortgage. House mortgage and insurance cost per month are about 1300, car note 630; credit card payments almost 1500.
Our net monthly income is 4000 for a family of 5. after asking a debt management advisor/financial advisor, I was told my best option was to talk with a bankruptcy lawyer.
We discussed income, budget, what their company would charge and lower interest they can get. Even after that information, he said our debt is quite high that even going through their company is unaffordable or illogical.
Our home equity is about 50k but we can’t access any of it due to low credit score (580).
Is there any better choice than bankruptcy and can you recommend a trustworthy debt solution company?
Joie
Answer:
Dear Joie,
It sounds like you are trying to avoid bankruptcy. Bankruptcy is the only debt solution option that gives you full legal protection, can eliminate your debt in about 90 days, and is the least expensive way to eliminate unaffordable debt.
You can compare the most common debt relief solutions using my Get Out of Debt Calculator.
It also sounds as if you have not meet with a bankruptcy attorney to discuss your specific situation. You can find a good local bankruptcy attorney and have a free discussion about what bankruptcy would mean for you. Bankruptcy is the fastest way to get a fresh start for the least amount of money.
Meeting with an attorney to educate yourself about what bankruptcy means for you does not mean you are going to file. It just means you are going to educate yourself.
There are two logical options for educating yourself about what debt relief solution makes the most logical and mathematical sense. The first choice is to meet with a credit counseling company, debt settlement company, and a bankruptcy attorney to learn all about how they can help you. Take what they all say, do your own research, and decide what option is best for you.
Another option is to schedule a consultation with someone like Damon Day, an independent debt coach, and tap into his years of exceptional experience to create a customized plan to tackle your debt.
Dealing with debt doesn’t have to be a one solution approach when you have a custom plan.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
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